The Difference Between Square Fees and Fattmerchant Fees

Square Fees vs Fattmerchant Payment Processing Fees Compare

From collecting payments in-store to offering virtual, contactless options, choosing the right payment processor with the best cost is critical for the success of your business. With hundreds of merchant services providers in the U.S. offering a wide variety of credit card processing services, it’s easy for small businesses to get overwhelmed with the expanse of options, offerings, and pricing.

To help simplify the process, we’ve gone ahead and compared Fattmerchant’s products and services with that of one of our industry’s well-known competitors, Square. Both Fattmerchant and Square offer top-rated payment options, but which one is the better fit for your business? Let’s break down the numbers when it comes to Fattmerchant fees vs. Square fees.

What Does Square Have to Offer?

Launched in 2010 with the Square Reader, Square offers a software platform best suited for start-up and micro-businesses. The company has continued to expand its easy to use payment products and software as they look to remain competitive in the marketplace and help scale small businesses. As a result, they offer a variety of plans and products, including an array of flat-rate pricing. 

Square allows you to quickly pick a starting point to immediately open a free account. It is important to note that Square is simply a third party payment processor and does not offer a traditional merchant services account. That means that while they do have restrictions for certain business types in using their services, they are not a traditional merchant services provider and have no risk review or underwriting process for businesses to go through to open an account.

How Much Are the Square Fees?

While opening an account and starting to process payments is free, there are several Square fees that also come into play as your business starts to need additional options and services. 

Square offers a flat rate on each transaction a small business processes regardless of whether it’s a debit or credit card. For transactions that are processed using an in-person POS or card reader when a customer has swiped, dipped, or tapped their card they charge 2.6% + $.10 per swipe. However, this does not account for rates they offer when using specific Square products as the flat rate will vary based on how you collect your customer’s payment. 

Additionally, Square offers other transaction rate options based on what Square product you’re using. For example:

  • 2.5% + $0.15 per swiped, dipped, or tapped transaction using a Square Register
  • 2.6% + $0.15 per swiped, dipped, or tapped transaction using a Square Terminal
  • 2.6% + $0.10 per swiped, dipped, or tapped transaction using Square Appointments (or 2.5% + $0.10 for Teams)

That is not to mention their different rates for certain card-not-present transactions where you need to collect payment by phone, through a website, or virtually through an online invoice. In these cases, the rate can jump up to 3.5% + $0.15 per transaction.

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Are there any other Square Fees I need to know?

While your business may start off with just the basics, over time the need for more robust software solutions will increase your monthly cost. This is especially true if you fall in the retail, restaurant, and professional services space as Square offers specialized plans for those industries starting at $50-$60 per month. If your business begins to use additional registers, another $20-$40 monthly fee per additional device is added to the service.

Additionally, their limited chargeback protection policy can cost your business, in the long run, the more you transact. While Square does not charge any chargeback fees, their lack of an underwriting process means your Square account has an increased risk of sudden account holds and terminations. Any sudden changes in patterns or large spikes in transaction amounts may be seen as suspicious, resulting in a freeze while they review your account. This is something businesses can ill afford at any point in time. 

Here’s a Quick Summary of Square’s Benefits and Limitations:

The Pros of Choosing Square

  • Quick to start and easy to use payment processing 
  • Fraud and security protection tools
  • Online and mobile dashboard
  • Modern payments technology
  • Immediate Access

The Cons of Choosing Square

  • Limited to no ACH payment processing
  • No PCI Compliance Support or assistance
  • Primarily email customer service 
  • Limited terminal and POS options
  • Varied flat-rate transaction fees as high as 3.5% + $0.15 per transaction

Fattmerchant vs Square Fees Scenario 1: Card Present  

Let’s say your business processes $18,000 CP payments per month with four $150 sales purchased using a rewards debit card per day for thirty days. How much could each pricing model’s credit card processing costs affect you?

Cost of Processing $18,000 per Month

4 sales per day x $150 per sale x 30 days = $18,000/month


Fattmerchant Fees*Square Fees

Fattmerchant vs Square Fees Scenario 2: Card-not-Present

Say you take payments through online invoices or over the phone. Your business keys in four $150 sales per day for a total of $18,000 per month in CNP processing. How much can this cost your business?

Cost of Processing $18,000 per Month

4 sales per day x $150 per sale x 30 days = $18,000/month


Fattmerchant Fees*Square Fees


As you can see, with per-transaction costs that can go as high as 3.5% + $0.15, you could be paying up 60% more in Square CNP transaction fees per month than if you processed with Fattmerchant.

While most of Square’s merchant services offerings are very similar to Fattmerchant, their additional fees and status as a third party payment processing provider can quickly make them a more expensive and somewhat riskier option over time, especially as your business begins to grow.

*Interchange is set by the card associations like Visa and Mastercard and is a required cost for taking credit cards. The exact interchange rate for each transaction is affected by dozens of factors. Interchange can be less than 1% for certain in-person debit cards and over 2.7% for some keyed-in rewards credit cards. For these examples, we averaged a number of common interchange rates and applied 1.65% for card-present transactions and 2.15% for card-not-present purchases to showcase.

Fattmerchant, The Way Payment Processing Should be: Simple

While Square claims other Bank and Payment Processors are unable to include similar offerings, this couldn’t be further from the truth. Ranked as one of the best merchant services companies nationally, Fattmerchant is a subscription-based merchant service provider with total transparency built into its model. All merchants have access to direct cost payment processing with 0% markups, no contracts, and no hidden fees.

Fattmerchant treats our members like family. Whenever you call in with a question, issue, or just to chat – a real person answers the phone every time (no automated calls). This is the perk of working with a more customer-centric company.

With Fattmerchant, someone is ready to help answer the phone every time. We eat, sleep, and breathe payments – so rest easy knowing that you’re getting the kind of white-glove customer service you deserve. 

Fattmerchant is committed to never profiting off your company’s success

Here’s a quick summary of Fattmerchant processing fees and why we are the best merchant services provider for your business: 

  • No contract
  • 0% markup
  • No hidden fees
  • Quick setup
  • Recurring billing
  • Easy to read statement
  • 24/7 live customer service
  • Flat monthly subscription (save up to 40% versus traditional processors)
  • Next day funding for approved businesses
  • POS, eCommerce, mobile and virtual terminal solutions
  • Can integrate with most already established POS systems

Each business is unique, and it pays to understand exactly what will work best for you as you explore your options. At Fattmerchant, we provide easy to use yet highly effective payment solutions to businesses of all sizes.

To learn more about our top-ranked merchant services and how they can help grow your business, feel free to reach out to us today. We will be happy to answer any questions you have and help you obtain the right payment processing solution for your needs.

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