Square Virtual Terminal: Free, Simple, and Genuinely Useful

How Square Virtual Terminal Works

Square’s virtual terminal lets you key in credit card payments from any computer, tablet, or phone. No hardware required. You log into your Square Dashboard, enter the card details, and the payment processes through Square’s network. For a broader overview of how virtual terminals work generally, see our free virtual terminal guide.

It’s included free with every Square account. No subscription needed, no add-on fees, no setup costs. Just sign up for Square, link a bank account, and you can start taking card-not-present payments within minutes.

What’s Included with a Square Account

Beyond the virtual terminal, every free Square account includes a few features that work alongside it:

• Email invoicing. Create and send invoices that customers can pay through a payment link.
• Tap to Pay on iPhone and Android. Take contactless payments directly on your phone with no hardware. Lower rate than keyed-in transactions.
• Free Square Reader for magstripe. One free card reader ships when you sign up. Plugs into your phone for swiping cards.
• Customer profiles. Save customer information and saved cards for repeat billing.
• Recurring billing. Set up subscription or scheduled charges for repeat customers.
• Dashboard and reporting. Track sales, refunds, deposits, and payment history.
• Free fraud monitoring. Square Risk Manager runs in the background.

Keyed-in transactions cost more than tap-to-pay or in-person swipes because card-not-present transactions carry higher fraud risk. See the pricing section below for current rates.

Square Virtual Terminal Pricing

Square uses flat-rate pricing with no monthly fee on the Free plan. Here are the current rates as of 2026. Square does change pricing occasionally, so confirm rates with Square when you sign up.

What This Means in Practice

If you’re a service business processing $5,000 per month mostly through keyed-in phone orders, your Square fees would be roughly $175 per month at the 3.5% + 15¢ rate. Compared to a traditional merchant account that charges $25 to $50 per month plus processing, you’d pay similar overall but skip the monthly commitment.

If you process the same volume through Tap to Pay (2.6% + 10¢ on iPhone), your fees drop to about $130 per month. That’s why on-site contractors often prefer Tap to Pay over keyed entry when possible.

Square’s Paid Plans

Square also offers paid plans that lower processing rates and add features:

• Square Plus ($49 per month per location): Reduced online rate of 2.9% + 30¢, advanced item settings, QR code ordering, more reporting
• Square Premium ($149 per month per location): Everything in Plus, plus 24/7 phone support, advanced analytics, real-time shipping rates

For most small businesses, the Free plan is the right starting point. Upgrade only if your monthly volume justifies the lower rates that come with paid plans.

Other Fees to Know About

Square charges a few additional fees in specific situations:

• Instant deposits to your bank: 1.75% (standard 1-2 business day deposits are free)
• Chargebacks: $0 fee, but you lose the disputed amount until resolved
• Refunds: Free, but Square keeps the original processing fee
• Hardware: First Square magstripe reader is free, additional readers $10 each, contactless and chip reader $59

There are no setup fees, no PCI compliance fees, no statement fees, and no minimum monthly volume requirements on the Free plan.

Square Virtual Terminal vs. Other Options

Square is a strong option, but it’s not the only one. Here’s how it compares to two common alternatives.

When Square is the Right Choice

Square is the strongest option for small businesses processing modest volumes who want a free, simple, no-contract setup. It’s the right fit if:

• You take payments by phone, by mail, or on-site
• You don’t process huge monthly volumes
• You want everything in one ecosystem (POS, online store, payroll, scheduling)
• You want fast setup with no underwriting delays
• You don’t need advanced fraud detection or interchange-plus pricing

When Authorize.net Might Be a Better Fit

If you need advanced fraud detection, recurring billing for subscriptions, integration with specific e-commerce platforms, or process high volumes and want interchange-plus pricing through a paired merchant account, Authorize.net is worth considering. It costs more but offers more advanced features.

When to Compare Multiple Processors

If you process high volumes (typically over $20,000 per month in card transactions) or have specialized needs, comparing rates from multiple processors is usually worth the time. Different processors offer different pricing depending on your business type and volume. Get free quotes from competing payment processors to see what your business specifically can negotiate.