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What commission does Square take?

Published in Payment Processing Fees 2 mins read

Square charges a commission on transactions that varies based on how the payment is processed. Generally, the commission ranges from 1.75% to 2.5% per transaction.

Understanding Square's Commission Structure

Square's payment processing fees are designed to be straightforward, with different rates applying based on the method used to accept payment. This structure helps businesses understand their costs upfront.

Card-Present Transactions

For transactions where the customer's card is physically present and processed through Square's hardware, the commission rate is lower. This typically includes secure methods like:

  • Contactless payments: Payments made by tapping a card or mobile device.
  • Chip and PIN: Transactions where a card with a chip is inserted and a PIN is entered.
  • Swiped payments: Traditional transactions where a card's magnetic stripe is swiped.

For these types of card-present transactions, Square charges a commission of 1.75% per transaction.

Card-Not-Present Transactions

A higher commission rate applies to transactions where the card is not physically present, often involving manual entry or remote processing. These types of transactions carry a slightly higher risk due to the absence of the physical card. This includes:

  • Manually keyed-in payments: When card details are manually entered into the Square Point of Sale app.
  • Recurring payments: Scheduled payments facilitated through services like Online Checkout links.
  • Square Invoices: Payments processed when customers pay an invoice sent via Square.
  • Virtual Terminal payments: Transactions processed using Square's Virtual Terminal feature, typically on a computer.

For these card-not-present transactions, Square charges a commission of 2.5% per transaction.

Summary of Square's Commission Rates

To provide a clear overview, the different commission rates are summarized in the table below:

Transaction Type Commission Rate
Card-Present Transactions
Contactless, Chip & PIN, or Swiped Card Transactions 1.75%
Card-Not-Present Transactions
Manually Keyed-in Payments 2.5%
Recurring Payments (via Online Checkout links) 2.5%
Payments via Square Invoices 2.5%
Payments via Virtual Terminal 2.5%

Understanding these rates allows businesses to anticipate their processing costs and choose the most efficient payment acceptance methods for their operations.