Square vs. a merchant account: what it really costs
Square is easy to start with. As sales grow, a flat rate can cost more than it needs to. Here are Square's published rates, the math at real volumes, and when switching makes sense.
Square's published pricing
As published on Square's website, checked October 2026. Rates change; confirm current pricing with Square.
| In person (tap, dip, swipe) | 2.6% + 15¢ (Free plan) · 2.5% + 15¢ (Plus, $49/mo per location) · 2.4% + 15¢ (Premium, $149/mo per location) |
|---|---|
| Online or invoices | 3.3% + 30¢ (Free) · 2.9% + 30¢ (Plus and Premium) |
| Manually keyed or card on file | 3.5% + 15¢ |
| Pricing model | Flat rate; custom pricing may be available above $250,000/yr in card sales |
What that rate costs at real volume
Processing cost only, using the Square Free in-person rate (2.6% + 15¢) and a $40 average ticket. Monthly software, hardware and other fees are not included.
| Monthly card sales | Transactions | Est. monthly fees | Est. annual fees |
|---|---|---|---|
| $10,000 | 250 | $297.50 | $3,570 |
| $30,000 | 750 | $892.50 | $10,710 |
| $75,000 | 1,875 | $2,231.25 | $26,775 |
Simple arithmetic on published rates, for illustration. Your effective rate depends on your card mix, ticket size and how cards are taken. Try your own numbers in the processing fee calculator.
When Square is a good fit
- You're just starting and card sales are small or seasonal
- You want an all-in-one app you can set up yourself today
- You value predictable, simple fees over the lowest possible cost
When it's worth comparing
- Card sales are steady and above roughly $10,000 to $15,000 a month
- Your average ticket is large (auto, medical, B2B), so the percentage dominates
- You want a cash discount or dual pricing program
- You want a dedicated person to call instead of support queues
How to compare fairly
A rate on a pricing page is only part of the cost. To compare Square with any merchant account, including one through us, line up the same things side by side:
- Effective rate: total fees divided by total card sales, from a real statement.
- Monthly fees: software, gateway, PCI, statement and account fees.
- Hardware: purchase, subscription or included with an agreement, and who owns it.
- Terms: agreement length, early termination fees and whether equipment is locked to the provider.
- Pricing options: flat rate, interchange-plus or a cash discount program.
If Square comes out ahead for your business, stay. If it doesn't, we'll show you exactly why.
Frequently asked questions
Is Square more expensive than a merchant account?
At low volume, Square's flat rate is often competitive. As volume grows, interchange-plus or cash discount pricing from a traditional merchant account frequently costs less. The only way to know is to compare against your actual statement.
Can I keep Square's POS and switch processing?
Generally no. Square's POS is designed to work with Square's own processing.
What does Square charge per transaction?
As published in October 2026: 2.6% + 15¢ in person on the Free plan, 2.5% + 15¢ on Plus and 2.4% + 15¢ on Premium. Check Square's site for current rates.
Square is a trademark of Block, Inc. Clover is a trademark of Fiserv, Inc. or its affiliates. Toast is a trademark of Toast, Inc. Stripe is a trademark of Stripe, Inc. Cedarline Payments is not affiliated with, endorsed by or sponsored by any of these companies. Names are used only to identify the products being compared. Rates are as published on each company's website when checked in October 2026; they change, and your actual pricing may differ. Always confirm current pricing directly with the provider.
Other comparisons
See how your Square costs compare
Send a recent statement. We'll calculate your effective rate and show options side by side, including staying where you are.