Square Card Reader Fees UK 2026: 1.75% Rate, Hardware and Payout

LAST REVIEWED 2026-09-06

What are Square's card reader fees in the UK?

Square charges a flat rate of 1.75% for every in-person card transaction made through its card readers. There is no monthly fee and no minimum usage requirement. This rate applies to all major debit and credit cards, including contactless payments.

The 1.75% rate is published on Square's UK pricing page as of 2026-09-06. The rate is deducted automatically before funds are settled into the bank account.

Square does not charge extra for different card types, so the same 1.75% applies whether the customer uses a Visa debit, Mastercard credit, or an American Express. This simplicity is a key feature for small businesses that want predictable costs.

Compare this with SumUp's 1.69% rate, which is slightly lower, and Zettle's 1.75% which matches Square. However, Zettle charges from £29 for hardware, while Square's hardware cost is not published. The table below shows these comparisons.

Is there a monthly fee for Square card readers?

No, Square does not charge a monthly fee for its card reader service. The pricing page states a monthly fee of £0. This makes Square a cost-effective option for businesses with low or variable transaction volumes.

Unlike traditional providers such as Barclaycard, which charges £0 for the first 12 months then £18 + VAT thereafter, Square's no-monthly-fee policy is permanent. Similarly, Tide charges £2.99 + VAT per month, and Worldpay charges £20.00 per terminal monthly.

Always check the total cost of ownership, including hardware and any hidden charges, as Square's hardware cost is not published. See the table below for a full comparison.

How fast does Square pay out funds?

Square does not publish its standard payout time on its UK pricing page. The settlement column in the table above shows 'not published' for Square. This means businesses cannot rely on a specific timeline without contacting Square or checking its help centre.

In contrast, SumUp offers next-day settlement, Zettle settles within minutes to a PayPal Business account, and Tide settles the next business day. Barclaycard and takepayments also offer next-day or next-working-day settlement. Worldpay settles within 24 hours.

For a business that needs daily cash flow, a provider with a published next-day settlement may be more suitable. Square's lack of published payout times could be a drawback for those who require predictable cash flow.

Square does offer an instant transfer feature for a fee, but the fee amount is not published on the pricing page. Businesses should verify current payout times and any instant transfer costs directly with Square before committing.

What are Square's contract terms?

Square operates on a no-contract basis, meaning there is no minimum term or exit fee. The pricing page states 'no contract' for Square. This flexibility is ideal for startups or seasonal businesses that do not want to be locked into a long-term agreement.

Traditional providers like takepayments require a 12-month contract, and Barclaycard requires an 18-month contract. These contracts may include early termination fees, which can be costly if a business wants to switch providers.

With Square, a business can stop using the service at any time without penalty. However, it is important to note that Square may still hold funds for a period after termination to cover chargebacks or refunds, as per its terms and conditions.

For businesses that value flexibility, Square's no-contract model is a significant advantage. But always read the full terms to understand any potential holds or other conditions that may apply.

Is Square regulated by the FCA?

Square is authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations. This means it must comply with safeguarding requirements for customer funds and follow strict rules on transparency and dispute resolution.

As an FCA-regulated entity, Square is required to keep client funds separate from its own operating funds. This provides a layer of protection for businesses in the event of Square's insolvency.

However, being FCA-regulated does not mean that Square is a bank, and funds held by Square are not covered by the Financial Services Compensation Scheme (FSCS). Businesses should be aware of this distinction when choosing a payment provider.

Square's regulatory status is a positive indicator of its legitimacy and operational standards. Businesses can verify Square's FCA registration number on the FCA register to confirm its authorisation.

Who is Square best suited for?

Square is well-suited for small businesses, sole traders, and pop-up shops that need a simple, low-cost card payment solution without long-term commitments. Its flat 1.75% rate and no monthly fee make it attractive for low-volume sellers.

Businesses that process high volumes may find lower rates elsewhere, such as SumUp's 1.69% or customised rates from Barclaycard. However, those customised rates often come with monthly fees and contracts, which can offset savings.

Square's hardware cost is not published, so businesses must factor in the initial outlay. Zettle offers hardware from £29, while Tide offers from £11 + VAT. Square's actual hardware prices may vary, so it is essential to check the Square website for current costs.

For businesses that need instant access to funds, Square's payout times are not published, which may be a concern. Providers like Zettle offer faster settlement. Ultimately, the choice depends on individual business needs and priorities.

How does Square compare with other providers on fees?

In the table above, Square's 1.75% in-person rate is identical to Zettle's, but higher than SumUp's 1.69%. Many traditional providers like Barclaycard and Worldpay do not publish their rates, making direct comparison difficult.

However, SumUp also has no monthly fee and no contract, similar to Square. Zettle matches Square's rate but charges from £29 for hardware, while Square's hardware cost is not published. If Square's hardware is more expensive, Zettle might be more cost-effective overall.

Businesses should consider the total cost, including hardware, monthly fees, and transaction rates, to determine the best value. The table provides a snapshot, but always check the latest pricing on each provider's website.

What are the hidden costs of Square card readers?

Square's pricing page does not list any hidden costs, but businesses should be aware of potential charges such as chargeback fees, which are not published. The 1.75% rate is the primary transaction fee, but other fees may apply.

For example, Square may charge a fee for instant transfers, but the amount is not published. Businesses that need immediate access to funds should check the current instant transfer fee in the Square dashboard.

There is no monthly fee, but if a business stops using the reader, there are no ongoing costs. However, if a business wants to cancel, there is no contract, so no exit fees. But any outstanding chargebacks or refunds may be deducted from the settlement balance.

Always read Square's terms of service for a full list of fees. The table above shows that Square's hardware cost is not published, so factor in the cost of the reader when budgeting.

How to set up a Square card reader in the UK?

Setting up a Square card reader involves creating an account on Square's website, ordering a reader (hardware cost not published), and downloading the Square app. The process is straightforward and can be completed in minutes.

Once the reader is connected via Bluetooth to a smartphone or tablet, businesses can start accepting payments. The 1.75% fee applies automatically to each transaction, and funds are settled to the linked bank account.

Square does not require a contract, so there is no lengthy approval process. However, Square may perform a credit check when setting up the account, which is standard for payment providers.

For businesses that want to accept payments without a physical reader, Square also offers a Tap to Pay on Phone feature, which uses the phone's NFC. This is covered in the Tap to Pay on Phone (SoftPOS) in the UK: 1.69% Rates in 2026 guide.

What are the alternatives to Square for UK businesses?

Several alternatives to Square exist in the UK, each with different fee structures. SumUp offers a lower rate of 1.69% with no monthly fee and no contract, making it a strong competitor. Zettle matches Square's 1.75% but offers faster settlement.

Traditional providers like Barclaycard and Worldpay offer customised rates but often require contracts and monthly fees. For example, Barclaycard has an 18-month contract and a monthly fee of £18 after the first 12 months. Worldpay charges £20.00 per terminal monthly.

Tide offers a card reader with a monthly fee of £2.99 + VAT and hardware from £11 + VAT, but its transaction rate is not published. takepayments requires a 12-month contract.

For a comprehensive comparison, see the UK Card Machine Providers Compared 2026: 10 Providers With Published Rates guide. Also, for no-monthly-fee options, check Card Readers With No Monthly Fee: UK Options and What They Really Cost.

Glossary: card payment terms explained

Interchange fee: A fee paid by the merchant's bank to the cardholder's bank for processing a card transaction. It is a component of the overall merchant service charge.

Merchant service charge (MSC): The total fee a payment provider charges for processing card transactions, typically a percentage of the transaction value plus a fixed fee.

Settlement: The process of transferring funds from a card transaction to the merchant's bank account. Settlement times vary by provider.

Chargeback: A dispute initiated by a cardholder that results in the reversal of a transaction. Merchants may incur fees for chargebacks.

PCI DSS: Payment Card Industry Data Security Standard. A set of security requirements for businesses that handle card payments to reduce fraud.

SoftPOS: Software point of sale. Technology that allows a smartphone to accept contactless payments without a separate card reader.

Checklist: what to check on a fee statement or contract

• Check the published transaction rate on Square's pricing page for the current 1.75% fee.
• Verify that there is no monthly fee by reviewing the pricing page or contract terms.
• Confirm the hardware cost before purchasing, as Square does not publish it.
• Ask Square for the standard payout time, as it is not published.
• Review the terms for any hidden fees such as chargeback or instant transfer charges.
• Compare Square's total cost with other providers using the table above.

Each item above maps to a line that must appear in the PSR summary box or the contract schedule, so a missing entry is itself a question for the provider.

Frequently asked questions

What is the Square fee in the UK?

Square charges a flat rate of 1.75% for every in-person card transaction in the UK. This rate applies to all major debit and credit cards, including contactless payments. There is no monthly fee and no contract, making it a simple and predictable pricing structure for small businesses. The rate is published on Square's UK pricing page as of 2026-09-06. This rate is competitive with other providers like Zettle, which also charges 1.75%, but higher than SumUp's 1.69%.

Is there a monthly fee?

No, Square does not charge a monthly fee for its card reader service. The pricing page states a monthly fee of £0. This is a significant advantage over traditional providers like Barclaycard, which charges £0 for the first 12 months but then £18 + VAT per month thereafter. Worldpay charges £20.00 per terminal monthly, and Tide charges £2.99 + VAT per month. Square's no-monthly-fee model is permanent, making it a cost-effective option for businesses with low or variable transaction volumes. Always check for any other hidden charges that might apply.

How fast is payout?

Square does not publish its standard payout time on its UK pricing page. The settlement column in the table above shows 'not published' for Square. This means businesses cannot rely on a specific timeline without contacting Square or checking its help centre. In contrast, SumUp offers next-day settlement, Zettle settles within minutes to a PayPal Business account, and Tide settles the next business day. If fast access to funds is critical, consider providers with published settlement times. Square does offer an instant transfer feature, but the fee is not published, so check the current cost in the dashboard.

Is Square FCA regulated?

Yes, Square is authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations. This means it must comply with safeguarding requirements for customer funds and follow strict rules on transparency and dispute resolution. Being FCA-regulated provides a layer of protection for businesses, as Square is required to keep client funds separate from its own operating funds. However, funds held by Square are not covered by the Financial Services Compensation Scheme (FSCS), as Square is not a bank. Businesses can verify Square's FCA registration on the FCA register to confirm its authorisation.

Does Square offer instant transfer?

Yes, Square offers an instant transfer feature that allows businesses to access their funds immediately for a fee. However, the fee amount is not published on the pricing page. To use instant transfer, businesses must have a Square account and a linked debit card. The fee is typically a percentage of the transfer amount, but the exact rate may vary. Businesses should check the current instant transfer fee in the Square dashboard before using the feature. Standard payouts, which are not published, may take longer, so instant transfer can be a useful option for urgent cash flow needs.