Square Flips Bitcoin Payments On by Default for US Merchants

Square turned on Bitcoin payments by default for eligible US merchants, with zero processing fees through December 31, 2026, and a flat 1% rate from January 1, 2027. Sellers did nothing to get it. No forms, no webinars, no raised hands.

The move comes from Square, the payments platform owned by Block, Inc. Auto-enrollment began on March 30, 2026, and the full rollout across eligible sellers is scheduled to finish by November 10, 2026. The reach is the story here: Square's merchant network counts more than four million sellers.

That is a large distribution channel switching from opt-in to on-by-default. It is the biggest philosophical shift in the rollout, and possibly the most consequential for Bitcoin's use in everyday retail.

How the payments actually work

Transactions run over the Lightning Network, the layer built on top of Bitcoin for fast, cheap transfers. The practical result is near-instant settlement at checkout.

By default, merchants receive US dollars. The Bitcoin a customer sends converts automatically at the moment of payment, which means sellers never touch the asset or its price swings unless they want to. Those who prefer to hold can opt to keep the Bitcoin instead.

The hardware story is equally light. Square says no new equipment is needed. The feature plugs into existing tools, including Square Register, Invoices, and Square's apps.

What are the limits?

The fine print sets hard ceilings. Individual transactions are capped at approximately $600, and each seller faces a daily limit of roughly $20,000. Those numbers effectively rule out high-value use cases — think jewelry counters or car dealerships — and aim the product at everyday retail purchases.

Geography constrains it too. The service is unavailable in New York and certain other jurisdictions, a reminder that regulation still shapes where Bitcoin payments can legally operate at scale.

Square is also giving businesses a separate option: converting up to 50% of eligible daily card sales into Bitcoin.

Why Block is pushing this

The rollout reflects Block's ongoing effort to embed crypto into everyday commerce. CEO Jack Dorsey and Bitcoin product head Miles Suter are steering the initiative, according to the company's announcement.

The pitch targets two complaints small businesses raise about accepting Bitcoin: volatility and operational hassle. Automatic dollar conversion handles the first, since merchants get paid in fiat regardless of what the customer spends. Integration with existing Square tools handles the second, since there is nothing new to install or learn.

What does this change for the average merchant? Through December 31, accepting Bitcoin costs nothing in processing fees, requires no new hardware, and pays out in dollars unless the seller says otherwise. After that, the 1% flat rate applies — still well below typical card processing costs.

The default question

Opt-in crypto features have historically attracted a thin slice of merchants. Default enrollment inverts that math. Four million sellers gain a Bitcoin rail whether or not they ever think about it, and customers holding Bitcoin gain somewhere to spend it without the merchant managing keys or price risk.

The transaction caps and the New York exclusion show the boundaries of that ambition for now. But the direction is clear: Block is treating Bitcoin acceptance as standard checkout infrastructure rather than a niche add-on, and the November 10, 2026 completion date gives the industry a hard milestone to watch as the rollout reaches full coverage.