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The merchant covers the fee.
You pay a simple flat rate of 2.6% + 15¢ on all transactions.
Keyed-in and online payments are 3.3% + 30¢ per transaction.
See squareup.com for detailed Square pricing.
Your card customers cover the fees, and you pay zero transaction fees.
Your card customers cover the 4% fee, and customers who pay with cash get a 4% cash discount.