Square Pricing and Fees: Detailed Guide for 2022
As a business, you need to accept credit and debit cards to stay competitive. But you also need to be aware of the fees associated with card processing so that you can make informed decisions about the best way to accept payments.
While there are a number of different pricing models for credit card processors, Square has a simple, flat-rate pricing structure that is easy to understand and transparent. In this article, we'll break down Square's pricing and fees so that you can see exactly how much it will cost you to use their services.
Square's Pricing Model
Square's pricing model is simple: they charge a flat 2.75% per transaction for all credit and debit card payments, regardless of the card type. There are no hidden fees or monthly charges, so you'll always know exactly how much you're paying in processing fees.
What's more, Square offers a number of discounts and incentives that can help lower your processing costs. For example, if you process more than $250 in a month, you'll qualify for their "Volume Discount" which lowers your processing rate to 2.5%. And if you use Square's invoicing feature to bill customers and they pay with a credit or debit card, you'll only be charged 2.9% + $0.30 per transaction (still a lower rate than most processors).
In addition, Square offers a "Cash Discount" program that allows you to pass on your processing fees to your customers. With this program, you can choose to add a surcharge of 2.75% to 3% for credit and debit card payments, which will be used to cover your processing fees. This is a great way to save money on processing fees if you have customers who are willing to pay the surcharge.
What Are the Fees for Using Square?
In addition to the flat-rate processing fee, there are a few other fees associated with using Square. These include:
- A $0.15 per-transaction fee for ACH direct deposit payments
- A 1% fee for international credit and debit card payments
- A $0.30 fee for each manually entered credit and debit card payment
- A $15 chargeback fee (if you lose a dispute with a customer)
These fees are all fairly standard in the credit card processing industry, so you shouldn't be surprised by them. However, it's important to be aware of them so that you can factor them into your overall costs.
How to Save Money on Square's Fees?
There are a few things you can do to save money on Square's fees. First, take advantage of their Volume Discount program by processing more than $250 in a month. This will lower your processing rate from 2.75% to 2.5%.
Second, use Square's invoicing feature to bill customers and encourage them to pay with a credit or debit card. This will save you money on processing fees, as you'll only be charged 2.9% + $0.30 per transaction.