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Square Rates & Passing the Fee

Updated: October 23, 2026

Purpose

This page explains the two Square rates you can offer, how to request custom pricing, and the ways a merchant can pass processing fees on to customers.

1. Your Two Sign-Up Links

Every trainer and rep gets two Square sign-up links. The link you send decides the merchant's processing rate.

Link

Processing Rate

4% Flat Rate

4% on card payments

Rack Rate

2.6% + $0.15 per transaction

Merchants pay only their processing rate and their software plan. There are no annual, PCI, statement or security fees.

Hardware and software plan pricing is separate from the processing rate. See Square Pricing in the course for plans and hardware.

2. Custom Pricing

Custom pricing is anything other than the Rack Rate or the 4% Flat Rate. It requires at least $250,000 in annual processing volume.

  1. Board the merchant at the Rack Rate or 4% Flat Rate first. This creates their merchant token.
  2. Email Tyisha (tyisha@equippaymentsolutions.com) and cc Angela (angela@equippaymentsolutions.com) with: business name, Square account email, monthly processing volume (GPV), average ticket, card-present vs. card-not-present split, and requested pricing (for IC+, note daily or monthly billing).
  3. Square Finance sends the pricing addendum to the merchant to sign. You'll be copied.
  4. Pricing updates within 2 to 3 business days after the merchant signs.

3. Passing the Fee with Square

These options let a merchant offset their processing cost. They're set up in the merchant's Square Dashboard, separate from the processing rate, so make sure the rate you set matches the option the merchant chooses.

Service Charge (Recommended)

  • A fee applied to all payment types, similar to our supplemental fee. Square's and Equip's recommended primary option.
  • Setup guide 
  • 1-minute video

Cash Discount

  • For a merchant signed up at a 4% cash discount: the merchant raises their prices about 4.17%, then applies a 4% discount on cash transactions. The discount can be applied manually at checkout. Don't forget to help the merchant set up the discount feature.
  • Setup guide
  • Video (start at 0:35)
  • Discount hot button

Surcharging

  • A surcharge on eligible card transactions, capped at 3%. A 3% surcharge requires a pricing addendum from Square. Debit cards can't be surcharged, so the merchant absorbs that cost.
  • Setup guide

Not sure which option fits? Talk to your trainer before signing up a merchant on any pricing or fee option you don't fully understand, especially surcharging.

4. Quick Answers

  • Which link do I send? The one that matches the rate you quoted. The link sets the rate.
  • Does the merchant want a lower rate? Only with $250K+ in annual volume, through the custom pricing steps above.
  • Online orders? See Websites & Online Selling for how each fee option works online.

Questions?

Start with your trainer. For pricing questions, email Tyisha (tyisha@equippaymentsolutions.com).