Square charges a flat 1.75% per in-person transaction with no monthly fees, no contracts, and hardware starting at just £19 + VAT. It’s one of the simplest payment processors available to UK small businesses — and one of the most popular, processing over £100 billion in payments worldwide each year.
Our card machine transaction fees guide has the most current pricing data.
We rate Square 8.2 out of 10. The free plan, transparent pricing, and strong POS software make it the best all-round choice for small businesses that want to start taking card payments quickly. Where it falls short: no third-party processor support, and phone support is limited to weekday business hours.
This review covers Square’s UK pricing, all six hardware devices, POS software features, and how it compares to SumUp, Dojo, and other UK alternatives.
See our Dojo vs Worldpay comparison for a side-by-side breakdown of pricing and features.
Square Pricing and Fees
Square charges 1.75% per in-person card payment with no monthly fees on the Free plan — one of the simplest pricing structures in UK payments.
Square keeps its fee structure deliberately simple. There are no setup fees, no minimum transaction requirements, and no long-term contracts. You pay per transaction, and that’s it on the Free plan.
Transaction Fees
| Payment Type | Fee |
|---|---|
| In-person (chip & PIN, contactless, Apple/Google Pay) | 1.75% |
| Online (UK cards) | 1.4% + £0.25 |
| Online (non-UK cards) | 2.5% + £0.25 |
| Manually entered / phone orders | 2.5% |
| Invoices | 2.5% |
| Clearpay (BNPL) | 6% + £0.30 |
| Chargebacks | £0 (free) |
| Instant transfers | 1.5% fee |
Standard payouts arrive the next working day at no charge. If you need funds faster, instant transfers cost 1.5%. Refunds are free to process, though Square doesn’t return the original transaction fee.
Monthly Plans
| Plan | Monthly Cost | What You Get |
|---|---|---|
| Free | £0/month | POS app, basic reporting, inventory, invoicing, payment links |
| Plus | From £29/month | Industry-specific POS (Retail, Restaurants, or Appointments), advanced inventory, kitchen displays |
| Premium | Custom pricing | For businesses processing £200K+/year — tailored rates and hardware discounts |
The Free plan is genuinely functional — not a stripped-down demo. You get the full POS app, sales reporting, customer directory, and digital receipts. Most micro-businesses and market traders won’t need to upgrade.
The Plus plan is worth considering if you run a sit-down restaurant (table management, kitchen display system) or a retail shop with complex inventory needs (purchase orders, vendor management). Square for Appointments on Plus adds no-show protection and automated reminders.
Square also offers an online store with separate pricing: Free (basic, no custom domain), Plus at £20/month, and Premium at £64/month (which drops online transaction fees to 1.4% + £0.15 for UK cards).
Square Hardware
Square sells six hardware devices from £19 to £699, including the 2025-launched Handheld with built-in barcode scanner for mobile businesses.
| Device | Price (+ VAT) | Best For | Key Feature |
|---|---|---|---|
| Square Reader (also available as an EPOS system) (2nd gen) | £19 | Market stalls, mobile sellers | Pairs with smartphone, offline mode |
| Square Stand | £99 | iPad-based countertop POS | Built-in card reader slot, charges iPad |
| Square Kiosk | £99 | Self-service ordering | Customer-facing iPad stand |
| Square Terminal | £149 | Small retail, coffee shops | Standalone touchscreen with receipt printer |
| Square Handheld | £169 | Table-side service, deliveries | Built-in barcode scanner, slim design (2025) |
| Square Register (2nd gen) | £699 | High-volume countertop retail | Dual screens with customer display |
The Square Reader at £19 + VAT is the cheapest entry point. It connects to your phone via Bluetooth and accepts chip & PIN, contactless, and mobile wallets. Customers enter their PIN on your phone screen — there’s no separate PIN pad. It weighs under 30g and fits in a pocket. Offline mode stores transactions when you lose signal and syncs later.
The Square Terminal at £149 + VAT is the best all-round standalone device. It has a touchscreen, built-in receipt printer, and runs the full POS app without needing a phone. Connects via WiFi or Ethernet. Battery lasts 7-8 hours.
The Square Handheld launched in 2025 at £169 + VAT. It’s slimmer and lighter than the Terminal, with a built-in barcode scanner — ideal for restaurants doing table-side ordering or retailers doing stocktakes. The trade-off: WiFi only (no Ethernet), and no built-in printer. Offline mode compensates for the WiFi dependency.
The Square Register at £699 + VAT is the full countertop system with dual screens — one for you, one facing the customer. Best for high-volume retail or hospitality businesses that need a permanent checkout station.
All Square hardware comes with end-to-end encryption and PCI-DSS Level 1 compliance as standard. There are no ongoing hardware fees — you buy the device outright.
POS Software and Features
Square’s free POS app includes inventory management, sales reporting, customer directory, and offline payments — more generous than any competitor’s free tier.
Our Fiserv review breaks down what you get and what it actually costs.
Square’s POS software is where the product genuinely outperforms most competitors. The free tier includes features that SumUp and PayPal POS (formerly Zettle) charge extra for: real-time inventory tracking, product categories with variations, automated stock alerts, and a customer directory that logs purchase history.
Industry-Specific Plans
Square for Retail (Plus, from £29/month) adds purchase orders, vendor management, barcode label printing, and advanced inventory reports. If you’re running a shop with 50+ SKUs, the upgrade pays for itself in time saved on stock management.
Square for Restaurants (Plus, from £29/month) adds table management, coursing, kitchen display system (KDS), and menu modifier groups. The free tier already includes basic table management — the upgrade is for sit-down restaurants needing course-by-course service.
Square for Appointments (Plus, from £29/month) adds automated booking reminders, no-show protection fees, and a client-facing booking website. Salons, barbers, personal trainers, and consultants benefit most from this plan.
One limitation: you can’t mix plans. A café that also takes bookings for events has to choose between Restaurants and Appointments. Competitors like Clover are more flexible on this point.
Integrations
Square connects with over 100 third-party apps including Xero, QuickBooks, WooCommerce, Wix, and DoorDash. The API is well-documented and free to use, which is why many UK developers build on Square’s platform. You can also connect to Instagram and Facebook for social selling without building a separate online store.
The catch: you cannot use a third-party payment processor. Every transaction must go through Square. If you want payment processor flexibility, look at Stripe or a traditional merchant account instead.
Online Payments and Ecommerce
Square offers a free online store with payment gateway, or integrates with existing websites — online fees are 1.4% + £0.25 for UK cards.
Square’s online payment gateway works as a standalone checkout or integrates with WordPress, WooCommerce, Wix, and Shopify. Online transaction fees are 1.4% + £0.25 for UK cards and 2.5% + £0.25 for international cards.
The built-in online store has three tiers: Free (basic store, Square-branded domain), Plus at £20/month (custom domain, full branding), and Premium at £64/month (reduced fees at 1.4% + £0.15, advanced analytics). Inventory syncs automatically between your physical and online stores.
Invoicing is free to create and send — Square only charges the standard online transaction fee when customers pay. Payment links let you collect money via email, text, or social media without building a full online store. The virtual terminal handles phone orders at 2.5% per transaction.
Security and Support
Square includes PCI-DSS Level 1 compliance, machine-learning fraud detection, and free chargeback protection on every plan at no extra cost.
Every Square transaction is protected by end-to-end encryption and PCI-DSS Level 1 compliance — the highest level of payment security certification. Businesses don’t need to handle compliance themselves.
Square’s Risk Manager uses machine learning to flag suspicious transactions automatically. It checks transaction patterns, addresses, and authentication signals before processing. Chargebacks are handled for free — Square doesn’t charge a dispute fee, which is unusual. Most traditional merchant account providers charge £15-25 per chargeback.
Support is available by phone and email Monday to Friday, 9am-5pm. There’s no 24/7 live chat, which is a genuine gap for businesses operating outside standard hours. The online help centre and community forum are comprehensive, but they’re no substitute for live help when a terminal stops working on a Saturday evening.
Who Is Square Best For?
Square is best for small businesses and sole traders who want simple, transparent card payments without monthly fees or long-term contracts.
Best fit: Market traders, pop-up shops, coffee shops, small retailers, restaurants, salons, and mobile service businesses. Businesses processing under £200,000/year that want pay-as-you-go simplicity.
Not ideal for: High-volume businesses that could negotiate better rates with a traditional merchant account. Businesses needing 24/7 support. Multi-service businesses that need to combine retail, appointments, and restaurant features in one plan. Businesses wanting payment processor flexibility.
If you primarily need a low-cost card reader with no monthly commitment, Square and SumUp are the two main options. SumUp’s in-person rate is slightly lower at 1.69%, but Square’s free POS software is significantly more capable.
Pros and Cons
Square offers the strongest free POS software in the UK but locks you into its payment processor with no third-party alternative.
Square vs Alternatives
Square’s 1.75% in-person rate matches PayPal POS and undercuts Dojo, while SumUp’s 1.69% is the cheapest flat-rate option in the UK market.
| Provider | In-Person Fee | Monthly Fee | Cheapest Hardware | Best For |
|---|---|---|---|---|
| Square | 1.75% | £0 | £19 + VAT | Best free POS software |
| SumUp | 1.69% | £0 | £29 + VAT | Cheapest per-transaction rate |
| Dojo | From 1.4% | From £20 | Included in plan | Best for restaurants |
| Clover | From 1.4% | From £25 | From £99 | Most flexible POS |
| takepayments | From 0.4% | From £17 | Included in plan | Best rates for high volume |
Read our full SumUp vs Square comparison for a detailed head-to-head. For a broader view of all available options, see our guide to the best card machines for small business.
Our Verdict
We rate Square 8.2/10 — the best overall PAYG card payment solution for UK small businesses that want simplicity and strong free software.
Square offers the best combination of transparent pricing and free POS software for UK small businesses. The 1.75% flat rate, no monthly fees, and six hardware options from £19 make it the easiest way to start taking card payments. Main drawbacks: processor lock-in and limited support hours.
Square’s combination of transparent pricing, capable free software, and flexible hardware makes it the strongest all-round option for UK small businesses taking card payments. The 1.75% flat rate is competitive (though SumUp undercuts it at 1.69%), and the free POS app is genuinely best-in-class.
The main drawbacks — processor lock-in, limited support hours, and plan rigidity — are trade-offs most small businesses can live with. If you’re processing under £200,000/year and want to start taking payments with minimal friction, Square is the provider to beat.
For businesses processing higher volumes, a traditional merchant account from Worldpay or takepayments may offer better per-transaction rates. And if you need the cheapest possible hardware, compare card machine prices here.
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