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Merchant One vs. Square Comparison
Which payment processor should you choose for your business: Merchant One or Square?
Table of Contents
Merchant One and Square are two of the best credit card processors out there, but which is better? Below, we compare these two payment processors side by side to help you determine which is best for your business.
Merchant One vs. Square Highlights
| Merchant One | Square |
|---|---|---|
Monthly fee | $13.95 per month, plus possible early-termination and PCI compliance fees | Free for basic plan; more advanced functionality costs between $29 and $79 per month |
Payment processing cost |
|
|
Ease of use (software) | Easy and intuitive | Easy and intuitive; industry-specific versions available for restaurants and retailers |
POS system (hardware) | Third-party hardware, including Clover products that can be used with other processors | Attractive and functional, proprietary hardware incompatible with other processors |
Customer service | 24/7 phone support, plus email and text-based support; dedicated account manager | Phone support weekdays between 6 a.m. and 6 p.m. PT; email support response 24-48 hours; chat support seven days a week; social media support and online knowledge base also available |
Who Is Merchant One for?
Merchant One is a good choice for businesses that:
- Need POS system hardware: Although it doesn’t have a POS system of its own, Merchant One offers third-party POS hardware, including Clover.
- Are on a tight budget: Since Merchant One has interchange plus pricing, its processing rates are lower than most payment processors we reviewed. There is no per transaction fee, so it is less expensive for high- and low-volume businesses.
- Want exceptional customer service: We were impressed with the quality of customer service Merchant One offered, including 24/7 support and a dedicated account manager.
- Have modest credit scores: Merchant One boasts a 98% approval rate, making it a good choice for business owners with less-than-perfect credit.
Learn more in our comprehensive review of Merchant One.
The FD-130 credit card reader is one of several readers that Merchant One gives new merchants for free when they open a merchant account. (Source: National Bankcard)
Who Is Square for?
Square is a good choice for businesses that:
- Want to get started quickly and easily: Square doesn’t require a credit check or documentation for businesses to get started processing credit cards. That makes it a great choice for new businesses and startups without much transaction history.
- Don’t want to pay monthly fees: Square’s basic plan comes with no monthly fees. However, there are higher tier plans that start at $29 per month which offer advanced POS system functionality.
- Want an included POS system: If you want a top POS system, it is included in the basic plan for no monthly fee. Other features, such as inventory management, marketing, and payroll and employee scheduling, cost extra.
- Want user-friendly, cost-effective hardware: The industry-specific POS options provide a robust solution to retail, restaurants and appointment-based businesses at a price lower than other payment processors.
Learn more in our complete review of Square.
Merchant One vs. Square Comparison
Here’s how Merchant One and Square stack up on important criteria when choosing a payment processor.
Monthly fee
Merchant One
Merchant One’s monthly fee is currently $13.95. While reasonable given its low processing fees, even this small fee can hinder startup businesses that have little revenue coming in.
Square
Square’s base plan has no monthly fee and includes a lot of functionality, including general POS, invoicing, virtual terminal, online checkout and employee management. Other payment processors typically charge a fee for these features.
Square does offer higher tiers and add-ons for additional fees. These include:
- Customer loyalty program: $45 per month
- Email marketing: $15 per month
- Payroll: $35 per month plus $6 per employee
Payment processing costs
Merchant One
Merchant One has low interchange-plus pricing. This means there is a small upcharge on top of the interchange rate, which is set by and paid to each type of credit card provider (Visa, Mastercard, Discover, etc.).
Merchant One’s upcharges (the “plus” in interchange-plus) are as follows:
- Card present transactions: Ranges from 0.29% to 1.55%
- Card-not-present transactions: Ranges from 0.29% to 1.99%
Many other credit card processors, including Square, include the interchange rate and their markup into one combined rate, which is generally higher than Merchant One’s interchange-plus.
Square
Square’s payment processing rate depends on both whether the card is physically present, which is standard, and on the Square service that is used.
- Card present transactions: 2.6% plus $0.10 per transaction. This is the rate regardless of which credit card is used, what type of business it is or any special card characteristics.
- Card-not-present transactions:
- For Square Invoices or Square Online Store, the rate is 2.9% plus $0.30 per transaction.
- For Square Online Store Premium, you get a lower rate of 2.6% plus $0.30 per transaction.
- For any keyed-in transactions or card-on-file recurring charges, the rate is 3.5% plus $0.15 per transaction.
Ease of use
Merchant One
We found Merchant One’s back-end software is easy to use. It has clear labeling of sections and functions, allowing you to run reports, use the virtual terminal and add customer information.
A benefit of Merchant One is that it offers Clover POS systems, which is a highly user-friendly system. For more details on all the platform offers, check out our review of Clover.
Merchant One promotes its Clover products but is also compatible with other readers. (Source: Merchant One)
Square
Square’s software is integrated with its general POS system, so you have everything in one interface. We found it intuitive, requiring little to no training to navigate effectively.
In addition, Square easily integrates with many popular e-commerce platforms, making it a suitable choice for online businesses.
The Square interface is sleek and simple to navigate. (Source: Square)
POS system hardware
Merchant One
Merchant One offers third-party POS system hardware, but especially touts its partnership with Clover. With Clover hardware, you’ll get:
- Nice-looking and fully functional POS system.
- Choice of fixed POS terminal, mini tablets and handheld devices.
- The ability to accept digital wallets, such as Apple Pay.
- The ability to process NFC payments.
- The ability to accept PIN entries for debit cards.
Clover equipment is also compatible with multiple payment processors, which so you can switch in the future without repurchasing equipment.
Square
Square’s POS system and equipment are just as attractive and functional as Clover’s. It combines all payment processing functions, like the virtual terminal and reporting, with the other features.
However, Square’s POS system hardware is not compatible with other payment processors, so if you switch in the future you’ll need new hardware too.
Square offers a sleek customer-facing interface. Source: Square
Customer service
Merchant One
Merchant One provides 24/7 phone support plus email and text-based support.
Most importantly, though, Merchant One gives each merchant a dedicated account manager. We like that each customer has a single point of contact to streamline their communication with the company, resolving problems and answering questions more quickly.
Square
Square has limited hours for phone support: Monday through Friday, 6 a.m. to 6 p.m. PT. Square support is not available on weekends or early morning hours on the East Coast.
Square also offers email support, with a response expected between 24 and 48 hours, and online chat support seven days a week, from 6 a.m. to 6 p.m. PT.
Support is also available over social media, and there is an online knowledge base for self-guided learning and troubleshooting.
Merchant One vs. Square Summary
Merchant One: Best for Established and High-Volume Businesses
Due to its interchange-plus pricing, Merchant One is more cost-effective for high-volume businesses who process payments frequently.
Merchant One also offers a dedicated account rep that can provide a quick resolution to any issues, minimizing disruptions and downtime that may take a toll on a company’s bottom line.
The affordable pricing paired with the exceptional customer service is a great combination for established ventures in virtually any industry.
Square: Best for Startup Retailers and Restaurants
Startups and newer businesses, especially those in the retail or restaurant space, can get started quickly with Square. All that’s needed is to fill out an easy application form and wait for approval that’s essentially guaranteed.
Square offers a free plan, which comes with plenty of useful features plus affordable, industry-specific POS systems for retail and restaurant businesses.
Since startups can always upgrade to a paid plan once their needs become more advanced, Square is a highly scalable solution perfect for new businesses on a budget.
FAQs
Anna Baluch contributed to this article.
