How payments work in Square
Square is both the point-of-sale software and the payment processor. One company handles your sales screen, your card reader and your deposits. A payment processor is the company that moves card money from your customer to your bank.
That is convenient. Your Square reports and deposit records are where you see what you paid.
What you can do instead
- Add up the fees you paid over a month and divide by your card sales to get your effective rate.
- If you also sell online or send invoices, check whether those payments run through the same system.
- Ask us to read your numbers with you. A person will tell you what they mean, even if the answer is to stay where you are.
- Treat a change of point-of-sale as a separate decision. There is no pressure to switch software.
Questions merchants ask
How do I compare what I pay with another option?
Open your monthly processing statement and add up every fee. Divide that total by your card sales for the month. The result is your effective rate, the real percentage you pay after every fee. Our free statement review walks you through it.
Can I use a Square reader with another processor?
We have not found a supported way to do that. Ask us and we will check your setup.
Who handles chargebacks?
Disputes go to the company that processes your payments, which with Square is Square. Keep receipts and customer messages, and respond by the date on the dispute notice.
What if my payment account is held or closed?
Because one company runs both the software and the payments, a problem with the payment account can affect your card sales. Keep your own sales records and ask for the reason in writing.
See what you pay, for free
A person reads your statement with you and tells you what each fee means and whether a different processor is even possible with Square. There is no pressure to switch.