⚠ RBA Surcharge Ban: From 1 October 2026, surcharging on cards will be banned. Your merchant rate will hit your margin directly — choose wisely.

Is Square Really the Best Deal for Your Business?

Square charges a flat 1.6% on every card transaction — with no negotiation and no volume discounts. We compare Square to alternatives so you can make an informed decision.

Get a Free Rate Comparison See the Comparison Table
1.6%Square flat rate
NoneVolume discounts
NoneRate negotiation
NoLock-in contract

Square Fees Explained

What Square actually charges Australian merchants in 2026.

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1.6% Flat Rate — All Cards

Square charges 1.6% on every transaction regardless of card type — Visa, Mastercard, eftpos or Amex. No blended rate. No card-type differentiation.

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Hardware — Purchase Required

No terminal rental fee but you purchase or lease Square hardware. Square Reader, Square Terminal and Square Register are purchased outright. Hardware is not transferable to other providers.

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Software Subscriptions

Base plan is $0/month. Square for Restaurants: $69/month. Square for Retail: $109/month. Counter Service Restaurant: $149/month. These are on top of the 1.6% transaction rate.

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Chargeback Fee

$15 per dispute. This is charged regardless of whether the chargeback is won or lost.

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Zero Negotiation — At Any Volume

Square does not negotiate rates. Whether you process $5,000/month or $500,000/month, the rate remains 1.6%. There is no volume discount pathway.

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No Blended Rate Structure

Blended rates distinguish between low-cost eftpos transactions and higher-cost credit cards. Square doesn't — all cards attract the same 1.6%, which often means eftpos transactions are overpriced.

Square vs Alternatives — 2026

How Square compares to other payment providers in Australia.

Provider Rate Terminal Fee Monthly Fee Lock-in Negotiable Best For
Square 1.6% flat $0 (software subs extra) $0 base No No Low volume / side hustle
Tyro 1.2–1.8% blended $29–$49/mth $0 3yr common Rarely Mid-size retail
Zeller 1.4% flat $0 $0 No No Small café / retail
0.85–1.4% negotiated $0 $0 No Yes — always Any volume, 500+ POS

When Square Makes Sense

Very low monthly volume (under $5K)

At low volumes the simplicity of Square outweighs the cost of switching.

Starting from scratch, no existing POS

Square's all-in-one hardware and software ecosystem removes setup complexity for new businesses.

Want simplicity over savings

If you don't want to negotiate and are comfortable paying more per transaction for zero admin, Square delivers that.

When Square Doesn't Make Sense

Monthly card volume over $20K

At $20K/month, 1.6% = $320/month in fees. A negotiated rate of 0.95% = $190/month — a $130/month difference that compounds.

You have an existing POS system

Square requires its own ecosystem. If you already run a specialist POS for hospitality, retail or health, Square won't integrate.

Post-ban: every basis point hits your margin

From 1 October 2026, the 1.6% you were surcharging comes directly off your margin. At $100K/month that is $1,600/month. A negotiated rate of 1.0% saves $600/month.

Square Fees — FAQ

What is Square's merchant fee in Australia?
Square charges a flat 1.6% on all card types — Visa, Mastercard, eftpos and Amex. There are no volume discounts. The rate is the same whether you process $1,000/month or $1,000,000/month.
Does Square charge a monthly fee?
No monthly fee on the base plan. Square for Restaurants ($69/mth) and Square for Retail ($109/mth) have subscription fees on top of the 1.6% transaction rate.
Can I negotiate a lower rate with Square?
No. Square does not negotiate rates for any merchant regardless of volume. The rate is fixed at 1.6% for all merchants.
Is there a Square alternative with lower fees?
Yes. Providers like UrPay offer negotiated blended rates from 0.85% for merchants with consistent card volume. The right rate depends on your monthly volume and card mix.
What happens to Square merchants after the RBA surcharge ban?
The 1.6% cost you currently pass on as a surcharge will need to come out of your margin from 1 October 2026. At $100,000/month card volume that is $1,600/month hitting your P&L directly.
Can I keep my POS and switch payment providers?
In most cases yes. UrPay integrates with 500+ POS systems. You keep your existing POS and switch the payment layer only — no new hardware or software ecosystem required.

See If You Can Beat Your Square Rate

Free comparison in 24hrs. Your volume. Your card mix. Your actual savings.

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