Payments & Reconciliation
Part of POS contracts and replacement
Payment processing commitments in a POS deal
Identify processor, terminal, fee, billing and exit commitments before agreeing to a POS payment setup.
Identify the agreement behind each payment route, terminal and POS subscription before signing. A Shopify-supported reader requires Shopify Payments. Square card processing is governed by Square Payment Terms and Square’s General Terms of Service.
Record each recurring charge, processing fee and exit obligation against its agreement. A software subscription does not set terms for a separate processor or terminal.
Trace a card sale
Shopify-supported card readers work with Shopify POS, require Shopify Payments and sync transactions to the Shopify order Timeline. For in-person payments through Shopify Payments in Australia, supported card brands include Visa, Visa Debit, Mastercard, Debit Mastercard, American Express, JCB and eftpos.
At a Shopify POS Pro location, card payments through Shopify Payments are authorised at the point of sale and captured after a delay of up to 15 minutes. A cancelled order in that window has no transaction fee. After capture, changing the items or amount charged requires a refund.
An external card reader uses its own payment processor. Marking an order paid in Shopify records payment status only; it does not mean Shopify processed the charge. The external processor’s card acceptance and fees are separate.
Do not treat Square’s Instant Transfer fee as a card-processing rate, or assume a rate for in-person payments also applies to keyed or online transactions.
How to Trace a Card Sale Through Different POS Systems
- Use Shopify-supported reader with Shopify PaymentsTransaction syncs to Shopify order Timeline; authorised at POS, captured within 15 minutes
- Cancel order within 15-minute windowNo transaction fee applied
- Use external card readerPayment status marked in Shopify only; processor and fees are separate
- Post-capture changesRequire a refund; cannot adjust amount or items charged
Record each commitment
For each payment route, identify the contracting entity, processor or acquirer, and the governing terms. The POS brand alone does not identify the processor for an external terminal.
- the processor and merchant account;
- the terminal’s owner, purchase balance or rental and return terms;
- rates for the payment types the business uses;
- refund, dispute and payout conditions;
- agreement term, renewal, notice and cancellation method; and
- access to transaction records after the POS changes.
Square’s Payment Terms name Square AU Pty Ltd (ABN 38 167 106 176) as the contracting party. Square describes itself as a payment facilitator and the acquirer for credit, debit and prepaid processing over the Visa Merchant Direct Exchange and Mastercard Interface Processor networks. It is a Visa and Mastercard member and an eftpos participant, but not an eftpos member.
Using Square Payment Services means accepting Square’s General Terms of Service, Payment Terms and other applicable terms, policies and guidelines. Additional Point of Sale Terms cover certain services, including Gift Cards, Staff, Loyalty, Marketing and Instant Profile. Afterpay has separate Merchant Terms.
Square’s General Terms include a Section 19 liability limitation and Section 22 provisions requiring arbitration for potential legal disputes. The General Terms apply to sign-ups on or after 30 June 2025 and became effective for all Square sellers on 13 July 2025. The Payment Terms apply to all Square sellers from 1 October 2026.
Square can add or remove accepted card brands or payment methods with at least 10 days’ advance notice by email, where practicable and permitted. Sellers are not required to accept any particular card brand or other payment method as a condition of receiving Square Payment Services.
Shopify Payments vs Square Payment Services in Australia
- Contracting EntityShopify Payments (via Shopify Inc.)
- Processor / AcquirerShopify Payments (directly for Shopify-supported readers)
- Card Brands SupportedVisa, Visa Debit, Mastercard, Debit Mastercard, American Express, JCB, eftpos
- Processing Fee ModelVaries by plan; no separate fee for Shopify POS Pro users on supported plans
- Instant Transfer Fee (from 1 Oct 2026)1.95% (increased from 1.5%) – not a card-processing rate
- Liability LimitationSection 19 of Square General Terms
- Dispute ResolutionMandatory arbitration under Square General Terms
- Hardware OwnershipDepends on purchase or rental agreement; not included with software subscription
- Exit ObligationsReturn terminal per rental or ownership terms; cancellation notice required
Key Financial Commitments in POS Payment Agreements
- Minimum Term
- Varies by agreement; not set by software subscription alone
- Early Exit Fee
- Only if specified in processor or terminal agreement
- Monthly POS Subscription (Shopify)
- Per location; includes in-person features at no extra cost
- Terminal Rental Balance
- Payable based on rental agreement; return conditions apply
Before Signing a POS Payment Agreement: Key Items to Verify
- Identify the contracting entity (e.g., Square AU Pty Ltd ABN 38 167 106 176)Yes
- Confirm the payment processor and acquirerYes
- Record all recurring charges and processing feesYes
- Check exit obligations including return deadlines and early cancellation feesYes
- Verify access to transaction records after switching POS systemsYes
- Review dispute, refund and payout conditionsYes
Include software billing in the exit date
All paid Shopify subscription plans include some in-person selling features at no extra cost. Shopify POS Pro is an add-on to any Shopify plan, charged monthly per POS location and managed location by location.
Square’s Payment Terms state that the Instant Transfer fee increases from 1.5% to 1.95% on 1 October 2026. That is a transfer fee, not a card-processing rate.
Square’s General Terms name Hardware Policies and Limited Warranty as applying to Square or third-party hardware and accessories purchased or used from Square or an authorised retailer.
Record seller-side minimum term, renewal date, cancellation method, notice period or early-exit fee, and terminal ownership, rental amount, balance payable, return conditions or return deadline, only where the applicable agreement sets them out.
Key Dates for Square Payment Terms and Fees in Australia
- 13General Terms Effective for All Sellers
- 1Payment Terms Apply to All Sellers
- 1.95%Instant Transfer Fee Increase to % — 1 October 2026
