Square • Invoicing
Square Virtual Terminal and Invoicing: Fee Structure for Remote & B2B Billing
📌 Key Takeaways & Executive Summary
- Square Virtual Terminal (entering card details on a web browser) costs 3.5% + $0.15.
- Square Invoices paid online by customers carry a lower rate of 2.9% + $0.30.
- ACH bank transfers paid through Square Invoices cost just 1.0% with a $1.00 minimum fee.
- Square Invoices Plus ($20/month) unlocks auto-billing, custom milestone schedules, and multi-package estimates.
Service providers, contractors, wholesale distributors, and digital consultants frequently bill clients remotely rather than swiping physical cards. Square provides two primary remote payment tools: Virtual Terminal (where the business types the customer’s card info directly into a computer browser) and Square Invoices (where an electronic invoice is emailed to the client). Understanding the fee difference between these two tools is critical.
Rate Difference: Virtual Terminal vs. Invoices
- Virtual Terminal Rate: 3.5% + $0.15 per transaction.
- Square Invoices Online Card Rate: 2.9% + $0.30 per transaction.
- Square Invoices ACH Transfer: 1.0% per transaction (no upper cap, $1.00 minimum).
💡 Why You Should Stop Using Virtual Terminal
On a $1,500 consulting invoice, entering the card through Virtual Terminal costs 3.5% × $1,500 + $0.15 = $52.65. If you email a Square Invoice that the client pays online, it costs 2.9% × $1,500 + $0.30 = $43.80. Sending the invoice saves you $8.85 on every single payment while providing written documentation and customer consent.
Calculate Square Invoice & In-Person Rates
Compare Square online invoice rates against in-person POS swipes with our interactive estimator.
📚 Official Sources & Documentation