Square is popular with small businesses and freelancers for its simple, flat-rate pricing and free POS hardware for card readers. The fee varies by how you accept the payment — and that difference adds up quickly.
Square Standard Rates (2026)
| Payment Type | Rate | Why Different |
|---|---|---|
| In-person (tap/chip/swipe) | 2.6% + $0.10 | Lowest fraud risk |
| Online checkout | 2.9% + $0.30 | Card not present |
| Invoices (free plan) | 3.3% + $0.30 | Invoice-based billing |
| Manually keyed / card on file | 3.5% + $0.15 | Highest fraud risk |
| ACH bank transfer | 1% (min $1.00) | Bank-to-bank, lower risk |
Square also offers Plus and Premium plans with lower rates in exchange for monthly fees. Standard (free) plan shown above.
Square vs Stripe vs PayPal (Online)
| Processor | Online Rate | Fee on $500 |
|---|---|---|
| Square | 2.9% + $0.30 | $14.80 |
| Stripe | 2.9% + $0.30 | $14.80 |
| PayPal | 3.49% + $0.49 | $17.94 |
For online payments, Square and Stripe are essentially identical in price. The choice comes down to ecosystem: Square for brick-and-mortar businesses that also sell online, Stripe for developer-heavy integrations.
When Square Wins
- Free hardware: Square provides a free magstripe reader and sells chip/tap readers at low cost — great for in-person sellers just starting out.
- All-in-one ecosystem: POS, invoicing, payroll, appointments, and online store in one dashboard.
- In-person rate: At 2.6% + $0.10, the in-person rate is lower than online, rewarding businesses that primarily sell face-to-face.
- No monthly fee: The free plan has no monthly cost — you only pay when you get paid.
Watch Out: Manually Keyed Rate
If you manually type in a card number (or use a saved card on file), Square charges 3.5% + $0.15 — significantly higher than in-person. For a $200 transaction, that's $7.15 vs $5.30 in-person. Always swipe/tap when possible.
Compare Stripe vs PayPal fees