Square Invoice Fees (2026): Free vs Plus, ACH and Cards

Quick answer: Square invoice fees in the US are 3.3% + 30¢ for card payments on Square Free and 2.9% + 30¢ on Square Plus. Card on file is 3.5% + 15¢, ACH bank transfer is 1% with a $1 minimum (capped at $10 on Plus), and Afterpay is 6% + 30¢. Sending invoices is free; you pay when the customer pays.

Square Invoices is popular with local service businesses because it ties invoicing to the same account as a card reader and point of sale. Before you rely on it, it's worth knowing exactly what each payment method costs. This guide breaks down current Square invoice fees, shows the maths on a real invoice, and explains when it makes sense to send your own invoice from our free invoice generator with Square as just one payment option.

Square invoice fees in the US (October 2026)

These rates come from Square's US help center article on processing fees, checked on 23 October 2026.

Payment type	Square Free	Square Plus
Card paid online through an invoice	3.3% + 30¢	2.9% + 30¢
Card on file or manually entered	3.5% + 15¢	3.5% + 15¢
ACH bank transfer via invoice	1%, $1 minimum	1%, $1 minimum, $10 cap
ACH paid into Square Checking	No fee	No fee
Afterpay	6% + 30¢	6% + 30¢
Monthly subscription	$0	Paid plan; see Square's pricing page

Square applies one rate to "online or invoices" card payments, so an invoice paid by card costs the same as an online checkout payment. Square has revised its plan structure and invoice rates more than once in recent years, so treat this table as a snapshot and check the help center before quoting fees to a client.

What changed in Square's invoice pricing

Older guides often quote 2.9% + 30¢ for every Square invoice, and that's no longer the whole story. Today the lower card rate is a feature of the paid plan, while the free plan pays 3.3% + 30¢. ACH pricing has also shifted: the free plan pays 1% with a $1 minimum, while the paid plan gets a $10 cap that makes large bank payments much cheaper.

If you set your prices using an older fee figure, a 0.4 percentage point difference is easy to miss. On $50,000 a year of card-paid invoices, that gap is $200.

Worked example: an $800 Square invoice

A handyman invoices $800.00 for a bathroom repair. Here's what he receives depending on how the customer pays.

Customer pays by	Fee calculation	Fee	He receives
ACH (Free or Plus)	1% of $800	$8.00	$792.00
Card online, Square Plus	2.9% of $800 = $23.20, + $0.30	$23.50	$776.50
Card online, Square Free	3.3% of $800 = $26.40, + $0.30	$26.70	$773.30
Card on file	3.5% of $800 = $28.00, + $0.15	$28.15	$771.85
Afterpay	6% of $800 = $48.00, + $0.30	$48.30	$751.70

Now take a $4,000 kitchen job. ACH on the free plan costs $40.00 (1%). On Plus, the same payment is capped at $10.00. A card payment on Free would cost $132.30 (3.3% of $4,000 is $132.00, plus $0.30). For larger invoices, steering customers to bank payment saves real money.

Is Square Plus worth it for invoices?

Plus lowers the online card rate by 0.4 percentage points and caps ACH at $10. Every $1,000 of card-paid invoices saves you $4.00 on Plus. To find your break-even point on card fees alone, divide the monthly subscription by 0.004. For example, if a plan cost $40 a month, you'd need $10,000 of card-paid invoices a month before the card saving alone covered it.

The ACH cap can change the picture. If you invoice large jobs and customers pay by bank, a single $6,000 ACH payment costs $60 on Free and $10 on Plus. Add up a typical month's ACH payments, compare both totals, and include any Plus features you would actually use, such as extra invoice customization or automation. Square offers trials of paid plans, so you can test it against a real month.

How to lower your Square invoice fees

• Turn on ACH for invoices and mention it in your invoice note. Many customers will pay by bank if they're asked.
• Use Square Checking if it suits you, since Square says ACH payments deposited there have no fee.
• Avoid card-on-file charges for large one-off jobs; they carry the highest card rate.
• Think twice about Afterpay on low-margin work. At 6% + 30¢, it can cost more than the profit on a small job.
• Take deposits. Splitting a big job into a deposit and a final payment doesn't reduce percentage fees, but it reduces the risk of a large card dispute. See our guide on deposit invoices.
• Offer a bank transfer option outside Square. Listing your bank details on the invoice gives customers a no-fee route. Our guide to bank details on an invoice shows what to include.

Square vs PayPal vs Stripe on a $1,000 card invoice

Provider (US)	Card rate on invoices	Fee on $1,000
Square Plus	2.9% + 30¢	$29.30
PayPal invoicing	2.99% + $0.49	$30.39
Stripe Invoicing Starter	2.9% + 30¢, plus 0.4% invoicing fee	$33.30
Square Free	3.3% + 30¢	$33.30

The Stripe figure is $29.30 in card fees plus $4.00 for Stripe Invoicing. The differences are small per invoice. Bigger factors are which payment methods your customers will use and which tools you already have. Our guides to Stripe invoices and PayPal invoices go into each option.

How to send a Square invoice, step by step

1. In the Square Dashboard or app, open Invoices and choose to create a new invoice.
2. Add the customer, or create them with an email address so Square can send the invoice.
3. Add line items, either from your item library or as custom amounts, and apply sales tax where it's due.
4. Choose how the customer can pay. Make sure bank transfer (ACH) is switched on if you want the cheaper option to appear.
5. Set the due date, and decide whether to request a deposit or split the invoice into a payment schedule.
6. Add a message, terms or attachments such as a signed estimate.
7. Send it by email or text, or copy the invoice link.

Square records the payment against the invoice automatically, and you can set reminders before and after the due date. If a customer pays you some other way, mark the invoice as paid so your reports stay accurate.

Other costs that affect what you keep

The processing rate isn't the only thing that reduces your take-home amount. Before you decide Square is the cheapest option, look at:

• Payout speed. Standard transfers to your bank are free; instant or same-day transfers carry a fee. Check the current rate in your Square Dashboard before using them routinely.
• Disputes. If a customer disputes a card payment, the money can be held while the dispute is reviewed. Clear invoices, signed estimates and photos of completed work make disputes easier to answer.
• Refunds. Read Square's current refund terms to see how processing fees are treated, so a refunded job doesn't cost more than you expect.
• Paid-plan subscription. If you upgrade for a lower rate, the monthly fee is a cost every month, including slow months.

Square's fees are a deductible business expense in most tax systems. Record each invoice at its full amount as income and the fee as an expense, rather than recording only the net deposit.

When to send your own invoice instead

Square Invoices is a good fit if you already use Square for in-person payments. A separate invoice makes more sense when:

• Commercial customers need a PO number, supplier ID, or a specific layout.
• You want one invoice format for every job, whether paid by Square, bank transfer or check.
• You need line items such as materials, labour hours and sales tax shown in a particular way. The sales tax calculator helps check the figures.

In that case, create the invoice in the invoice generator, download the PDF, and add a Square payment link or checkout link for the amount due. Keep in mind our generator produces the PDF only; it doesn't process the payment or email the invoice, so you send it and Square handles the card payment.

Card acceptance rules, including surcharging, are covered in our guide on how to accept credit card payments.

Next step

Look at the last three months of your Square deposits and work out how much you paid in fees by method. If most of it came from card payments on large invoices, add ACH and bank details to your next invoice and see how many customers switch.