What Square Charges When a Gift Card Is Used
Square's own pricing page says no extra fee applies when a gift card is redeemed. Here is how that fits its plans and payment types.
A customer hands over a gift card instead of a card. Does that tap or swipe cost you anything extra? Square's own pricing page answers that directly, and the answer is short. Here is what the page says, plus where gift cards sit among Square's other payment types and plans.
What Square's pricing page says about gift card redemption fees
Square's pricing page says there are no additional fees when a gift card is redeemed. The customer spends the stored balance, and Square does not add a charge on top of that redemption.
That is the whole answer to the redemption question. Say someone buys a $25 gift card in December and spends it in March. That March visit does not trigger an extra fee from Square.
How gift card purchases and redemptions differ on the fee side
The redemption side is clear. Square's page speaks only to redemption, not to selling a gift card.
Square's pricing page says with Square Free there are no monthly subscription costs, and you only pay processing fees when you take a payment.
The page also says processing fees vary based on the Square plan you choose. It does not single out gift card sales for a special rate on the pricing page.
The page gives no separate fee for selling a gift card, so confirm with Square how a gift card sale is charged. Redeeming one does not add a fee, per Square's page.
How gift cards fit into Square's plan structure
Square's pricing page says its plans start at no cost and have no hidden fees or locked-in contracts. The page says you only pay when you take a payment.
The page says the monthly fee per location is $0, $49 or $149, and Square Plus and Square Premium charge it per location. That monthly cost is about the plan itself, not about gift cards. The gift card redemption rule sits on top of whichever plan you have.
The page also says you do not need to purchase hardware to take payments with Square.
What Square's page says you can accept, including Square Gift Cards
Gift cards are one of several payment types Square's page lists. The page says you can also take cash, checks, and Square Gift Cards. On the fee side, the page says cash or check payments are free.
For cards, the page says you can accept every major card, Visa, Mastercard, American Express, and Discover, all for the same processing fees.
So a customer paying with a gift card is different from one paying with cash. Cash is free on Square's sheet. A gift card redemption carries no additional fee. A card payment carries processing fees that vary by plan.
Where to confirm current gift card pricing
Published prices change. Square could update its plans, its monthly fees, or its gift card terms after this article is written. Before you sign up, read Square's own pricing page and confirm the current terms there. That page is the source for every figure and rule described above.
If you are weighing gift cards against other payment costs, two related reads may help. One walks through what a tap of a card costs at the counter across several processors' published sheets, including Square's in-person rates. The other covers what fast payouts cost when you do not want to wait for the standard schedule.
Related reading on payment processing costs
Gift cards are one piece of a bigger cost picture. The cost of taking cards at your counter comes from the same published price lists. So does the cost of getting your money faster than the standard schedule. Reading those sheets together gives you a fuller view of what you pay to be paid.