Introduction
Square is a popular payment processing platform that offers various services to businesses, including point-of-sale systems, online payments, and invoicing. One of the most important factors for businesses when choosing a payment processor is the fees they charge. In this article, we will discuss the different types of Square fees for business and how they can impact your bottom line.
Understanding Square’s Transaction Fees
Square Fees For Business
As a business owner, it is important to understand the fees associated with using Square as your payment processor. Square charges a transaction fee for every sale made through their platform, and this fee can vary depending on the type of transaction.
Firstly, let’s discuss the basic transaction fee. This fee is charged for every transaction processed through Square, whether it be a credit or debit card payment. The current rate for this fee is 2.6% + 10 cents per transaction. This means that if you sell an item for $100, Square will take $2.60 plus 10 cents from that sale.
It is important to note that this fee can vary depending on the country in which you are processing payments. For example, in Canada, the basic transaction fee is 2.65% + 10 cents per transaction. In Australia, it is 1.9% + 30 cents per transaction.
Next, let’s discuss the fees associated with keyed-in transactions. A keyed-in transaction is when a customer’s credit card information is manually entered into the Square app instead of being swiped or inserted into a card reader. The reason why these transactions have a higher fee is because they are considered to be a higher risk for fraud. The current rate for keyed-in transactions is 3.5% + 15 cents per transaction.
Another fee to be aware of is the chargeback fee. A chargeback occurs when a customer disputes a transaction and requests a refund from their bank. If the bank approves the chargeback, Square will charge the merchant a fee of $20 per chargeback. It is important to try and avoid chargebacks as much as possible, as they can be costly for businesses.
Lastly, let’s discuss the fees associated with international transactions. If you are a business that sells products or services to customers outside of your home country, you will be subject to additional fees. The current rate for international transactions is 3.6% + 10 cents per transaction. It is important to note that this fee can vary depending on the country in which the transaction is taking place.
In addition to these fees, Square also offers additional services that come with their own fees. For example, if you choose to use Square’s invoicing feature, there is a fee of 2.9% + 30 cents per invoice paid online. If you choose to use Square’s virtual terminal feature, there is a fee of 3.5% + 15 cents per transaction.
Overall, it is important to understand the fees associated with using Square as your payment processor. While some fees may seem high, it is important to remember that Square offers many benefits to businesses, such as easy-to-use software and quick access to funds. By understanding the fees and choosing the right plan for your business, you can ensure that you are getting the most out of Square while keeping costs under control.
