Best Payment Processing for Tattoo Shops: Stop Losing Money on Every Transaction

Let me tell you about the time I realized I was paying $800/month in credit card processing fees and had no idea.

I’d been using the same clunky payment terminal my shop came with — some legacy system from the previous tenant with a monthly fee, per-transaction charges, a monthly minimum, PCI compliance fees, and about four other line items that I didn’t understand. When I finally sat down and added it all up, I nearly spit out my coffee.

Switched to Square the next week. Saved about $300/month. Setup took 20 minutes.

The payment processing industry is full of confusing pricing, hidden fees, and salespeople who prey on small business owners who don’t know better. Let me break down your actual options as a tattoo shop owner so you don’t get ripped off.

Understanding Payment Processing Fees

Before we compare options, you need to understand how fees work:

Flat-rate pricing: You pay the same percentage on every transaction. Example: Square charges 2.6% + $0.10 per tap/swipe. Simple, predictable, no surprises.

Interchange-plus pricing: You pay the actual card network fee (varies by card type, 1.5-2.5%) plus a fixed markup. Example: interchange + 0.3% + $0.10. Potentially cheaper for high-volume shops but harder to understand and predict.

Tiered pricing: Transactions are categorized as “qualified,” “mid-qualified,” or “non-qualified” with different rates. This is how legacy processors hide fees. Avoid this model entirely.

For most tattoo shops doing under $30,000/month in card transactions, flat-rate pricing is the way to go. It’s transparent and the math is easy.

The Best Options for Tattoo Shops

1. Square — Best Overall

Fees: 2.6% + $0.10 (in-person tap/swipe/insert) | 2.9% + $0.30 (online) | 3.5% + $0.15 (keyed-in) Monthly fee: $0 for basic | $29/mo for Plus | $69/mo for Premium Hardware: Square Reader $49 | Square Terminal $299 | Square Register $799

Square dominates the tattoo shop payment market for good reason:

Why tattoo shops love it:

• No monthly fees on the basic plan
• Flat, transparent pricing
• Free POS app with tip presets (clients can tip right on screen)
• Same-day deposits (free with Square checking, otherwise next business day)
• Receipt via text or email
• Works with phone or iPad — no special terminal required
• Integrates with Square Appointments for deposits and full payments
• Dashboard shows daily/weekly/monthly totals, tip breakdowns, and per-artist tracking (with some setup)

The tip situation: This is huge for tattoo artists. Square’s built-in tipping prompts (15%, 20%, 25%, custom) significantly increase tip amounts versus cash. Clients who would have tipped $20 in cash will tap 25% on screen and tip $50 on a $200 tattoo without thinking twice. This alone can add thousands per year to your income.

Hardware recommendation: Start with the Square Reader ($49) plugged into your phone or iPad. If you want something more professional at the front desk, the Square Terminal ($299) has its own screen and handles everything without a phone.

2. Stripe — Best for Online Payments

Fees: 2.9% + $0.30 (online) | 2.7% + $0.05 (in-person with Stripe Terminal) Monthly fee: $0 Hardware: Stripe Reader $59

If the majority of your payment collection happens online — deposits through your booking system, full prepayment for sessions, flash sales through your website — Stripe is the better choice.

Why Stripe makes sense for some shops:

• Lower in-person fees than Square (2.7% vs 2.6% but $0.05 vs $0.10 per transaction)
• Best online payment integration — most tattoo booking platforms (Porter, TattooPro.io) use Stripe for deposits
• Better for recurring payments (multi-session projects with scheduled payments)
• More developer-friendly if you have a custom website

Why most shops still go with Square:

• Square’s ecosystem (POS, appointments, payroll, banking) is more complete
• Square’s hardware is better and more widely available
• Stripe is primarily an online payment processor — their in-person terminal is an afterthought
• Square is easier to set up without technical knowledge

My recommendation: Use Stripe for online deposit collection through your booking platform, and Square for in-person payments at the shop. Most booking platforms (Porter, TattooPro, Acuity) use Stripe by default for online payments, so this dual setup happens naturally.

3. PayPal / Venmo — Informal but Widespread

Fees: 2.99% + $0.49 (PayPal in-person) | 1.9% + $0.10 (Venmo business) Monthly fee: $0

A lot of tattoo artists — especially solo artists and those working out of private studios — just use Venmo or PayPal for everything.

The appeal:

• Everyone has Venmo/PayPal already
• No hardware needed
• Quick transfers to your bank
• Clients are comfortable with it

The problems:

• PayPal and Venmo are NOT designed for business transactions and can freeze your account if they detect business activity on a personal account
• No POS system, no reporting, no tip tracking
• Venmo Business has a 1.9% fee — many artists use personal Venmo to avoid fees, which violates Venmo’s terms
• No integration with booking or accounting software
• Harder to dispute or track transactions

My take: If you’re using personal Venmo to take payments, you’re playing with fire. Venmo can and does freeze accounts for business use. Either use Venmo Business (and eat the 1.9% fee) or switch to Square. The risk isn’t worth the savings.

4. Cash App for Business — Budget Alternative

Fees: 2.75% (in-person) | 2.9% + $0.30 (online) Monthly fee: $0

Cash App for Business is the simplest possible payment setup:

• Accept payments via Cash App
• Free card reader
• Instant deposits to your Cash App balance
• Basic reporting

Works for: Solo artists who want something even simpler than Square and whose clients already use Cash App.

Doesn’t work for: Multi-artist shops needing per-artist tracking, shops wanting professional POS features, anyone needing detailed reporting.

5. Clover — Best Traditional Terminal

Fees: Varies by plan, typically 2.3-2.6% + $0.10 Monthly fee: $14.95-$84.95/mo Hardware: Clover Go $49 | Clover Flex $599 | Clover Mini $799

Clover offers traditional payment terminals with more hardware options than Square.

When Clover beats Square:

• You want a countertop terminal that looks more “established” than an iPad
• You prefer traditional payment terminal UX
• Your accountant or bookkeeper prefers Clover’s reporting

When Square beats Clover:

• Lower total cost (no monthly fees on basic plan)
• Better ecosystem (appointments, payroll, inventory)
• Easier setup
• More transparent pricing

My take: Unless you have a specific reason to choose Clover, Square is simpler and cheaper for tattoo shops.

Processing Fees: The Real Math

Let’s see what different processors actually cost on realistic tattoo shop volume:

Solo Artist: $8,000/month in card transactions

The differences are minimal — $10-15/month. At this volume, pick based on features and convenience, not fees.

Multi-Artist Shop: $25,000/month in card transactions

At $25K/month, an interchange-plus processor saves ~$190/month ($2,280/year). At this volume, it’s worth shopping for better rates.

The Cash vs. Card Debate

I’m not going to tell you what to do with cash. But I’ll lay out the facts:

Going mostly card:

• Processing fees of 2.6-3.5% on every transaction
• Perfect record of every dollar for tax purposes
• Higher tips (screen prompts increase tip amounts 15-30% vs cash)
• Easier accounting and bookkeeping
• Safer (less cash on premises)
• Commission splits are transparent and trackable

Staying cash-heavy:

• No processing fees
• Immediate access to funds
• Privacy (which can mean different things to different people)
• Harder to track for accounting and taxes
• Security risk (theft, robbery)
• No records for disputes

Most shops today are 60-80% card transactions. Clients increasingly expect card acceptance, and younger clients (your primary demographic) rarely carry cash. Don’t lose a booking because you’re cash-only.

Tips for Reducing Processing Costs

1. Use tap/swipe instead of keyed-in. Keyed-in transactions cost 3.5% vs. 2.6% for tap/swipe. Always use the physical reader.

2. Set up your tip presets strategically. Most artists use 18%, 22%, 25%, Custom. Clients tend to pick the middle option.

3. Consider surcharging (where legal). Some states allow a credit card surcharge to offset processing fees. Check your state’s laws — it’s legal in most states but banned in a few.

4. Negotiate at volume. If you’re processing $20K+/month, call Square (or another processor) and ask for volume pricing. They often have unadvertised rates for higher-volume merchants.

5. Review your statements. If you’re not on Square’s flat rate, check your monthly statement for hidden fees — PCI compliance fees, statement fees, batch fees, monthly minimums. These add up.

My Setup

• In-person payments: Square Terminal at front desk ($299 one-time, no monthly fee)
• Online deposits: Stripe (through Porter booking software)
• Backup: Cash accepted but not encouraged
• Monthly processing cost: ~$500 on ~$20K in card transactions
• Processing cost as % of revenue: 2.5%

That 2.5% is a cost of doing business. I factor it into my pricing (round up by about 3%) so it doesn’t eat into margins.

Frequently Asked Questions

What is the best payment processor for tattoo shops?

Square is the best overall payment processor for tattoo shops due to its flat-rate pricing (2.6% + $0.10 per tap/swipe), free POS software, easy setup, and strong ecosystem. For shops processing over $10,000/month, Stripe offers competitive rates and better online payment features.

Should tattoo shops go cashless?

Going fully cashless is a business decision with trade-offs. Benefits include easier accounting, lower theft risk, and simpler tip tracking. Drawbacks include processing fees (2.6-3.5% per transaction) and excluding cash-preferred clients. Most shops keep cash as an option but encourage card payments.

How much do credit card processing fees cost tattoo shops?

Credit card processing fees typically range from 2.6% to 3.5% per transaction. On a $500 tattoo, that is $13-17.50 in fees. For a shop doing $20,000/month in card transactions, expect $520-700/month in processing fees.