Square Credit Card Processing Review (Square Payments)

Pros

• Predictable flat-rate pricing for processing
• Ideal for low-volume merchants
• No monthly fees
• Impressive feature set
• Affordable chip card readers
• Enables omnichannel selling

Cons

• Account stability issues
• Not suitable for high-risk industries

What Is Square?

Square is a great many things, but for this review, we’re focusing on Square Payments, a third-party payment service provider (also known as a PSP).

Square credit card processing is, without a doubt, the most feature-rich and advanced solution you can find without a monthly fee. There’s no monthly fee, no statement fees, and no monthly minimums. This is a great deal for many merchants, especially new ones who don’t have an established processing history.

It is important to note that Square Payments has one major drawback. Because it’s a third-party payment processor, Square is prone to terminating accounts when the risk department decides a merchant has proven to be too much of a liability. So, while you can get set up with a Square account almost immediately, you’ll be under scrutiny and have a higher chance of encountering a hold or termination than if you were to open a merchant account with a traditional processor.

That said, the majority of users actually won’t have any problems.

Square and Stripe are similar, and we think it’s better than similar mobile payment processors, such as PayAnywhere, but we encourage you to look at our top picks for small business credit card payment processing before making any final decisions.

Is Square Legit?

Square is as legitimate as any third-party processor can be. While there have been occasional issues with account freezes, Square features upfront pricing and highly-rated customer service while being an extremely popular and convenient choice for small business owners.

Square helped to revolutionize the payment processing game, and one of the biggest reasons for its popularity is its reliability. You can be up and selling in a matter of minutes, if not seconds, and the user-friendly interface makes it a no-brainer for small business owners who don’t want to overthink their payment processing.

Products & Services

Square’s processing features are set up to help small businesses thrive. Square makes it easy to take virtually any form of payment and easily syncs with its own hardware and software platforms, even while integrating with other popular POS systems. Square is also PCI-compliant and helps you get your money quickly with no hidden fees.

Integrated Payment Processing For POS & Invoicing

You can use Square’s built-in tools to send invoices or link up a third-party integration. Square’s invoicing tools support one-off and recurring invoices as well as installment payments.

More importantly, Square offers assistance with contract creation by providing a wide range of templates. You can set up default invoice templates based on your business’s information and attach all sorts of files, including purchase orders, images, and more.

Here are a few key features that Square Payments can handle:

• Save and update payment methods on file
• Add or remove bank account
• Card on file security
• Card-on-file email notifications
• One rate for tap, dip, or swipe payments
• PCI compliance
• Chargeback assistance
• Real-time reporting

If you’re interested in more information about invoicing, see how Square compares to QuickBooks.

Square Payment Gateway

You can use your own domain or purchase one through Square and get free hosting. If you have a website built already, and it’s powered by BigCommerce, WooCommerce, Weebly, Ecwid, Magento, or a handful of others, you can integrate Square directly to process payments.

Supported features for these integrations vary, so do your research if you want a seamless platform for selling both in-person and online.

Square Online Checkout is a flexible way to take payments from your shoppers, donors, or clients without necessarily having a full eCommerce site. We see this as an effort by Square to compete with PayPal and the ease and flexibility of the PayPal button.

You can add a payment button to an existing web page through a link or text or create a shoppable Instagram or Facebook post. This new feature also includes a QR code system that allows you to break your shop or outdoor pick-up area into zones. Customers can place an order and pay, and your team is updated on where to bring items, whether that’s in-store or local delivery.

Here are a few other key features:

• Single transactions
• Recurring transactions
• Multiparty transactions
• Afterpay installments
• Digital wallets
• ACH bank transfers
• Custom rates for large payment volume

Square Hardware

We’ll look briefly at Square’s hardware, but for a more detailed explanation — including options for bundled POS kits — check out our guide on Square POS hardware. Here are the main options:

• Basic Magstripe Card Reader: First reader, $0; subsequent readers, $10 (Square now offers both 3.5mm headphone jack and Lightning variants)
• Square Contactless & Chip Reader: $59; you’ll also get a free basic magstripe reader, and financing is available (check out our full Square Contactless & Chip Reader review)
• Square Stand With Contactless & Chip Reader: $149

Additionally, Square now offers two all-in-one POS devices with built-in card readers: Square Register and Square Terminal. Square Register is a customized piece of Android hardware designed to run Square Point of Sale. You can get the Register on its own for $799. Financing is available with reasonable terms, so you can spread that out over monthly payments.

Square Terminal is the ideal compromise if you think Square Register might be too much for your needs. This small credit card terminal features a smartphone-sized screen and runs Square Point of Sale. It also has integrated card readers for magstripe, chip card, and contactless transactions as well as a built-in receipt printer.

If you’d like a more detailed examination of the hardware options available, take a look at our complete Square Register review and then read our full Square Terminal review.

Fees & Rates

Square’s pricing is simple. It receives our top scores for both its affordability and its overall pricing model.

Most people will pay a flat rate of 2.6% + $0.10 for swiped/dipped/tapped transactions. With all of the new products and services Square has launched lately, things have gotten a little bit more complicated, but even so, you’ll find a flat, predictable rate that is consistent no matter what type of card you’re processing.

The only way you’ll get lower processing rates and a comparable suite of features is to open a merchant account and choose a compatible POS or eCommerce system. A few mobile processors offer lower rates, but their apps aren’t even close to being as robust as Square’s, and you don’t get any of the extra features that Square has built into its ecosystem. There’s a definite appeal to a system that will work seamlessly, guaranteed, with minimal effort to set up or maintain.

That said, as you start processing higher volumes or larger transactions, a merchant account is probably more stable. Depending on your processor, you might get a dedicated account rep to answer questions and resolve problems. But for a new merchant or a low-volume business, it’s hard to argue with Square’s sheer value. And we do want to note that even large businesses are finding value in staying with Square.

Other Costs For Using Square

Square also has separate processing fees for the growing CBD industry. Again, these rates are upfront and consistent, although they are a little higher as the industry is still considered high-risk. Here are those rates:

• Online: 3.8% + $0.30
• In-Person: 3.5% + $0.10
• Card-On-File: 4.4% + $0.15

Square does not have additional fees for chargeback fees or for being PCI compliant.

What’s New With Square?

One of the more exciting things about using Square is that it constantly updates its features and adds to its product line. Each year, if not each month, Square rolls out new improvements in the form of integrations or hardware, which continue to make things easier for small business owners. Here are some of their most recent developments over the last 12 months:

• Square Reader For Contactless & Chip Payments (Second Generation) Available: Square has unveiled a new version of its popular reader with a longer battery life and other features. It retails for $59.
• Square Tap To Pay For iPhone: This feature has been talked about for nearly a year and is now available on iPhones. You can simply ring up the sale on your Square mobile app, present your phone to your customers, and allow them to make a contactless payment via ApplePay or other methods.
• Accept Afterpay In-Person And Online: Square’s Afterpay allows customers to pay in no-interest installments while vendors are paid in full. Online payments are processed at 2.6% +$0.10 per transaction.
• New Customer Accounts For Square Online: A new update for Square Online users will allow buyers with a Square Online account to track the status of their orders, look at past orders, and edit Square Pay information.
• Square Banking: Sync up your payments, checking, and savings accounts with Square Banking for easy automation and tracking.
• New Restaurant Mobile POS Kit: Square has unveiled a new kit available for Square for Restaurants Plus users. It comes with a Samsung Galaxy A32 phone and Square Reader for contactless and chip, plus an insert guide. The kit costs $299.
• Square Stand Mount Available: Square has unveiled a new mount that can be affixed to countertops and walls that acts similarly to its previous Square Stand.

Sales & Advertising Transparency

Square does very well with transparency — everything the company says in its advertising and marketing checks out. There are no wacky sales gimmicks or promises of unbeatable rates, free rate reviews, etc. The “free” basic magstripe reader is actually free, and you can easily find the price for every aspect of Square’s service on a corresponding web page.

Square’s knowledgebase is also incredible, and you don’t even need an account to look through it. That’s great if you want to compare how specific features work before you open an account. The blog (called Townsquare) is full of content targeting merchants and businesses of all types, reflecting Square’s diverse customer base.

That’s why Square receives top scores for transparency — outranking competitors on its visibility and offerings.

Contract Length & Early Termination Fee

There is no early termination fee or locked-in contract with Square, which is true of almost all third-party processors. Every add-on service is month-to-month, and there’s a 30-day free trial for each, meaning there is no risk. Be warned that you must wait the full 30 days in your trial period before canceling or renewing your subscription.

As mentioned, Square charges monthly, so you’re never locked into its software products. It’s also easy to deactivate your Square account.

If you have financed hardware, those terms will apply regardless of whether you’re still using Square to process payments. But generally, Square offers a 30-day trial period for its hardware, wherein you can return the hardware with no penalty if you don’t like it.

Square Customer Service & Technical Support

You have a few ways to reach out to Square if you have a problem. Square now has a pop-up messaging window that asks you what you need and drills down to the right next steps. You can also message the Facebook page, use Twitter, or send Square an email to reach their customer service.

Here’s a closer look at your customer service options:

But if you’re in a pinch and need an answer right away, you probably want phone support, which is available Monday through Friday, 6 AM to 6 PM Pacific Time. Those aren’t the best hours, but they should work for the majority of merchants.

Square for Restaurants expanded support hours for the Plus and Premium plans to offer one-on-one implementation services and 24/7 customer support. Square is quick to brag that most other departments keep in close contact with the support team, including the executives. There’s also a useful site that will tell you whether any of Square’s services are having technical issues.

The online user manual probably answers most of your questions regarding the Square system. It is extensive and contains helpful screen captures and walkthroughs for every feature. The Square manual is, in my opinion, the gold standard for merchant services support pages.

And if that’s not enough to help you through, try Square’s Seller Community. Square reps and experienced merchants alike weigh in on questions, so it’s a good way to get an answer you can’t find elsewhere on the web.

Square Customer Reviews & Complaints

Given that Square is such a large platform serving new businesses, Square reviews from customers are overwhelmingly positive.

Negative Square Reviews & Complaints

There is a common theme to the Square complaints that do relate to merchant services, and they boil down to one issue: funding holds.

That said, when you start digging into Square complaints on other sites across the web, you’ll notice a few other trends. There are numerous complaints from customers who say a Square merchant scammed them. For instance, you’ll find many Square reviews and complaints about the Cash App.

This is a case where you simply can’t rely on the number of complaints in Square business reviews as an indicator of the quality of service.

Here are the main complaints about Square:

• Stability issues
• Funding holds
• Lack of features
• Fees

Positive Square Reviews & Testimonials

The majority of people are happy and reflect that in Square reviews. Here are the main things people like:

• Robust features
• Simple design
• Low fees
• Easy to open accounts

Final Verdict

So, is Square worth it?

Whether you are dabbling in sales for your side hustle or you want to find solutions to improve efficiency in your thriving store, Square could be an amazing tool. Even mid-sized to larger businesses can benefit from everything Square offers. As far as value goes, Square is tough to beat. Square’s pricing for card processing is competitive for a pay-as-you-go processor, and it can sometimes beat out or at least break even with interchange-plus pricing plans.

With features such as inventory management, a free and fully functional virtual terminal, advanced reporting, offline processing, recurring billing, marketing, online sales, and more, Square has more features than I’ve seen from any other no-monthly-fee provider. All of the free software puts merchants in a position to save money, especially with their suite of omnichannel tools that continue to improve.

Looking for something else? Check out our post on great alternatives to Square.

Square Payments FAQs

Credit Card Processor Review Methodology

We evaluate and test each payment processor that we review at Merchant Maverick, placing special emphasis on certain key characteristics in order to generate our granular ratings for merchant accounts and credit card processors.

For payment processing reviews, we use a 24-point rubric to evaluate the provider. First, we look at pricing structure – interchange plus, subscription-based, tiered, or hybrid – giving the most points to providers that provide fair, transparent pricing and docking those that rely on tiered models. Then we examine rates, the presence and transparency of early termination fees, and any additional fees.

We also look at contract length and fairness and test out sales staff and customer service channels ourselves to ensure that the company uses reputable, above-the-board sales techniques. Finally, we take the company’s online reputation into account, reading customer reviews and comments.

Read more about how we rate payment processors.

The Merchant Maverick Seal of Approval 🏆

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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square for yourself.

The Merchant Maverick Seal of Approval 🏆

Square	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square for yourself.