Squareup Fees

When you run a business, every penny counts. We understand that selecting the right payment provider is one of the most critical decisions you will make. It impacts your cash flow, your customer experience, and ultimately, your bottom line. Square, or Squareup Europe Ltd, has become a household name for many small businesses in the UK. They offer an accessible entry point into taking card payments with a transparent fee structure and sleek hardware. However, as your transaction volume grows, what started as a simple solution can quickly become a significant overhead. Square fees refer to the total cost of using Square, including transaction fees, software subscription charges, and hardware costs.

As your dedicated merchant services broker, we analyse the market daily to ensure you are not overpaying for your processing. We wrote this guide to give you a comprehensive breakdown of squareup fees, how they work, and where they might start eating into your profits. The payment method you use—whether in-person, online, or card-not-present—can also impact the fees you pay. More importantly, we are here to show you how we can help you find more competitive rates that scale with your success.

Square offers an all-in-one ecosystem that includes payment processing, point-of-sale solutions, and business management tools.

Understanding the Square Pricing Model

Square operates on a flat-rate pricing model. This means that for the most part, you pay the same percentage regardless of the card type, though there are distinctions between uk cards and non uk cards. For a new business or a sole trader, this simplicity is attractive. You do not need to negotiate with banks or worry about complex statements. In addition to the flat-rate model, Square offers three pricing tiers: Square Free, Square Plus, and Square Premium.

However, simplicity often comes at a premium. While we admire the accessibility Square provides, we often find that established businesses pay significantly more in processing fees than necessary. These three pricing tiers offer different features and processing rates to suit various business needs. When you work with us, we use our leverage to negotiate custom processing rates that reflect your actual volume, potentially saving you thousands a year.

The Standard Transaction Fees

The core of Square’s revenue comes from transaction fees. These occur every time you accept a payment. Transaction fees apply to both debit and credit card transactions, with online credit card transactions typically incurring higher fees due to increased risk. Unlike some traditional providers that charge a monthly rental for a terminal plus a transaction fee, Square focuses heavily on the per-transaction cost.

For an in person transaction using a Chip and PIN or contactless method, the standard fee is generally fixed. However, the costs shift significantly when you move to online transactions or manually keyed payments.

Online Payment Processing Fees

If you are selling online, the fees are structured differently to account for the increased risk of fraud associated with card not present transactions.

For online transactions involving uk cards, the standard fee is 1.4 25p. This means you pay 1.4% of the transaction value plus a fixed 25p fee. This applies to payments made through square online, square invoices, and their API integrations.

For non uk cards, the cost increases. The rate jumps to 2.5 25p. If you have a significant number of international customers, this 2.5% fee plus 25p per transaction can severely impact your margins.

As your broker, we can help you compare these costs against other payment gateway providers UK. We often find that bespoke gateways can offer lower rates for international cards, especially for high volume businesses.

In-Person Processing Costs

For a standard in person payment where the card is present, Square charges a flat percentage. This covers contactless payments, chip and pin, and mobile wallets like apple pay and google pay.

While the lack of a monthly fee on the standard plan is appealing, the percentage taken per sale is higher than what we can typically secure for our clients through a traditional merchant account. If you are processing thousands of pounds a month, that difference in percentage points translates to real capital that should remain in your business.

Hardware Costs: Getting Set Up

To accept payments in person, you need hardware. Square offers a range of devices, from simple readers to fully integrated registers. These are one-off purchases, but they represent an upfront investment.

The Square Reader

The square reader is the entry-level device. It connects to your smartphone or tablet via Bluetooth. It is small, portable, and accepts chip and pin as well as contactless payments. It is ideal for mobile traders, but for a busy countertop, it might lack the robustness required.

The Square Terminal

The square terminal is an all-in-one device with a built-in printer and screen. It does not require a separate phone to operate. It is a more professional solution for in person payments in a retail or hospitality setting. However, the cost is significantly higher than the reader.

The Square Stand

The square stand turns an iPad into a point of sale. It includes a swivel stand and a card reader built into the hardware. This is popular for cafes and boutiques that want a sleek look. You must provide your own iPad, which adds to the total cost.

The Square Register

For a fully integrated solution, there is the Square Register. This features two screens, one for you and one for the customer. It is the most expensive piece of square hardware.

Another option is the Square Kiosk, which serves as a self-serve ordering device. The Square Kiosk facilitates customer orders directly and is positioned within the Square hardware lineup as a dedicated solution for streamlined, customer-driven transactions.

When we work with clients, we look at your total cost of ownership. Sometimes, we can find providers who offer free terminal rental or subsidised hardware as part of a payment processing agreement, reducing your upfront expenditure.

The Software Plans: Free vs Plus vs Premium

Square separates its software offering into three main categories: the free plan, the plus plan, and the premium plan. Understanding the difference is vital, as the plus plan introduces a monthly fee that changes your cost structure.

The Free Plan

The free plan is where most businesses start. It includes the basic point of sale app, the ability to build a online store, and standard inventory management. There are no monthly subscription costs; you only pay the processing fees when you make a sale.

On the free plan, you get:

• Standard point of sale features.

• Basic inventory management.

• Square online store builder.

• Access to the square dashboard for reporting.

While the free plan is robust, it lacks advanced features. For example, if you need advanced inventory tools or complex table management for a restaurant, you will find this tier limiting.

The Plus Plan

The plus plan is designed for businesses that need more specialised tools. There are distinct versions: Square for Retail Plus and Square for Restaurants Plus.

This plan charges a monthly fee per location. In exchange for this fee, you get access to:

• Advanced inventory tools: Bulk intake, barcode printing, and vendor management.

• Table management: Floor plans and course management for restaurants.

• Square shifts: Advanced team management and scheduling.

• Sales trends and advanced reporting.

• Discounted processing fees for in person transactions (in some cases).

The plus plan is a commitment. If you have multiple locations, the costs multiply. We help our clients evaluate if the features in the plus plan justify the recurring expense or if a dedicated EPOS system combined with a standalone merchant account would be more cost-effective.

The Premium Plan

The premium plan is for high volume businesses that need a bespoke solution. This tier includes everything in the plus plan but often comes with custom pricing for payment processing.

However, even with custom pricing from Square, we often find that we can beat their rates. Because we pool the volume of hundreds of UK businesses, we have access to wholesale rates that a single business negotiating alone cannot achieve.

Detailed Transaction Fee Breakdown

Let us dig deeper into the specific numbers, as this is where the confusion often lies.

Card Not Present and Manually Keyed

If you take a payment over the phone and have to type the card numbers in manually, this is a manually keyed transaction. These are considered higher risk. The fees for manually keyed transactions are higher than in person swipes.

Furthermore, if you use payment links or square invoices, you are subject to the online rates. As mentioned, for uk cards, this is 1.4 25p per transaction. For non uk cards, it is 2.5 25p.

If you send many invoices, let us look at the math. On a £100 invoice paid via a UK card, you pay £1.40 + £0.25 = £1.65. On a £1,000 invoice, you pay £14.25. If you process £50,000 a month in invoices, you are paying over £700 in fees alone.

We can often secure payment processing rates for invoices that are significantly lower, or set you up with a direct bank transfer solution that costs pennies.

Online Store and E-commerce

When you use the square online website builder, you are tied to their gateway. The standard 1.4 25p applies here too. If you use a third-party platform like WooCommerce or Wix and use Square as the gateway, the fees generally remain the same.

The online store functionality is great for getting started, offering website themes and seo tools. Businesses can also purchase a custom domain for their online store, which typically involves a small annual fee and may require a paid plan. However, as your online sales grow, that per transaction fee becomes a heavy burden. We can help you integrate alternative gateways into your existing site that offer more competitive rates for online transactions.

Additional Fees and Hidden Costs

Beyond the headline rates, there are additional fees and operational costs you must consider.

Instant Transfer Fees

Square typically transfers funds to your external bank account the next business day. However, cash flow is king. If you need your money immediately, you can use the instant transfer feature.

Instant transfer fees are usually calculated as a percentage of the transfer amount. While 1% or 2% might sound small, if you rely on instant transfer daily, you are effectively paying an enormous APR to access your own money. We work with providers who offer same-day settlement as standard, without the extra charge.

Chargeback Fees

Disputes happen. If a customer challenges a payment, you face a chargeback. Square generally does not charge a separate dispute fee, which is a benefit. However, they will hold the funds while the dispute is resolved. We help you implement fraud screening tools to minimise these occurrences in the first place.

Conversion Costs

If you are accepting payments in currencies other than GBP, there may be currency conversion costs involved. This is particularly relevant if you use non uk cards frequently.

Specialised Features: Retail and Restaurants

Square has adapted its offering to suit specific industries. Understanding these nuances helps us determine if they are the right fit for you, or if we should look elsewhere.

Square for Retail

This is available on the free plan and the plus plan. The plus plan adds advanced inventory tools, which are essential for shops with large product lines. It allows you to manage inventory across multiple locations and online. It also includes barcode label printing.

Square for Restaurants

This version focuses on speed and front-of-house operations. The free plan covers the basics, but the plus plan is required for table management, course firing, and advanced reporting. It also integrates with kitchen display systems (KDS), which reduces the need for paper tickets.

Square Appointments

For appointment based businesses like salons and spas, Square Appointments is a strong contender. It allows clients to book online and integrates with google calendar. The free plan works for a single individual. If you have up to five employees or more, you generally need to upgrade to a paid tier. This tier also allows you to track email marketing campaigns and manage customer accounts more effectively.

Security and Compliance

When it comes to payment processing, security and compliance are non-negotiable. Square takes these responsibilities seriously, providing businesses with peace of mind for every online transaction. As a PCI-DSS compliant provider, Square adheres to the highest industry standards for handling sensitive payment data, ensuring that both you and your customers are protected from potential threats.

Square’s payment processing platform employs advanced security features such as end-to-end encryption and tokenization, safeguarding cardholder information from the moment a payment is made. Two-factor authentication adds another layer of defense, helping to prevent unauthorized access to your account. These measures are especially important for online transactions, where the risk of fraud can be higher.

By choosing Square, you’re not just getting a payment processor—you’re partnering with a company that prioritizes the safety of your business and your customers. This allows you to focus on growing your business, confident that your payment processing is secure and compliant with industry regulations.

Customer Management

Building strong relationships with your customers is key to long-term success, and Square offers a suite of customer management tools to help you do just that. With Square, you can easily create and manage customer accounts, track purchase history, and offer personalized experiences that keep customers coming back.

Square’s platform enables you to launch targeted marketing campaigns, send promotions, and track the effectiveness of your email marketing efforts—all from one dashboard. The ability to store customer payment information and order history streamlines the checkout process, making it easier for customers to make repeat purchases and for you to reward loyalty.

By leveraging these customer management features, you can increase retention, boost sales, and deliver a seamless experience that sets your business apart. Whether you’re running a loyalty program or simply keeping in touch with your best customers, Square’s tools make it easy to nurture those valuable relationships.

Inventory Management

Efficient inventory management is essential for any business that sells products, and Square’s integrated tools make it simple to stay on top of your stock. With real-time tracking across multiple locations, you’ll always know what’s in stock and what needs to be reordered. Low-stock alerts and automatic notifications help prevent costly stockouts and overstocking.

Square’s inventory management system is fully integrated with its point of sale, so every sale automatically updates your inventory levels. This seamless connection means you can manage inventory, process sales, and monitor performance all in one place. Advanced reporting features let you analyze sales trends, identify your best-selling items, and make informed decisions about purchasing and promotions.

By using Square’s inventory management tools, you can reduce waste, improve efficiency, and ensure you always have the right products on hand to meet customer demand.

Reporting and Analytics

Understanding your business performance is crucial for growth, and Square’s reporting and analytics tools put actionable insights at your fingertips. With comprehensive reports on online sales, in-person transactions, and sales trends, you can see exactly how your business is performing across every channel.

Square’s analytics dashboard provides detailed breakdowns of revenue, customer demographics, and inventory levels, helping you spot opportunities and address challenges quickly. Track key metrics like average transaction value, customer retention, and sales growth to measure your progress and refine your strategies.

Whether you’re looking to optimize your product mix, identify peak sales periods, or understand customer buying habits, Square’s reporting tools give you the data you need to make informed, data-driven decisions. By leveraging these insights, you can drive business growth and stay ahead of the competition.

Comparison: The “We” Advantage

We have detailed the costs of square pricing. Now, we want to explain why working with us is often the smarter financial move.

Volume Leverage

Square offers a “take it or leave it” rate for most businesses. Unless you are processing millions, you are on the standard tariff.

We work differently. We aggregate the volume of all our clients. This gives us the bargaining power of a massive corporation. We negotiate with major banks and processors to secure rates that are typically reserved for enterprise-level clients. We then pass these savings on to you.

High Risk and Hard-to-Place Industries

Square has strict acceptable use policies. If you operate in a sector deemed “high risk,” you may find your account suddenly frozen or closed without warning.

As a merchant services broker uk, we specialise in high risk merchant account instant approval (or as close to instant as compliance allows). We know which banks have an appetite for your specific industry. We ensure you are placed with a provider that understands your business model, securing your cash flow against unexpected closures.

Customer Support

When things go wrong with a massive tech company, it can be hard to speak to a human. When you work with us, you have a dedicated partner. We handle the complexity. If you have a billing query or a technical issue, we advocate on your behalf.

Is the Square Plus Plan Worth It?

This is a question we hear often. The plus plan costs a monthly fee, typically around £49 or £69 depending on the specific software (Retail or Restaurants).

If the plus plan saves you money on processing fees, it might be worth it. For example, if the plus plan lowers your in person rate from 1.75% to 1.6%, you need to process enough volume to cover the monthly cost with that 0.15% saving.

Let us do the maths: To save £60 a month with a 0.15% reduction, you need to process £40,000 monthly. If you process less than that, the plus plan is costing you more than the savings it generates, unless you absolutely need the specific software features like table management or square shifts.

We can help you run these numbers. We might find that you can get the features you need from a different provider with no monthly fee and a lower transaction rate from day one.

Alternatives to Square Hardware

While the square terminal and square register are pretty, they are proprietary. You cannot use them with another processor. If you leave Square, that hardware becomes a paperweight.

We generally recommend standard industry hardware that can be reprogrammed if you switch providers. This gives you freedom. If a provider raises their rates, we can move you to a cheaper one without you needing to buy all new equipment.

Mobile Card Readers

Just like the square reader, we can source compact, Bluetooth mobile readers that connect to your phone. These are perfect for in person transactions on the go.

Smart Terminals

We can provide smart Android-based terminals that look and feel like a smartphone but have a built-in printer. These can run various apps, handle inventory management, and accept google pay and apple pay, often with lower transaction fees than the square terminal.

Online Strategies for UK Businesses

If you rely on online sales, sticking with the 1.4 25p rate is rarely the most economical choice for a scaling business.

We can integrate a payment gateway that connects directly to your bank. These gateways often charge a flat monthly fee but a much lower percentage per transaction.

For example, on a £50 sale:

• Square (UK card): £0.70 + £0.25 = £0.95.

• Alternative Gateway (typical): 1% + 10p = £0.60.

That is a 35p saving per transaction. Over 1,000 transactions, you save £350. Over a year, that is £4,200 pure profit.

And remember, for non uk cards, the difference is even starker given the 2.5 25p fee Square charges.

Square Invoices and Recurring Payments

Using square invoices is convenient. You can send unlimited invoices on the free plan. However, the processing fee applies every time a client pays.

If you are a B2B business collecting large sums, we strongly advise against paying percentage fees on invoices. We can set up direct debit solutions or bank transfer initiations (Open Banking) that cap the fee at a few pence, regardless of the transaction size.

Why You Should Let Us Audit Your Fees

You might think that switching providers is a hassle. You might worry about downtime or retraining staff. We handle all of that.

We start by looking at your current setup. If you are using squareup europe ltd services, we analyse your statement to see exactly what you are paying in card transactions, monthly fee charges, and square hardware costs.

We then present you with a comparison.

1. Cheapest card payment machine options.

2. Total estimated savings on processing fees.

3. Better hardware options for in person sales.

4. Gateways for online transactions that integrate with your existing website.

Our service to you is free. We are paid by the banks for bringing them your business. This aligns our interests with yours; we only succeed if we find you a deal that makes you want to switch.

Integrating with Your Workflow

We understand that square point of sale integrates well with other tools. You might be using square loyalty to retain customers or square shifts to manage your team.

When we propose a switch, we ensure the new solution matches or exceeds your current operational capabilities.

• Need inventory management? We have EPOS partners.

• Need professional branding on receipts? We can configure that.

• Need seo tools or website themes? We work with e-commerce platforms that offer total design freedom.

• Need add on tools for accounting? Our solutions integrate with Xero, QuickBooks, and Sage.

The Verdict on Square

Square is a fantastic product for micro-businesses and hobbyists. The free plan allows anyone to start selling with zero risk. The square reader is an iconic piece of design that lowered the barrier to entry for card payments.

However, “easy” is not always “economical.” As you scale, the flat-rate model of squareup fees becomes a tax on your growth. The 1.4 25p and 2.5 25p fees for online sales, combined with the costs for in person transactions, mean you are paying a premium for convenience.

For small businesses transitioning into medium or large enterprises, or for high volume businesses from day one, there are better options.

Next Steps

Do not let processing fees erode your hard-earned margins. You do not need to figure this out alone.

We are experts in payment processing. We know the pricing tiers, the hidden costs, and the negotiation tactics that banks respond to.

Here is what we can do for you today:

1. Upload your statement: Send us a recent statement from Square or your current provider.

2. Free Analysis: We will break down exactly what you are paying effectively per transaction.

3. The Proposal: We will present a tailored solution that reduces your transaction fees, potentially upgrades your point of sale hardware, and keeps more profit in your business.

We aim to save you money. We aim to secure your compliance. We aim to be the partner you trust with your financial infrastructure.

Contact our team today. Let us compare card processing fees and show you what you could be saving. Stop paying retail rates for your payments. Switch to us, and access the wholesale market.