When using Square to accept payments, understanding how much you’ll pay in fees (and how much you’ll actually take home!) is essential.
That’s where our Square Fee Calculator (below) comes in. Just enter the transaction amount, and you’ll instantly see how much Square will deduct and what you’ll take home.
After using the calculator, read on to understand how Square’s fees work and why calculating them is important for your business.
How Square Fees Work
Square charges a fee for every transaction, which varies depending on how the payment is accepted:
In-person payments
In-person payments refer to transactions where a customer physically taps, inserts (chips), or swipes their card on a Square reader or terminal, incurring a fee of 2.6% + $0.15 per transaction.
Online payments
Online payments occur when customers enter their card details on a website or app. Due to increased fraud risk, the processing fee is 2.9% + $0.30 per transaction.
Manually entered card payments
Manually entered card payments (keyed-in transactions) happen when a merchant manually types in the card details instead of using a card reader, resulting in the highest fee of 3.5% + $0.15 per transaction due to greater fraud and chargeback risks.
Calculating Square Fees
To determine the fee for a specific transaction, you can use the following formula:
- Square Fee = (Transaction Amount × Percentage Fee) + Fixed Fee
- For a $100 in-person transaction: Fee = ($100 × 2.6%) + $0.15 = $2.60 + $0.15 = $2.75
- Square will deduct $2.75 ($2.60 + $0.10), leaving you with $97.25
Square Fees are automatically deducted before deposits are made into your account, so knowing how much you’ll receive upfront helps with pricing and financial planning.
Check out our guide about Square POS pricing here to learn more about their subscriptions, hardware, processing, and more.
Why Use a Square Fee Calculator?
Using a fee calculator simplifies your workflow and helps you:
- Quickly determine net earnings: No need for manual math. Just input the transaction amount and see the exact fee.
- Price products and services effectively: Set prices that account for processing fees while maintaining profit margins.
- Compare fees across payment methods: Decide whether it’s worth offering online payments or if in-person transactions are more cost-effective.
Other Factors to Consider
While Square’s standard fees are straightforward, a few additional factors can impact what you take home:
- Refunds – Square does not refund processing fees when a customer is reimbursed.
- Chargebacks – If a customer disputes a transaction, you may lose the amount unless you successfully challenge the claim.
- Square for Retail or Square for Restaurants – These upgraded plans have different pricing structures that could affect your fees.
Final Thoughts
Use the Square Fee Calculator above to see exactly what you’ll receive after fees. If you’re looking for Square POS Alternatives that allow more control over payment processing, consider alternatives like KORONA POS, which lets you choose any payment processor. Sign up for a free demo by clicking below.
