I was frustrated with this too. The measurements on the package are NOT the way I would measure. To me, a 2 inch square means each side is 2 inches.
I have a 2" square punch. I can't remember where I got it. It's been a while. It says "punch bunch" on the top and the SKU sticker "Punch-Mega Giant Square 2 in"
Here's one at the superstore that says it's 2 inch.