As more people begin to rely on digital payment methods, it can be challenging to keep track of every charge on our bank statements. One such charge that may cause confusion is the SQ charge, which appears on bank statements. Understanding what does SQ mean on your bank statement, the reasons behind it and how to identify it on your statement can help you manage your finances better.
What Is the SQ Transaction?
The SQ charge on a bank statement represents a payment processing fee charged by Square Inc, a widely used platform for processing digital payments.
What Is Square Inc?
Square Inc. offers payment processing solutions to businesses of all sizes, such as online retailers, small to mid-sized businesses, and individuals.
The processing fee is charged to businesses to cover the costs of processing credit and debit card payments made by their customers.
When you make a purchase from a business that uses Square as their payment processor, the transaction amount is processed by Square—meaning that they collect the payment, verify the credit card information and issue the payment to the business.
In return, Square charges the business a processing fee calculated as a percentage of the transaction total. The processing fee is usually 2.9% + 30 cents per transaction, but this may vary depending on the type of transaction and other factors involved.
It is a legitimate charge that represents the cost of the service provided by Square.
A similar charge labelled GPC EFT can appear on your credit card statement. Make sure you know how to handle it.
How Does SQ* Appear on a Bank Statement?
When you make a purchase from a business that uses Square as their payment processor, the transaction will appear on your bank statement along with a description of the transaction.
The following are some of the transaction codes and statement descriptors that may appear on your bank statement when an SQ charge is present:
- SQ*
- SQ*CAP
- SQUARE
- SQC*
- SQUAREUP
- GOSQ.COM
- SQ SQUARE INC
- Purchase SQ
- SQ My Business
- SQ Alma Charge
- SQU*SQ
- Checkcard SQ
- Square San Francisco CAUS
- POS Debit SQ
These transaction codes and descriptors may differ depending on the bank or financial institution where you hold your account.
It’s important to check your bank’s code list and ensure that you understand each code used to describe charges and payments on your statement.
To find the SQ charge on your credit card or bank statement, review the statement and look for a line item with a description that includes SQ, Square, SQ*, SQC*, or SQUAREUP followed by the merchant’s name or business name.
The amount of the Square Inc. transaction on your bank statement may vary depending on the payment made, but it should be clearly indicated on the statement.
How Much Does Square Charge Per Transaction?
When utilizing Square as a payment processor, it’s important to understand the fees associated with each transaction. Square charges a processing fee to businesses to cover the costs of processing credit and debit card payments made by their customers.
The fee is typically calculated as a percentage of the transaction total plus a fixed amount per transaction.
Here’s a breakdown of the fees typically charged by Square:
- For in-person transactions using a Square reader or point-of-sale system, the processing fee is usually 2.6% + 10 cents per transaction. However, Square occasionally offers special rates and promotions for new businesses or specific transaction types.
- For e-commerce transactions made online through a Square payment gateway, the processing fee is generally 2.9% + 30 cents per transaction. Again, occasional promotions and customized rates may be available for specific businesses or transaction volumes.
It’s important to note that these fees are subject to change, and specific pricing details should be confirmed with Square’s official pricing and fee schedule to ensure accuracy.
Square’s transparent fee structure helps businesses understand the costs associated with accepting digital payments. By being aware of the fees, both merchants and customers alike can make informed decisions when conducting transactions through Square’s platform.
How to Prevent Unknown SQ* Bank Charges
To prevent unknown SQ bank charges, it is essential to take certain precautions and follow some best practices when making transactions with Square.
The following are some steps you can take to prevent unknown SQ bank charges:
1. Keep Track of Your Transactions
The first step in preventing unknown SQ bank charges is to keep track of your transactions carefully. Review your bank statement regularly and ensure that you recognize each SQ transactions on it.
If you find any unknown charges, investigate them immediately and contact your bank or Square customer support if necessary.
2. Verify Transactions Before Making Payments
Before making any payments with Square, ensure that you are aware of the transaction total, including any processing fees.
Verify the transaction information before making any payment to ensure that you know what to expect.
3. Read the Merchant’s Payment Policies
Before making any payments, be sure to read the merchant’s payment policies and ensure that you understand the payment methods available.
Some merchants may not offer alternative payment methods or may charge extra fees for using digital payment methods.
4. Use Trusted Merchants
To reduce the risk of unknown SQ bank charges, it is best to use trusted merchants.
Before making any payments, do some research to ensure that the merchant is reputable and reliable. Check the merchant’s reviews, ratings and verify their credentials before making any payment.
If you do not recognize a transaction with an SQ* or GOSQ.COM transaction, it may be indicative of fraudulent activity, and it is essential to address it with your bank promptly.
You can also check your Square account history to verify the transaction and ensure that it is legitimate.
Handling an Unknown SQ Bank Charge
It’s possible that you made a purchase or payment through Square and simply don’t remember. You can check your recent transactions on your Square account to see if there is any information about the charge.
If you are still unable to determine the cause of the charge, you can contact Square customer support for assistance.
If you are unable to resolve the issue with Square and believe that the charge is fraudulent or unauthorized, you can dispute the charge with your bank.
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