Finder experts pick Square as a 2020 best brand for payment processing.
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Square payments review
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A popular on-the-go payment processor offering flat fees.
Square revolutionized payment processing in 2009, introducing its small plug-in credit card reader now used at millions of small businesses around the world. But its payment processing is just the start — it offers so much more than its signature white card reader.
- Choose this provider if you process up to $250,000 annually and want in-person and online support.
- Consider something else if you run a large business and need a dedicated merchant account.
Details
| Solutions | In-store Mobile E-commerce |
|---|---|
| Products | Payment processing POS software POS hardware Website builder Inventory tracking Shopping cart software |
| Contract required? | No |
| Prices start at | 2.6% + 10¢ for payment processing, POS software included |
| Processing time | Next day |
| High-risk merchants accepted? | No |
What's in this review?
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 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
Pros
- Upfront pricing. Square’s site breaks down fees for its products and services, so you won’t be fooled by hidden costs.
- Free features. Sign up for a Square account and get a free card reader and access to Square’s online store-building software.
- Monthly billing. With no contract, you’re free to leave with no cancellation fees.
Cons
- Limited support. Unlike major competitor Stripe, Square doesn’t offer 24/7 tech support.
- Transaction holds. Since Square is a payment aggregator, its acceptance rate is high — but so are reported transaction holds. If you run a high-risk business, read Square’s terms of service before you apply to reduce your risk of sudden account closure.
Customer reviews and complaints
Square reviews are mixed. It’s accumulated a staggering 2,941 complaints with the Better Business Bureau over the past three years. But on Trustpilot, it boasts an impressively high TrustScore: 4.8 out of 5 based on 1,682 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:
- Go to Square’s site and click Start a Square account.
- Enter your email address and create a password.
- Review Square’s terms, privacy policy and e-sign consent form. Click Continue.
- Select your business industry and indicate whether you plan to sell in person, online or both. Click Continue.
- 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.
Compare other providers
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.
