Square at a Glance
Square is popular among small and mid-sized businesses because it has no monthly fees for the basic plan and a flat transaction fee structure. This can make it ideal for brand-new businesses that want a solid POS platform without spending much upfront.
Square Processing Fees
Payment processing can be a big headache for businesses because there are multiple fees levied by card companies, banks and compliance standards. Square’s platform handles all of these for you and only requires you to pay them a few cents for each transaction.
Card-Present Payments
You pay 2.6% plus 10 cents per transaction for card payments accepted using a Square Reader, Register, Stand, Terminal, Retail Plus or Square for Restaurants.
Keyed Payments
If you key in the card details manually or from a file, you pay a transaction fee of 3.5% plus 15 cents per transaction.
For a purchase done through eCommerce API, Square Online Store, Square Online Checkout or online invoicing, you pay 2.9% plus 30 cents for cards or 1% with a minimum of $1 per transaction for ACH bank transfers (via invoices only).
Hardware and software
Square provides multiple hardware options for its service. The software for all of them is free. In many cases, you can download it from Google Play Store and Apple App Store. The software updates are also pushed via the app stores.
- Square Reader for magstripe: When you sign up for Square, you get a free magstripe reader, which is good enough to get you started. It comes in handy when you are on the go and need to accept payments. Additional Square Reader for magstripe costs $10 each.
- Square Reader for contactless and chip: This reader accepts payments via chip as well as contactless methods such as Apple Pay and Google Pay. This device, which starts at $49, is incredibly useful in a post-pandemic business landscape where contactless payment is on the rise. If you also need the charging dock, the set costs $66.
- Square Stand for contactless and chip: This device plugs into your iPad and converts it into a checkout station that can be used anywhere in your shop. It costs $149 or $14 per month for 12 months and comes bundled with a Square Reader for magstripe as well as a Square Reader for contactless and chip.
- Square Terminal: The latest device from Square comes with a built-in display, magstripe reader, chip reader and receipt printer. It costs $299 or $27 per month for 12 months.
- Square Register: This top-shelf device lets you accept payment from magstripes, chip cards, Apple Pay, Google Pay, e-Wallets and more. Square Register comes with the POS software pre-installed and costs $799 or $39 per month for 12 months.
Featured Partners
1
Stax
No
First Month Free
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
2
Paysafe
No
SAVE or get a $200 gift card + FREE payment equipment*
Industry-low rates starting at $0.15 batch fee + 0% Cash Discount Plans available
3
Payment Depot
No
$0 Setup & No Cancellation Fees
Customized Interchange+ Pricing - Rates as low as 0.2% - 1.95%
4
Finix
No
Save up to 40% on credit card processing
Transparent subscription-based pricing with 0% markup on interchange fees
Core Services
Square services come in four flavors, which lets businesses set up payment systems for both static and dynamic systems.
Square POS
Square POS is free forever regardless of the hardware you choose. It also comes with a free Square Reader for magstripe device.
Square Appointments
Square Appointments is free for individuals, $50 per month for businesses with two to five employees and $90 per month for those with six to 10 employees.
Square for Restaurants
Square for Restaurants offers a free version that supports unlimited devices and locations. Being a restaurant-specific POS software, it lets you manage end-to-end restaurant operations from table management, course management and discounts to inventory management and reporting.
It has three plans – Free, Plus and Premium. Paid plans start at $60 for each location. Transaction fees are 2.6% plus 10 cents for in-person payments and 2.9% plus 30 cents for online payments.
Square for Retail
Like the restaurant software, Square for Retail has a robust free version. This app manages a wide variety of retail functions like vendor and purchase management.
Like the Restaurant platform, it has three plans: Free, Plus and Premium. Paid tiers start at $60 for the first establishment and $40 for the subsequent locations. Transaction fees are 2.5% plus 10 cents for in-person payments and 2.9% plus 30 cents for online payments.
Other Benefits
Square App Marketplace offers multiple third-party integrations. These apps come at different costs depending on what you need. Additionally, Square also provides add-on features at extra cost:
- Invoicing: Costs 2.9% plus 30 cents per payment
- Loyalty: Starts at $45 per location, per month
- Marketing: Starts at $15 per month for up to 500 customers
- Payroll: Costs $5 per month per contractor and $29 plus $5 per month per employee
- Team management: Free Basic Plan. Plus plan costs $35 per location per month
Fine Print
Due to a flat transaction fee system, end-of-day reconciliation with Square is very easy. Square makes it easier by letting you decide your end-of-day preferences.
The major pull of Square payment processing system is its flat transaction fee system, but it can become expensive if your transaction volume scales up. If you find costs getting high, you can get in touch with the company and work out a customized plan that works best for you.
Square has a list of prohibited goods and services. If you offer any of them, your account will be frozen without notice, because it is included in its terms and conditions.
How Square POS Stacks Up
Before you choose Square, you should have an idea of what its competitors offer. Here we compare it with Shopify and Lightspeed.
When compared to Shopify and Lightspeed, Square is the only one with zero monthly fees and basic hardware included. The downside is it doesn’t provide 24/7 phone support. Both Shopify and Lightspeed fare better than Square in this regard.
Read more: Square Vs. Clover Vs. Stripe
Is Square Right for You or Your Business?
If you are just starting out and do not know how much your business will bring in, Square is the perfect choice for you because it has zero monthly fees with a Square Reader for Magstripes thrown in. Enough to get you started right away.
If your transaction volume is low or fluctuates from one month to the next, Square can be a good fit because it ensures that you pay processing charges only for what you earn. The lack of a monthly fee makes it one of the more flexible POS platforms available.
Frequently Asked Questions (FAQs)
Does Square support third-party integrations?
Square supports multiple third-party integrations via its Square App Marketplace. You might have to pay for those integrations separately, depending on which apps you choose.
How long does it take Square to transfer money to my account?
Square takes one to two business days to transfer payments to your account. If you want an immediate transfer, that comes at an additional 1.5% fee.
Does Square offer fraud protection?
Square automatically monitors all payment activity and provides alerts on suspicious activity through both algorithmic automation and human observation. According to the company, Square evolves its fraud detection policies constantly to keep customers as safe as possible.
Is Square secure?
Square is Payment Card Industry Data Security Standard (PCI DSS)-compliant and its products do not save payment card data. All data is kept on the vendor server in encrypted form. Additionally, a customer’s full credit card number is never displayed even to the seller.
What is the difference between payment gateways and payment processors?
The two are very similar in that they help process transactions between merchants, customers and banks. Payment processors can’t verify the customer is who they say they are, whereas a payment gateway can.
How do I choose the right POS system for my business?
The best POS system for your business depends on a variety of factors, including the type of business you have, your budget and the features you need. For many situations, it makes sense to invest in the best system you can afford, and preferably, the system can grow with your business.
