With transparent fees and lots of free tools, Square offers excellent value for all kinds of small businesses.
Square Fees: Is Square Worth It In 2026?
This article is part of a larger series on POS Systems.
Square is a payments, point-of-sale (POS), and business management tool for small businesses. It has no contracts, minimum requirements, or upfront costs for its software or payment processing tools. The basic software is free, and you have the option for monthly billed upgrades. Square deducts a flat fee on successful payment transactions, and you get low-cost hardware, with interest-free installment plans for qualified purchases.
Since Our Last Update: Square has launched new unified software plans, replacing 18 different a la carte options and simplifying business features into three subscription tiers. The entry-level plan remains free, and you get lower processing fees with higher tiers.
Square payment processing fees
Plan type | Monthly fee (per location) | In-person transactions | Online transactions | Manually entered | Invoices |
|---|---|---|---|---|---|
Square Free | $0 | 2.6% + 15 cents | 3.3% + 30 cents | 3.5% + 15 cents | 3.3% + 30 cents |
Square Plus | $49 | 2.5% + 15 cents | 2.9% + 30 cents | 3.5% + 15 cents | 2.9% + 30 cent |
Square Premium | $149 | 2.4% + 15 cents | 2.9% + 30 cents | 3.5% + 15 cents | 2.9% + 30 cents |
Square processing fees are based on three plans — Square Free, Square Plus, and Square Premium. You can choose the plan that suits your business today and switch or cancel anytime. Lower rates are also available for businesses processing over $250,000 annually.
Square PaymentsLearn more about Square in our guides:
How Square fees work
Overall, Square offers some of the best merchant services tools for new and small businesses. You’ll get the same core features and services for whatever payment methods you use — in-store, online, or virtual terminal.
- All-in-one fully robust, totally free payments, point-of-sale (POS), and business management tool with the option to upgrade to paid tiers
- All payments and sales are tracked together in your Square dashboard
- Accept Visa, Mastercard, Discover, and American Express, plus contactless payments
- Same processing rate for all card types and brands (Visa, Mastercard, American Express, Discover)
- Deposits made within one to two business days
- Instant deposit available for an additional fee of 1.75%
- Chargeback protection free for sellers and covers disputes up to $250 per month
- Custom Square pricing for sellers with annual revenue over $250,000 and average ticket size over $15
Square POS: Fees and feature comparison
When you sign up with Square, you’ll instantly have access to inventory, order, sales, and customer management tools through the free basic POS. The POS app can adapt to your business type — retail, food and beverage, beauty, appointments, and more. We’ll dive into features for specific business types below, but here are the fees associated with Square’s plans:
Square Free | Square Plus | Square Premium | |
|---|---|---|---|
Monthly software fee | $0 | $49 per location | $149 per location |
In-person processing rate | 2.6% + 15 cents | 2.5% + 15 cents | 2.4% + 15 cents |
Online processing rate | 3.3% + 30 cents | 2.9% + 30 cents | 2.9% + 30 cents |
Manually entered/ Card-on-file | 3.5% + 15 cents | 3.5% + 15 cents | 3.5% + 15 cents |
Afterpay | 6% + 30 cents | 6% + 30 cents | 6% + 30 cents |
Inventory management | Basic | Advanced | Advanced |
Marketing | Basic | Advanced | Advanced |
Reporting | Basic | Advanced | Advanced |
Team management | Basic | Advanced | Advanced |
Customer support | Monday to Friday, 6 a.m. to 6 p.m. (PT) for the first 90 days | Monday to Friday, 6 a.m. to 6 p.m. (PT) | 24/7 |
Learn more about Square’s free POS software with our Square POS review.
The basic Square POS software is a simple but versatile system designed for startup retail, service, and restaurant businesses with simple inventory management needs. It conveniently integrates inventory, checkout, payments, CRM, ecommerce, and analytics into your point of sale. You can add more features as your business grows, but the best part of this software is no monthly subscription fee.
Square’s basic POS system is free to use and can be designed to support different types of startup businesses. (Source: Square)
Features you get with the free POS system:
- Inventory management
- Cash, mobile, debit, credit, and gift card payments processing
- Invoicing
- Website builder
- Virtual terminal
- CRM
- Offline credit card payment processing
- Returns and refunds processing
- Tip management
- Digital and printed receipts
Square’s retail features are designed to specifically support retail businesses of all sizes, such as boutiques and gift shops.
Square’s higher tiers feature advanced reporting and inventory management tools for omnichannel selling. (Source: Square)
The Square Free plan covers core inventory and catalog management with automatic item and SKU creation, low-stock alerts, basic online selling, customer accounts with pickup and local delivery, pre-orders, real-time shipping rates, and basic checkout and marketing tools. Square Plus adds more control with product bundles, vendor and purchase order management, purchase order imports, transfer orders, advanced checkout, and advanced marketing features. Square Premium builds on the former by maintaining advanced inventory, online selling, checkout, and marketing capabilities, with added support and customization for larger operations.
Square POS’ food and beverage mode is designed for quick-service, full-service, fast-casual, bar, and multi-concept restaurants. It offers restaurant-specific features, such as floor management, kitchen management, customizable and intuitive order entry, and flexible payment options.
Square allows restaurants to manage online, tableside, and at-the-counter orders centrally. (Source: Square)
All Square for Restaurants plans include item and menu management, open checks, auto-gratuitity options, multi-location management, and remote device management.
- Square Free supports basic front-of-house needs with item and menu management, basic checks, and basic online ordering, but does not include the Kitchen Display System or Kiosk apps.
- Square Plus adds more advanced restaurant tools, including custom floor plans, advanced modifiers, advanced checks and online ordering, bulk menu edits, performance reporting, and closing procedure controls.
- Square Premium includes everything in Square Plus, along with seat and course management, reservation integrations, advanced modifiers, a $0 load fee for physical and eGift cards, and lower add-on app costs, making it better suited for full-service and higher-volume restaurants.
Add-on app pricing:
- Kitchen Display System app: $30 per month per device on Square Plus, $20 per month per device on Square Premium
- Kiosk app: $50 per month per device on Square Plus, $30 per month per device on Square Premium
All paid Square for Restaurants plans include a free 30-day trial.
Square POS offers features built for beauty, nail, and hair salons, spas, and tattoo and piercing shops. The basic tier lets you manage bookings, messaging, and social media integrations; higher plans come with loyalty features, SMS marketing, and staff management.
Square features nearly all tools for professionals working in automotive, commercial, transportation, pet, cleaning, and landscaping services, as well as contractors and specialists, and nonprofits.
- Square Free includes core booking tools such as unlimited calendars, custom scheduling, and automated appointment reminders, making it suitable for solo operators or simple scheduling needs.
- Square Plus expands booking functionality with multi-staff appointment booking, class packages, and multi-location management, which works better for growing teams and service-based businesses with multiple providers or locations.
- Square Premium adds advanced booking capabilities, including resource management and detailed bookings reporting, giving larger or more complex operations better visibility and control over scheduling performance.
Did you know?
- In addition to the best overall POS for small businesses, Square POS is a consistent pick for leading retail POS systems, multichannel POS systems, and POS inventory systems.
- To learn more about Square’s free POS system, read our full Square POS review.
- To learn how to set up Square POS, read our Square POS setup guide.
Square Online fees
Every free Square account comes with basic POS software, payment processing, invoicing, and a Square Online store. The online store ties into the rest of the Square ecosystem and can be managed through your Square Dashboard, where you can sync products, orders, and customers across your in-person and online sales channels.
The Square Online store is a free drag-and-drop web builder for selling goods and services online.
(Source: Square)
You can upgrade to a paid online store to get a custom domain, remove Square branding, and receive discounts on integrated shipping labels and real-time shipping calculations. Paid plans also come with advanced features like customer product reviews, abandoned cart recovery, and the ability to accept PayPal payments.
Square Online pricing plans
- Square Free ($0 per month; 3.3% + 30 cents processing fee): Website builder with SEO tools, pickup, local delivery, and shipping, social selling, and basic online selling tools. Does not include site customization upgrades, customer accounts, QR code ordering, custom domains, or real-time shipping rates.
- Square Plus ($49 per month; 2.9% + 30 cents processing fee): Everything in Square Free, plus expanded site customization, QR code ordering, customer accounts, advanced item settings, and custom domain connection.
- Square Premium ($149 per month; 2.9% + 30 cents processing fee): Everything in Square Plus, plus real-time shipping rates for more accurate delivery pricing.
When talking about online POS platforms, it’s hard not to compare any provider with Shopify. Overall, Shopify is the better option in terms of features, customization, and scalability. However, Shopify does not have a free version, and its monthly fees are more expensive even if merchants subscribe to a Square Online paid plan. So if you are primarily a merchant with a storefront looking to expand with an online presence, Square is the more cost-effective choice.
To learn more about Square Online, read our full Square Online review.
Square hardware fees
To get a complete idea of Square POS system cost, you also need to consider hardware. Mobile payments and in-store sales require credit card readers to accept payments, and Square has a variety of hardware options that let you swipe, insert, or tap cards to complete a sale. Each works on smartphones and iPads using Square’s free POS app.
The beauty of Square’s range of hardware is that it offers setup for every stage of your business. You can start with zero upfront cost, and invest only as needed.
Consider the following examples:
Business Size | Square Hardware Setup | Square Hardware Cost |
|---|---|---|
Home-based, Seasonal, Startups | Your computer or mobile device + Square Virtual Terminal | $0 |
Small startups, on-the-go | Your mobile device + Square Mobile Card Reader | $0-$59 |
Startup, single checkout storefronts | Your iPad + Square Stand | From $14 per month for 12 months ($149) |
Remote businesses that accept swiped payments | Your computer or mobile device + Square Terminal | From $27 per month for 12 months ($299) |
Storefronts that accept swiped payments | Square Register (+ optional Square Terminal) | From $39 per month for 24 months ($799) |
Growing storefronts | Square Stand/Register Kit (+ optional Square Terminal) | From $689 |
Accessories such as cash drawers, barcode scanners, kitchen printers, and thermal printers are also available and can be bought separately or bundled into a POS hardware kit.
Device | Description | Cost |
Square Mobile Card Readers | ||
 Square Reader for Magstripe |
| First free, additional $10 |
 Square Reader for Contactless and Chip (2nd generation) |
| $59 |
 Square Stand for Contactless and Chip |
| $149 or $14 per month for 12 months |
 Square Terminal |
| $299 or $27 per month for 12 months |
 Square Handheld |
| $399 or $37 per month for 12 months |
Buy Square Handheld | ||
 Square Register |
| $799 or $39 per month for 24 months |
Square Hardware Kits | ||
 Square Stand Kit |
| $668 |
 Square Register Kit |
| $1,358 |
 Square Stand Restaurant Kit |
| $1,089 |
 Square Stand Restaurant Kit and Terminal |
| $1,389 |
What we like about Square is that it offers scalable hardware options. You’ll find that Square has more hardware variety compared to Clover and has better setup flexibility than Lightspeed.
Granted, you’ll end up spending a significant amount depending on your business needs, but the range of choices and the availability of installment payment plans makes it easier for merchants on a budget.
Square fees for add-on software and other services
Square’s core products are POS, payments, and ecommerce, though the company offers a variety of other supplemental products, including invoicing, payroll, and banking that you can use alongside other solutions or individually.
Square Invoicing can be a good fit for client service businesses like consulting firms, field service businesses like contractors, made-to-order retailers, and freelance professionals that want to easily request payment from customers.
Access Square Invoices features in any Square plan; paid plans offer more customization
Square Invoices are free to create and send. (Source: Square)
You can create, send, and manage invoices through your web-based Square Dashboard or the Square Invoicing app for iOS and Android. Learn how to send a Square Invoice.
Square Payroll is subscription-based, full-service payroll software that automatically calculates payments and taxes. This service can be used independently or in tandem with Square’s other products like POS or Team Management.
Calculate and process payroll straight from your mobile phone. (Source: Square)
Square Payroll Pricing
- Square Payroll (Full-service payroll) ($35 per month + $6 per person paid): Unlimited pay runs, automatic payroll tax calculations, digital delivery of W-2s and 1099s, payments by check, direct deposit, or Cash App, direct tip tracking and importing, support for multiple tax jurisdictions, time card imports, and access to the Square Team App.
- Square Payroll (Contractor-only payroll) ($6 per person paid): Unlimited pay runs, automatic tax calculations for contractors, digital delivery of 1099s, payments by check, direct deposit, or Cash App, time card imports, and access to the Square Team App. Does not include tip tracking or multi-jurisdiction tax support.
Read our full Square Payroll review for more details on its features and how it works.
Square Shifts allows you to manage shift scheduling and publishing, timeclocks and automatic timecards, break and overtime tracking, tips and commissions tracking, and more. It integrates with Square Payroll or can be exported to a third-party payroll provider.
Some core Shifts functionality is free, while advanced features require a paid subscription
View all planned shifts by week to assign a job or an employee. A shift can be viewed weekly or daily to make changes. (Source: Square)
Square Team Communication (via the Team app) enables one-to-one and group chats, announcements, and document sharing. You can access essential features — such as managing your roster and employee performance — on the free plan. If you need more sophisticated functionality, Advanced Access unlocks features on the paid tiers. These include team-level reporting and monitoring, activity logs, and unlimited custom permission sets.
Square Banking is a service that offers businesses integrated banking solutions with traditional checking and savings accounts, as well as options for setting up investments and taking out loans. Signing up is easy as there is no lengthy application process or credit checks. There is also no monthly fee, and you don’t need to maintain a minimum balance.
Square Banking Products
- Square Checking: A checking account integrated with your Square merchant account. It comes with a debit card that provides access to your sales and loan proceeds.
- Square Savings: Integrated with Square Payments so merchants can automatically set money aside for savings, paying bills, sales tax, and more. Earns 1.75% annual percent yield (APY).
- Square Business Loans: Open to individuals who process with Square Payments with loans ranging from $300–$250,000 based on card sales through Square. Repayment is set up automatically as a portion of your total monthly sales.
Your Square Savings account allows you to set aside a percentage of your daily sales into a high-yield investment. Apply for a Square Debit Card and immediately get access to your funds.
(Source: Square)
Square Business Banking fees
Opening a bank account with Square is absolutely free; there is no minimum opening deposit and maintaining balance, and you don’t get charged for maintenance fees or overdrafts. For qualified customers, you can apply for business loans ranging from $500 to $250,000, and Square automatically deducts a fixed percentage of your daily sales to repay the loan over time, or you can prepay the loan amount.
- Opening Deposit: $0
- Monthly Fee: $0
- Minimum Balance: $0
- Credit Checks: None
- Overdraft Fee: $0
Ways to lower Square fees
With Square, merchants can launch their business with very minimal (even free, if you prefer to accept payments without a card reader) upfront cost. Your monthly Square fees can be limited to transaction rates if you use the standard POS software.
If you wish to keep your Square transaction fees, consider the following:
- Accept more in-person payments: Transaction rates for accepting in-person payments are much lower than remote payment methods.
- Refrain from manually keying in your customer card information: Manually keyed-in and card-on-file transaction rates are charged above 3%.
- Avoid buy-now-pay-later (BNPL) transactions: Square’s BNPL app, Afterpay charges expensive transaction fees compared to other top BNPL apps.
- Avoid same-day fund deposits: If possible, wait for Square’s standard 2-business day funding speed. Square charges 1.75% for same-day deposits.
Cheaper alternatives to Square fees
Square fees are small-business friendly, but if you are looking to save more, here are some Square alternatives to consider:
For omnichannel payment processing
Helcim is a suitable cheaper alternative to Square when it comes to payment processing fees. It uses an interchange-plus-plus pricing model which means it charges the interchange rate plus a small add-on rate and a flat amount for every transaction.
Helcim’s pricing schedule is designed to charge lower fees as the monthly sales volume increases. Interchange-plus pricing models usually come out cheaper than Square’s flat-rate pricing model.
Read our Helcim review to learn more.
If you have high-volume transactions, an even cheaper option is Payment Depot which only charges the interchange rate plus a flat amount for every transaction. However, it comes with a $79 monthly fee. If you have a lot of transactions in a month, Payment Depot may still come out cheaper even with the monthly fee.
Read our Payment Depot review to learn more.
For in-store payment processing
If you only need to process payments in-store, PayPal Zettle is a cheaper option. The PayPal Zettle POS app is also free to use like Square’s and its all-in-one terminal costs $199–cheaper than Square’s $299. Additionally, its processing fee is 2.29% + 9 cents per transaction, which is also lower than Square’s 2.6% + 10 cents per transaction.
Read our PayPal Zettle review to learn more.
For online payment processing
All the best ecommerce platforms we’ve evaluated offer the same payment processing fee. However, some charge monthly fees. One of the best free ecommerce platforms to consider is Shift4Shop. It costs the same as Square and has features similar to Shopify, one of the best and most popular ecommerce platforms.
Read our Shift4Shop review to learn more.
Frequently asked questions (FAQs)
Here are some of the questions we commonly get about Square fees.
Square charges a flat fee per credit card transaction as it is processed. Most of Square’s software, including the point-of-sale app, online store, invoicing, inventory tracking, and virtual terminal, are free to use.
However, Square also has paid software you can add on at any time on a month-to-month basis.
Square fees for merchants are flat-rate so it’s easy to manage costs. For card-present transactions, including swipe, tap, and chip payments, Square charges 2.6% + 15 cents. Online and invoice transactions cost 3.3% + 30 cents with Square pricing, and it’s 3.5% + 15 cents for keyed-in or card-on-file transactions.
If you process over $250,000 annually, you may be eligible for lower rates through Square’s custom pricing program.
Square credit card fees are fairly standard for mobile and online payments, especially for new and small businesses. However, there are cheaper options available, especially if you have an established business. See our guide to the cheapest credit card processing to calculate the best option for you.
No, basic Square accounts have zero monthly fees.
You can choose to add on additional software upgrades like payroll processing, advanced team management, or Plus/Premium POS plans, which do have monthly fees.
Bottom line
Square is best known for its square-shaped mobile card reader and payment processing service. However, it has grown into a platform that supports your entire business, including business management, online selling, and marketing.
Its strongest advantage is that you can easily craft a full sales and business management solution on any budget. Square pricing is set up so that the core features are free, and you only pay the Square fees for credit card processing, certain processing equipment, and optional advanced features. So, with Square, you only pay for what you actually need. Head over to Square to sign up for a free account.
