TL;DR
- Square has enabled Bitcoin payments for over four million merchants across the United States through the Lightning Network.
- The feature will be available nationwide except in New York, with zero processing fees until 2026 and a fixed 1% fee starting in January 2027.
- Transactions are final and cannot be refunded on-chain; Square will handle refunds through digital gift cards.
Square has activated Bitcoin payments for more than four million merchants in the United States, marking one of the largest merchant rollouts in crypto industry history.
The feature is fully integrated into the company’s point-of-sale system, allowing merchants to process instant transactions via the Lightning Network and settle them in either BTC or U.S. dollars, depending on their preference.
Square Temporarily Waives Fees
Bitcoin Payments will be available to all merchants in the country except those in New York, excluded due to the state’s BitLicense regulatory framework. Square confirmed that transactions will carry no processing fees until 2026, after which a flat 1% fee will apply starting January 2027. Merchants can activate the feature from their Square Dashboard under “Banking → Bitcoin.” When a customer selects Bitcoin at checkout, the terminal displays a Lightning invoice QR code, which can be scanned with any compatible wallet, including Cash App.
Payments are settled almost instantly, and the system includes built-in reporting, tax management, and automatic reconciliation. To maintain operational security, Square set a $600 limit per transaction and a daily cap of $20,000 per merchant.
Because Bitcoin transactions are final and irreversible on the blockchain, refunds will be handled through electronic gift cards equivalent to the dollar amount of the purchase. By bypassing traditional card networks, merchants also eliminate the risk of chargebacks—an important advantage for small businesses.
Bitcoin Conversions
The company also launched Bitcoin Conversions, a tool that automatically converts up to 50% of a seller’s daily card or ACH revenue into Bitcoin and stores it in a Square wallet. The service carries a 1% fee—or 0.5% for premium users—and is designed to gradually integrate BTC holdings into everyday business operations.
Square aims to expand Bitcoin’s utility in daily commerce, turning it into a functional means of payment. If adoption grows, millions of points of sale could soon accept Bitcoin for coffee, services, or concert tickets—without banks or card processors in between
