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Understand Neighborhoods fees and payments

Who is this article for?
  • Account owners or team members with online permissions.
  • Sellers participating in Neighborhoods on Cash App.
  • Square for Restaurants Free, Plus, and Premium subscribers.
  • Square Free, Square Plus, and Square Premium subscribers with advanced restaurants capabilities added.
  • About Neighborhoods fees and payments

    Square initially funds Local Cash rewards for participating businesses as part of your enrollment offer.* After the introductory period, you only pay the cost of Local Cash redemptions at your business, and are not charged for rewards your customers earn. Reward rates and funding terms may vary and are subject to change.

    About Neighborhoods fees and payments

    Neighborhoods on Cash App offers a 1% processing fee on orders placed directly through Cash App. Standard Square processing rates apply to all other transactions, including in-store, web, and orders where a buyer uses Cash App as a payment method outside of the Cash App ordering experience.

    How funds flow

    • Funds from Neighborhoods orders are deposited into the same bank account as your other Square transactions.

    • Local Cash rewards are initially funded by Square for participating businesses as part of your enrollment offer. Reward rates and funding terms may vary and are subject to change.

    • Local Cash payments appear alongside other Square transactions in your Payments & orders tab. Look for "Cash App payment" as part of the transaction.

    Learn more about Neighborhoods on Cash App and Local Cash in the Cash App Help Center, or share this link with customers who have questions about how to use Local Cash.

    Learn About Square’s Fees

    Understand processing fees

    Neighborhoods processing fees depend on how the order is placed:

    • Orders placed directly in Cash App: 1% processing fee. This includes orders placed through your Cash App ordering profile.

    • Orders placed on your web ordering profile: Standard online processing rates apply, even if the buyer pays with Cash App.

    • In-store orders: Standard in-store processing rates apply, even if the buyer pays with Cash App.

    • On-demand delivery orders: Delivery fees apply separately.

    To confirm whether a specific order qualifies for 1% processing, check the order source in Square Dashboard. Only orders with a Cash App order source qualify.

    Understand how funds work

    Funds from all Neighborhoods orders, including Cash App orders, web orders, and in-store orders, are deposited into the same bank account linked to your Square account.

    There is no separate deposit or payout for Neighborhoods orders. They appear alongside your other Square transactions.


    Understand Local Cash costs

    Customers who follow your business earn 10% of their order subtotal in Local Cash rewards.

    Local Cash rewards are funded by Square for participating businesses as part of your enrollment offer.*

    After that, you pay only when customers redeem Local Cash at your business. Your monthly Local Cash cost will only be up to the total Local Cash earned at your business that month.**

    *Valid for Square sellers in the US only. Offers may vary and are subject to change. Not redeemable for cash. Void where prohibited.

    **Rewards subsidies calculated on a per-location basis and subject to the Neighborhoods Terms. Offers and program terms subject to change.

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