Square payments review

Finder experts pick Square as a 2020 best brand for payment processing.

Square services

Square helps businesses sell products online or in person with a range of services:

• Payment processing. Accept customer payments by card reader, tablet, mobile device or computer.
• POS software. Customizable point-of-sale software to help you process payments, manage inventory, keep track of customers and schedule employees.
• POS hardware. Its signature hardware lineup includes accessories like registers, terminals, card readers and barcode scanners.
• E-commerce solutions. Sign up for a free online store with no monthly fees and integrated payment processing.

Features

You’ll get plenty of what you’d expect from a processor, including inventory management, payroll, employee scheduling and loyalty programs. But Square goes above and beyond the standard features:

• Square installments. Offer customers the option to cover the cost of big-ticket items through monthly payment plans.
• Multichannel selling. Integrate your online and brick-and-mortar stores with synced orders and inventory levels across selling channels.
• Invoicing. Send invoices and automated payment reminders from the Square Invoices mobile app for iOS and Android.
• Business debit card. Link a Square business debit card to your POS system for immediate access to transaction funds.
• Gift cards and loyalty programs. Offer customers the opportunity to earn rewards and purchase gift cards online and in person.

What hardware is available?

Square’s proprietary hardware options include:

	Type of system	Connectivity	Screen	Accepted payments	Cost
Reader for magstripe	Mobile POS	Plug in or Lightning connector to phone or tablet	No screen	Magstripe	Free for eligible merchants (first reader)
Reader for contactless and chip	Card reader	Wireless	No screen	Chips, tap-and-go	$49
Stand	Countertop POS	Wi-Fi	No screen	Chips, tap-and-go	$199
Terminal	Card reader	Wi-Fi, Ethernet	L 5.6″ H 2.5″ W 3.4″	Magstripe, chips, tap-and-go	$299
Register	Countertop POS	Wi-Fi, Ethernet	13.25 in. (diagonal)	Magstripe, chips, tap-and-go	$799

Square offers more than 30 accessories and bundled hardware kits with everything you need to get up and running.

Square pricing and fees

Square clearly lists its products and pricing on its site, so you know what to expect when you sign up.

Square suggests its rates are best suited to businesses processing less than $250,000 annually at an average $15 transaction. For larger businesses, Square customizes its products and services based on payment volume and transaction size.

Each of Square’s four POS systems come with its own set of processing rates.

Square Point of Sale

For businesses that don’t need an industry-specific system, Square’s standard POS system comes with free software and transparent rates.

• Payments. 2.6% + $0.10 for all tapped, dipped and swiped payments
• Software. Free

Square for Restaurants

Those in the food service industry can sign up for software and processing rates.

• Payments. 2.6% + $0.10 for all tapped, dipped and swiped payments
• Software
  • Location. $60 monthly per location
  • POS system. $40 monthly for each additional system
• Delivery
  • $0.50 per order for in-house delivery.
  • $1.50 per order for third party delivery.

Square Appointments

If your business requires appointments — like a hair salon, pet grooming or spa — give your customers an option to book online.

• Payments
  • 2.6% + $0.10 for all tapped, dipped and swiped payments with one employee on file
  • 2.5% + $0.10 for all tapped, dipped and swiped payments with 2 to 10 employees on file
  • 3.5% + $0.15 for all keyed-in or card-on-file payments
• Software
  • Individuals. Free.
  • 2–5 employees. $50 monthly
  • 6–10 employees. $90 monthly

Square for Retail

Manage inventory and your employees with payment processing for online and brick-and-mortar storefronts.

• Payments
  • 2.5% + $0.10 for all tapped, dipped and swiped payments with 2 to 10 employees on file
  • 3.5% + $0.15 for all keyed-in or card-on-file payments
• Software. $60 monthly for each location

Additional processing rates

Square’s rates also depend on how you accept payments.

• Square Invoices. 2.9% + $0.30 for processing each invoice
• Square Virtual Terminal. 3.5% + $0.15 for all payments made through your computer
• Square Online Store. 2.9% + $0.30 for all payments processed through your online store.
• Square Point of Sale app. 3.5% + $0.15 for all card numbers entered manually through the app
• Card on file. 3.5% + $0.15 for all payments using stored card information

Software features

Square systems come equipped with free features that include reports and analytics, customer directory, team management and e-gift cards. You can add on features for a monthly fee:

• Employee payroll. $29, plus $5 a person
• Contractor payroll. $5 a person
• Loyalty programs. Starting at $45
• Email marketing. Starting at $15
• Gift cards. Starting at $0.80 a card

Pros and cons

Square reviews and complaints

Square reviews are mixed. As of October 2020, it has accumulated a staggering 4,653 complaints with the Better Business Bureau. But on Trustpilot, it boasts an impressively high TrustScore: 4.8 out of 5 based on 2,436 reviews.

The discrepancy between Square’s high TrustScore and unfavorable BBB reputation could be the result of complaints lodged against Square’s Cash app. Despite complaints about the app, Square customers praise an easy onboarding experience and personable customer service.

How do I open an account with Square?

Sign up with Square in minutes online:

1. Go to Square’s site and click Start a Square account.
2. Enter your email address and create a password.
3. Review Square’s terms, privacy policy and e-sign consent form. Click Continue.
4. Select your business industry and indicate whether you plan to sell in person, online or both. Click Continue.
5. Enter your full name, business address, date of birth, phone number and Social Security number. Click Continue.

What other products will I need?

None. Square offers what you need to accept customer payments, including payment processing, POS systems and a business checking account to immediately access your funds.

What is Square?

Square is a merchant services aggregator founded in 2009 and headquartered in San Francisco. In addition to its proprietary white card reader, services include POS systems, payment processing, business checking accounts, small business loans and e-commerce support for online merchants.

How do I contact Square support?

Touch base with Square by:

• Phone. Call 800-474-3398 weekdays from 6 a.m. to 6 p.m. PT.
• Email. Complete an online form for a response from the support team within one business day.

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Bottom line

Square’s merchant services can help you run your small business with integrated payment processing, industry-specific POS systems and a free online store builder. But its tech support isn’t available on weekends, and many of Square’s features cost extra. And because Square is a payment aggregator, high-risk businesses will want to look out for transaction holds and potential account termination.

If you’re not sure if Square is right for you, compare other payment processors to find a fit with your business and budget.

Frequently asked questions

• Are credit card company fees included in Square’s fees?

  Yes. You won’t pay credit card companies any fees when you use Square.

• What are Square’s deposit options?

  Deposit your funds at no cost in one to two business days. For faster deposits, choose instant on-demand or close-of-day deposits for a 1% fee. Unlike the free option, these deposit options process on holidays and weekends.

• Can I refund payments — and how much do refunds cost?

  Square allows full or partial refunds for free, including processing fees. Refunds are processed within 14 business days. You also have 60 days from the invoicing date to issue your refunds.