Platform Fees

Square UK Fee Calculator

Square UK: 1.75% in-person (chip & PIN, contactless), 2.5% manually keyed, 1.4% + £0.25 online. No monthly fee on the standard plan. Calculator below computes fees per transaction by payment type.

Last verified: 25 April 2026 Source: Square UK Pricing Next review: 25 October 2026

Transaction value —

Square fee —

Total fees —

You receive —

Effective fee % —

£50 in-person card payment

£50 sale · Chip & PIN or contactless

£50 × 1.75% = £0.875 + 20% UK VAT on fees (Square charges UK VAT) = £1.05. Effective rate 2.10%. Net £48.95.

£50 manual entry (over phone)

£50 sale · Manually keyed

£50 × 2.5% = £1.25 + VAT 20% = £1.50. Significantly more than chip & PIN due to higher fraud risk on keyed-in cards.

£50 online (Square Online or invoice)

£50 sale · Online via Square Online

£50 × 1.4% + £0.25 = £0.95. Plus 20% VAT = £1.14. Online rate is between in-person and manual; reflects average online fraud risk.

Square is the simplest in-person payment system for UK micro-merchants and small businesses. Pay-as-you-go, no monthly fee, hardware starts at £19. Calculator above shows the per-transaction cost by payment type.

The three Square rates

In-person (chip & PIN, contactless): 1.75%
Manual entry (keyed): 2.5%
Online (Square Online or invoice): 1.4% + £0.25

The differential reflects fraud risk. Chip & PIN with the card present has the lowest fraud rate. Manual entry has the highest (no PIN, no biometric, just card number). Online is between (3DS authentication available).

Square vs alternatives

Use case	Square	Stripe	SumUp	iZettle (now PayPal Zettle)
In-person card	1.75%	n/a	1.69%	1.75%
Online card	1.4% + £0.25	1.5% + £0.20	2.5%	1.75%
Hardware cost	£19+	n/a	£19+	£29+
Monthly fee	£0	£0	£0	£0
Free e-commerce site	Yes (Square Online)	No	Limited	No
Tap to Pay on iPhone	Yes (UK)	No	Yes (UK)	Yes (UK)

Square’s combination of low rate + free Square Online site + Tap to Pay makes it the best choice for most UK micro-merchants.

Hardware tiers

Square Reader (£19): chip & PIN, contactless, NFC, Apple Pay, Google Pay. Connects to phone via Bluetooth.
Square Terminal (£149): standalone all-in-one — receipts, screen, no phone needed.
Square Register (£599): full POS register with two screens. Restaurant/retail use.

For most micro-merchants, Reader is sufficient. Pair with Tap to Pay on iPhone for backup.

Square Online — the bonus value

Free e-commerce site with Square subscription. Subdomain (yourbiz.square.site) at no cost; custom domain with paid Square Online plan (£12/month). Card processing 1.4% + £0.25 (same as direct Square online rate). Worth using for new businesses testing online presence before committing to Shopify.

Tax treatment

UK self-employment income from Square sales is reported on Self Assessment. Square fees are deductible. Hardware is deductible (typically expensed in year of purchase under simplified expenses, or capital allowance if claiming over time). Square supplies year-end transaction summaries via dashboard.

What this calculator doesn’t model

Hardware purchase cost (£19-£599 one-off)
AMEX premium rates (typically 0.5pp higher)
International card surcharges
Chargeback fees (£15 per dispute)
Add-on services (Square Loyalty, Marketing, Payroll)
Square Card debit card transactions

For broader payment processor comparison, see Stripe UK calculator. For tax treatment, see side hustle tax calculator.

Common mistakes

Manually keying card numbers when you could chip & PIN. 2.5% vs 1.75% is a 43% premium on processing. If a customer’s card is present, ALWAYS chip & PIN. Manual entry is only for genuine over-the-phone or absent-customer scenarios.
Forgetting hardware costs. Square Reader (chip & PIN) is £19. Square Terminal is £149. Square Register is £599. These are one-off costs, not ongoing — but factor into your first-month margin.
Choosing Square over Stripe for purely online businesses. Square’s online rate (1.4% + £0.25) is competitive with Stripe (1.5% + £0.20) but Stripe has more developer integrations, more customisation, more international support. Square is best for businesses with mixed in-person + online needs.
Not enabling Tap to Pay on iPhone. Square supports Tap to Pay on iPhone for UK merchants — turn any iPhone into a contactless reader, no hardware needed. Same 1.75% rate as physical reader.
Skipping the free Square Online plan. Square Online has a free tier (subdomain hosting, basic e-commerce). Useful for testing before committing to Shopify subscription costs.

What this calculator doesn't cover

Doesn’t include hardware purchase costs (Reader £19, Terminal £149, Register £599).
Doesn’t model Square’s small-merchant programs (no special UK tier currently).
Doesn’t include AMEX premium rates (typically 0.5pp higher).
Doesn’t account for international card processing surcharges.
Doesn’t include chargeback handling fees (£15 per dispute).
Doesn’t model Square Loyalty, Marketing, or Payroll add-on subscriptions.

Frequently asked questions

Square vs Stripe for UK businesses?

Square wins for in-person sales (built-in chip & PIN hardware, simpler setup). Stripe wins for online-only (more integrations, customisation, international). For mixed in-person + online, Square is usually simpler. For pure e-commerce, Stripe edges ahead.

Are Square fees tax-deductible?

Yes — fully deductible against UK trading income. Card processing is a business expense. See side hustle tax calculator.

Does Square charge UK VAT on fees?

Card processing fees are typically VAT-exempt under financial services rules. Hardware purchases (Reader, Terminal) include 20% VAT. Subscription products like Square for Restaurants Plus include UK VAT.

How long do payouts take?

Standard: next business day for transactions before 5pm GMT. Instant Transfer: same day for 1.75% fee (rarely worth it). Compared to Stripe (2 business days typical), Square is faster for cash-flow.

Can I use Square without a contract?

Yes — pay-as-you-go. No monthly fee on the standard plan. No long-term contract. You only pay when you transact. The £19 Reader is a one-off purchase.

What about Square Card vs Square Reader?

Square Card is a free business debit card linked to your Square balance — instant access to sales without waiting for payouts. Square Reader is the physical chip & PIN device for taking payments. Both are useful; neither is required.

About this calculator. Maintained by Jordan — a UK seller and creator who actually uses these platforms (Etsy, eBay, Vinted, DistroKid). Built to be accurate, mobile-fast, and honest about its limits. Spot a bug? Email hello@payoutmath.co.uk.