Understanding Fee Rounding
Square uses Half Even Rounding (also known as Banker’s Rounding).
Processing Fee Rounding
For processing fees, we round to the nearest $0.01. For example, if you accept a payment for $10.00, we will deduct fees of $0.27 (2.65% x $10.00 = $0.265 = $0.27).
Note: Transaction and item tax is calculated with bankers’ rounding, or round half to even, which pulls even numbers down. Learn more about bankers’ rounding.
Here’s an example to better illustrate why we do this type of rounding:
|+ 106.2038||+ 106.20|
|= 503.5842||= 503.58|
When using standard rounding, you round up or down to the nearest number. For amounts in the middle (ending in 5), it rounds up. This results in a bias towards a higher amount. Bankers’ rounding is closer to the actual amount.
Payments made in cash round to the nearest $0.05.
$1.01 or $1.02 round down to $1.00
$1.06 or $1.07 rounds down to $1.05
$1.03 or $1.04 round up to $1.05
$1.08 or $1.09 round up to $1.10
Note: Sale totals including taxes are calculated to the penny. Only the total cash payment or change made for a cash payment is rounded to the nearest $0.05.