Square Fees and Costs Explained
Understand Square’s UK processing charges, online transaction fees and the extra costs that can sit alongside a free POS plan.
The short answer
Square’s free plan removes a software subscription from the starting budget, but processing and equipment still cost money. Build your comparison around payment channel and card origin, then add paid tools and hardware only where you need them.
In this guide
Square’s published UK payment rates
| Payment type | Published processing fee |
|---|---|
| In-person UK cards | 1.75% |
| In-person non-UK cards | 1.75% plus 1.5% |
| Online UK cards | 1.4% plus 25p |
| Online non-UK cards | 2.5% plus 25p |
| Manually entered UK card payments | 2.5% |
Square lists a Free plan at £0 monthly plus processing, alongside paid plans and tools. That does not make a complete setup free: devices, accessories and any paid software must be included. Non-UK manually entered payments have an additional charge; check the current schedule if you use that channel.
Example: a shop taking payments in two channels
Fictional monthly trading profile. A shop takes £10,000 in person on UK cards, plus £2,000 online on UK cards across 100 orders. Assume no paid subscriptions.
| Calculation | Monthly cost |
|---|---|
| £10,000 × 1.75% | £175 |
| £2,000 × 1.4% | £28 |
| 100 online orders × 25p | £25 |
| Processing total | £228 |
Online processing is £53, equivalent to 2.65% of the online sales. That is why applying only the 1.4% headline percentage would understate this example. Twelve identical months produce £2,736 in processing charges.
Why order size and card origin matter
A 25p fee is 5% of a £5 order, before the percentage charge. On a £50 order it is 0.5%. If you sell low-value products online, the number of completed payments is essential to the estimate.
Tourism, overseas customers and remote sales can also change the card mix. Ask your provider which country determines the classification and obtain a breakdown from your actual transactions. Do not assume that a customer paying in pounds makes the card UK-issued.
Compare like-for-like channels. A payment link, a typed card number and a reader transaction can have different treatment. Confirm how each method you use is priced.
Choose the software and hardware you actually need
- List your required till, stock, appointments, kitchen and staff functions.
- Check which functions are in your selected plan and which need another subscription.
- Count devices and locations separately where a charge is applied per device or site.
- Budget for receipt printing, accessories and any compatible tablet or phone.
- Confirm how refunds, disputes and transfer options affect your particular bill.
Use a current hardware quotation. Short-lived promotions and instalment totals should not be treated as permanent prices. If a free software plan meets your needs, compare it fairly against a rival’s equivalent features; if it does not, price the required upgrade.
Compare Square with your current arrangement
For an existing business, total one representative month of all provider charges, then repeat using the alternative tariff and the same sales. Add equipment purchases separately so the first-year comparison shows their impact.
Our SumUp versus Square guide shows a simple in-person example. For mixed trading, enter each channel’s sales and charges separately in the calculator. A custom quote should replace the published tariff when that is the actual offer available to you.
Common questions
Does Square’s free plan mean there are no payment fees?
No. The free plan has no monthly plan charge, but processing, equipment and any optional services still need to be considered.
Can I use the in-person rate for my whole turnover?
Only if all those transactions qualify for that rate. Separate online, manually entered and different card-origin transactions before calculating.
Put your own figures to work.
Use the free calculator to organise your costs and keep a report. If something is unclear, you can ask for a free initial review.
No registration required. Calculator entries stay in your open browser page unless you choose to share a report in a review request.
Sources and how to use this guide
Primary references checked on 15 October 2026:
Business profiles are fictional. Examples either use the explicitly identified published tariff or clearly labelled hypothetical prices. They are not customer results, market averages or personalised provider quotations. Unless stated otherwise, they use a consistent VAT basis and include only the costs listed. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.
Researching other options? Browse the payment and EPOS provider directory for provider profiles, official sources and questions to include in your quotation brief.