Square is best known for its white, square-shaped mobile card reader and simple, flat-rate payment processing service. But did you know Square offers a full suite of tools to support your entire business, including retail, mobile, and online sales? In this guide, we detail the many things Square can do for you, and what it all costs.

1. Square Fees for Payment Processing & Equipment

From mobile and in-store sales to online selling and invoicing, Square ties all of your business’s payment processing needs into one tidy package. Here’s a quick overview of everything Square offers and the costs involved, including the types of payments you can process, the equipment you might need, and other services.

Square Fees for Credit Card Payment Processing 

Square charges very simple, flat-rate credit card processing fees for the following types of payments:

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Square’s Payment Processing Equipment

Mobile payments and in-store sales require credit card readers to accept payments. Square has a variety of readers that let you swipe, insert, or tap cards to process payments. Each of these work on smartphones or tablets using Square’s free point-of-sale app.

Square Equipment	Cost
Mobile Swipe Payments: Square Magstripe Reader	Free
Mobile Chip Card Payments: Square Chip Card Reader	$29 one-time purchase
Mobile Chip Card & eWallet Payments: Square Contactless Reader	$49 one-time purchase You also get a free Magstripe reader for swiped payments Add an optional dock for $29
Retail Point-of-Sale Register: Square Stand for iPad	$169 without iPad $498 with iPad one-time purchase Includes Contactless Reader & Dock and a USB hub for connecting things like a printer or cash drawer (not included)

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Square’s Business, Customer & Employee Management Features

You get a full suite of business, customer, inventory, and marketing tools in every Square account. Many are free but some have added costs. Here’s a look at all of Square’s business features and their costs.

Now that you have an idea of all that Square can do for your business and the costs let’s look at each of these features in detail.

2. How to Process Various Payments Using Square

At the heart of Square’s many services is a secure and robust payment system that covers every payment processing need with just a few flat-rate fees:

Whatever payment methods you use for your business: in-store, online, or virtual terminal, you’ll enjoy the same core features and services:

• No monthly fee to accept and process credit cards
• All payments and sales are tracked together in your Square dashboard
• Accept Visa, Mastercard, Discover, American Express, JCB & UnionPay
• Same rate for all cards and card types: debit, credit, prepaid, rewards & corporate
• Deposits made within 1-2 business days
• Instant deposit available for an additional fee of 1%
• Chargeback Protection free for sellers and covers disputes up to total of $250 / month
• Custom pricing for sellers with annual revenues over $250,000 and average ticket size over $15.

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Why do Payment Processing Fees Differ?

Did you notice above that some payment types charge a higher fee than others? Square’s payment processing fees are based on how the sale is made: in-person, over the phone, online, or via cash transfer. Some have higher fees than others based on the risk involved. Here’s a closer look at what these risks are, and how they apply to your business:

In-person Mobile & In-store Payment Fees Explained

In-person sales where you physically handle the buyer’s card are called card-present transactions. Card-present payments have lower fees than online payments since you can check the customer’s ID against the card, creating a lower fraud risk. These transactions can be made via:

• Swipe: Swipe the card’s magnetic strip through a card reader
• Dip: Insert a chip card into a chip card reader, this is considered a more secure transaction than a swipe
• Tap: These are contactless transactions made using mobile wallets like Android Pay or Apple Pay

Square has just one credit card processing fee for all types of card-present payments:

Source: Square

Card-present payments require equipment that lets you swipe, dip, or tap buyers’ cards for mobile payments or in-store sales. Here are your options, what each does, and the costs:

Square Equipment	Payment details	Cost
Square Magstripe Reader	Process mobile payments using your smartphone or tablet Accept credit and debit cards via swipe	Free Powered by Free Square Point-of-Sale mobile app
Square Chip Card Reader	Process mobile payments using your smartphone or tablet Accept credit and debit cards via swipe or insert (dip) for chip cards	$29 one-time purchase Powered by Free Square Point-of-Sale mobile app
Square Contactless Reader	Process mobile payments using your smartphone or tablet with a wireless connection Accept tap payments like Apple Pay and Android Pay, plus credit and debit chip cards via insert (dip)	$49 one-time purchase Powered by Free Square Point-of-Sale mobile app Package also includes a Magstripe reader for swiped payments
Optional Dock for Square Contactless Reader	Gives you a convenient stand for Square Contactless Reader for countertop use, plus continually charges reader	$29 one-time purchase
Square Stand for iPad Retail Point-of-Sale Station	Accept all types of point-of-sale payments. Swipe cards on stand, or use the Contactless Reader (included) to dip chip cards or tap for Apple Pay and Android Pay	$169 without iPad $498 with iPad One-time purchase Powered by Free Square Point-of-Sale app Includes Contactless Reader & Dock and USB hub to connect printers, cash drawer & barcode scanner

So that sums up all the ways you can accept credit cards and mobile wallet payments for in-person sales using Square, and what it costs. Now let’s look at how you can accept payments via other means.

Online & Virtual Terminal Payment Fees Explained

Payments, where you aren’t face-to-face with the buyer, are called card-not-present (CNP) transactions. These include virtual terminal and online store sales, as well as online invoice and recurring payments. Card-not-present transactions have higher fees than card-present sales since you can’t check the customer’s ID against the card, creating a higher fraud risk. You’ll see these transactions called:

• Keyed-in Payments: This is where you type a customer’s card into the virtual terminal on your Square account dashboard. This is handy for taking credit card payments over the phone for orders and invoice payments.
• Card-on-file Payments: These are automatic or recurring payments made when your customer gives permission to keep their card on file for regular payments.
• Online Payments: These are orders placed in your online store or invoices paid online

Square has two different processing fees for card-not-present transactions, and we list those below. But the good news is that these types of payments have no equipment costs since they all are processed using your free Square account dashboard.

So we’ve covered all the ways Square can process in-person, virtual, and online credit card payments, and those costs. But there’s still one more way that Square lets you accept payments from your customers. We’ll look at that next.

Cash Transfer Payment Services Using Square Cash

Square Cash lets your customers, family, and friends send instant cash transfers:

As you can see, it costs your customers nothing to send you a cash transfer, and your Square payment processing fee is 2.75%. That’s it! You also can use Square Cash to send payments to friends and family for free. Click here to learn more about using Square Cash.

Now you have a complete picture of the many ways your business can accept payments through Square, and what everything costs. Now let’s look at how Square can help you manage and grow your business, too.

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3. Square’s Business, Customer & Employee Management Features

Square has grown from a payment processing solution into a cutting-edge platform that supports your entire business, offering a slick retail point-of-sale system, free online store, plus a full suite of business, customer, inventory, and marketing management tools. Many features are free but some have added costs, and we break it all down for you below.

Business & Sales Management Features

These are the basic operating features that keep your business running smoothly and help you stay on top of all your sales activities and data.

Customer Relationship Management & Marketing Features

Square brings all of your key marketing and customer relations tasks under one roof and integrates it with all of your customer data. You can craft email campaigns that are fine-tuned to grab customers’ attention and bring in more sales, plus use feedback and loyalty programs to keep your name top-of-mind.

Employee Management & Payroll Features

Square’s Employee Management features let you easily manage key employee activities including system access, role assignments, and timekeeping, even across multiple locations. Plus, the added Square Payroll service fully integrates to simplify all of your payroll tasks.

So you see, Square brings a lot of functionality to the table and many valuable features are included at no cost in your free Square account. Since everything integrates seamlessly, you can easily add services as your growth demands. Best of all, every feature ties into your existing data the minute you turn it on.

Square has one more service that can help grow your business: Sales-based small business loans. Let’s see how this can help you expand when the time comes.

4. Square Capital Small Business Financing Services

Square Capital is a service that loans your business money based on your Square account activity. Here’s how it works:

Step 1: Automatic eligibility and loan amount is based on your Square processing volume
Step 2: Quick approval by accepting the Capital offer via your Square dashboard
Step 3: Funds are deposited within one business day
Step 4: Loan payments are automatically deducted from your daily Square deposits

Square Capital Loan Costs

Your actual loan amount and fee is determined by your credit history and Square sales volume. But here’s an example of what it would cost with a 13% loan fee, and how your daily loan payments work:

There are two advantages to Square Capital’s daily loan repayments:

1. You don’t have a large payment to plan for each month. Instead, small amounts are removed from your daily Square deposits so they’re easy to work into your cash flow.
2. Daily payments are a percentage of daily sales, so when sales are up and can afford to pay more, you do. And if sales slow, you pay less.

Sound Interesting? The following is all you need to take advantage of Square Capital business loans, and you can click here to learn more:

1. A Square account processing payments regularly
2. Must be 18 years old or older
3. Must be a US citizen
4. Must have a valid U.S. bank account and Social Security number

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The Bottom Line

Square is best known for its white, square-shaped mobile card reader and payment processing service. But over the past few years, Square has grown into a platform that supports your entire business, including payment processing, business management, online selling, marketing, and much more.

The nice thing about Square is that with it, you can easily craft a full sales and business management solution on any budget. 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. And speaking of money, if you need an injection of capital, Square Capital makes the loan process quick and repayments simple. It’s no wonder Square is considered a top solution for small business.

Do you use Square for your business? If so, how do you use it to manage your business and do you have any favorite features? Please share your thoughts in the comments below.

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