A new business can accept card payments the same day by opening a Square account: no monthly fee on the Free plan, and processing at 2.6% + 15¢ in person, 3.3% + 30¢ online, and 3.5% + 15¢ keyed (Square US published pricing, verified 2026 following its October 2025 restructure). No merchant account application, no contract, no setup fee. Below: exactly what you pay, what the alternatives cost, and the setup order that gets you paid fastest.
Updated July 28, 2026 · figures verified against the sources cited below.
What accepting payments actually costs in 2026
Square's US pricing after the October 2025 overhaul and the January 2026 online rate change:
In person (tapped, dipped, swiped): 2.6% + 15¢ on the Free plan. Online and invoices paid by card: 3.3% + 30¢ on Free. Manually keyed or card-on-file: 3.5% + 15¢ on every plan. ACH bank transfer on an invoice: 1%, with a $1 minimum. Instant transfers: 1.95%. Standard next-business-day transfers are free.
Software tiers are $0 (Free), $49/month (Plus), and $149/month (Premium). Plus drops in-person to 2.5% + 15¢ and online to 2.9% + 30¢; Premium drops in-person to 2.4% + 15¢. On roughly $12,000 a month or less in mostly in-person sales, Free is the right plan. Hardware starts at $0 for Tap to Pay on a phone, $59 for the contactless reader, $299 for a terminal with a printer.
Recommended
Start accepting payments with Square
No monthly fee on the Free plan, no contract, and no chargeback fee. Card reader, invoices, and online checkout in one account, which is why it is the default I recommend for a first setup.
See Square Pricing →The four ways money can reach you
Pick based on how you actually sell, not on what sounds complete:
In person: a reader or your phone. Lowest rate, instant close, best for trades, services, markets, and any business that meets customers.
Payment links: a URL you text or email. Zero setup, works before you have a website, and it is how most new service businesses take their first deposit.
Invoices: for B2B and larger tickets. Card at 3.3% + 30¢, or route large invoices to ACH at 1% and keep the difference, which on a $3,000 invoice is $89 saved.
Online checkout: when you sell products or bookings at volume. Highest rate, highest leverage.
Fee math that changes decisions
On a $100 in-person sale you net $97.25. On a $100 online sale you net $96.40. On a $3,000 invoice paid by card you pay $99.30; paid by ACH you pay $10. Steering large invoices to bank transfer is the single highest-value habit in this whole article.
Square charges no chargeback fee, unlike most processors that charge $15 to $25 per dispute. You still lose disputed funds during review, but there is no penalty on top. The real risk with any flat-rate aggregator is account holds, so if a sudden fund hold would break your business, read the terms before scaling volume through it.
Free tool
Which Business Is Right For You?
Take the 2-minute quiz and get matched to a business that fits your budget, your skills, and how much time you actually have.
Try it free →The setup order that gets you paid this week
One: open the account with your legal name and business details. Two: link a business bank account, not a personal one, so your deposits and your bookkeeping start clean. Three: create one payment link and send yourself a $1 test. Four: order hardware only if you sell in person. Five: turn on automatic receipts, which prevents most disputes before they start.
You do not need an LLC, a website, or a merchant account to start. You need a way for a customer who already wants to pay you to actually do it. That can be live in under an hour.
Sources
- NerdWallet — Square Fees: Pricing for 2026
- Swipesum — Square Fees Explained 2026, verified against Square's published pricing
What people ask me
How can a new business start accepting card payments?
Open a Square account, link a business bank account, and send a payment link or use a reader. There is no merchant account application, no contract, and no monthly fee on the Free plan.
What does Square charge in 2026?
2.6% + 15 cents in person, 3.3% + 30 cents online or for card-paid invoices, 3.5% + 15 cents for manually keyed payments, and 1% for ACH bank transfers on invoices, on the Free plan.
Is there a monthly fee to accept payments?
Not on Square's Free plan. Paid tiers cost $49 and $149 per month and lower processing rates, which only pays off at higher volume, generally above roughly $12,000 monthly.
What is the cheapest way to get paid on a large invoice?
ACH bank transfer at 1% with a $1 minimum. On a $3,000 invoice that is about $10 versus roughly $99 by card.
Do I need an LLC or a website to accept payments?
No. A payment link works before you have either. You can start as a sole proprietor and add structure later.
Does Square charge chargeback fees?
No. Square does not charge a per-dispute fee, unlike processors that charge $15 to $25. You still lose the disputed funds during review.
Heads up: some links here are affiliate links. If you buy through one, I may earn a small commission. It costs you nothing extra. I only recommend tools I use myself.
Free Download
Not sure where to start?
Grab The $0 Startup Checklist. It's every step you can take this week to start a business without spending money. In order. No fluff.