Square Review and Pricing

Why We Chose Square as the Best Credit Card Processor for Startups

Square is one of the most streamlined and intuitive credit card processors we reviewed, which is especially valuable for entrepreneurs who are new to accepting payments and need a system they can set up in minutes. We were impressed that Square keeps things simple with flat-rate pricing and no hidden markups, as competitors often add costs on top of their standard credit card processing fees. Those additional costs can eat into a new business’s tight margins and strict budget planning. 

Square’s well-known POS hardware and software tools are easy to use right out of the box and connect with Square’s ecosystem of nearly 1,000 partners, more than two-thirds of which have built integrations. These include popular e-commerce platforms and tools to set up an online store, giving startups flexibility to sell in person and online as they grow.

Square also allows merchants to accept credit card payments by phone, take payments with an iPhone, and accept Apple Pay and other near-field communication (NFC) payments. This level of payment method support makes it possible for new businesses to meet customer preferences without expensive add-ons.

For all these reasons and more, Square is our pick for the best credit card processor for startups.

Ease of Use

We found Square’s user interface logical, intuitive and easy to navigate during our review. The main dashboard provides easy access to reports, transactions, employee management and more, while the homepage displays key business statistics at a glance. Popular tools for managing customers, invoices and payments are accessible from the sidebar for quick navigation. Most business owners and their teams should be able to get up and running without a steep learning curve.

Square’s hardware is well-known for its flexibility and plug-and-play setup. Options range from simple mobile card readers to robust two-screen register systems, and devices are ready to use right out of the box with minimal setup required to start accepting payments.

The Square POS app also makes it easy to accept payments on the go with compatible Square hardware or Tap to Pay on a compatible smartphone. We like that the same platform works just as smoothly to accept mobile payments in restaurants, making mobile and tableside payments straightforward for staff.

Square Features

Square’s features are particularly well-suited for startups and small teams at the beginning of their business journey.

Virtual Terminal 

Square’s virtual terminal allows you to accept credit card payments, record cash transactions and even process checks from your laptop or desktop computer. We like that it securely stores payment information for recurring billing, helping subscription-based businesses streamline operations and save time.

Inventory Management

Square’s free software lets you manage and monitor your business’s inventory via the platform’s item library. When testing, we had the choice to add items manually or import and export inventory lists using comma-separated value (CSV) spreadsheets. We could also assign stock-keeping-unit (SKU) numbers, categories and other modifiers to organize products. We appreciate this flexibility, which will save valuable time and make it easy for businesses to configure their inventory system to match their specific team’s needs.

We were also impressed that Square lets you manage inventory by location and set alerts when stock falls to a preset level. These tools are vital for staying on top of ordering to avoid stockouts and prevent excess inventory. Businesses with access to Square’s advanced inventory tools can also create and manage purchase orders and vendors. Users can add up to 500 unique items to a single purchase order, add item variations and specify which location carries a new item.

SMS Invoicing

We like that Square lets businesses send invoices straight to customers’ phones via text message and accept mobile payments via SMS. There’s not much work for the customer, either. They can tap the link and pay from their smartphone. For a startup waiting on payments, that kind of convenience can make a real difference.

Reporting

Square’s data analytics and reporting features are designed to offer detailed insight into your business’s performance. We had access to preset reports created to track the following data:

• General sales trends
• Sales for different payment methods
• Sales of individual items
• Sales by employee
• Sales by each Square device
• Taxes
• Charge disputes

Square’s custom reporting tools let you choose the metrics, groupings and filters you want to analyze, making it easier to drill into your data to identify patterns, spot opportunities and address issues quickly.

E-commerce

No web design experience is necessary to use Square’s plug-and-play templates to quickly create an online store. To get started with Square’s online store features, all we had to do was answer two quick questions. First, we had to note whether customers would have items shipped, picked up in person or both, and then enter our business address and phone number. 

From there, we were taken to another dashboard where we could start customizing the site. Businesses can build a basic online store with Square Free, but some of the more appealing design features require an upgrade. Square Plus costs $49 per location per month and includes customizable themes, custom fonts, video and animations. Startups may find the free tools are all they need to get their first website off the ground.

We also had the choice to add Square’s payment processing functionality to an existing website or configure payment links for online checkout. Square’s payment processing links can even be used to accept donations, making them a convenient option for small-scale initiatives and nonprofit organizations.

Integrations

We were impressed by Square’s ecosystem of nearly 1,000 partners, more than two-thirds of which have built integrations with Square. For example, you can connect Square with many of the best accounting software platforms, such as QuickBooks, Xero and Zoho Books. Other popular integrations include Wix, WooCommerce, Linktree, ZipRecruiter, DoorDash and many more.

Security

Like other leading payment platforms, all Square products comply with Payment Card Industry Data Security Standards (PCI DSS). All software includes built-in, end-to-end encryption and safeguards to help protect against credit card fraud, giving business owners a secure solution right out of the box without additional PCI compliance fees.

Payouts

Under Square’s standard transfer schedule, payments generally arrive in your bank account the next business day. If you prefer instant transfers instead of waiting one to two business days, Square charges an additional 1.95 percent fee. This is a helpful option for startups that need quick access to funds to keep cash flow steady.

Artificial Intelligence (AI)

Square offers generative AI tools to help businesses work more efficiently. Features include automatically creating menus, adding backgrounds to product photos, generating content for marketing and websites and suggesting message replies.

Square AI was also helpful in our testing when we needed to find information quickly and weren’t sure how to navigate to a specific option. For instance, we could ask where to find a certain report, and Square AI would answer with the exact navigation path, which made it easier to get around a platform we were relatively new to using.

Square POS System

Unlike many other credit card processors, Square tightly integrates its payment processing with a full POS ecosystem. Its POS products and services — including card readers, terminals and a mobile app with industry-specific features — are designed to work together seamlessly, giving small businesses a complete payment and sales management solution from one provider. We like that this integration keeps setup simple, with no steep learning curve for new users.

Here’s an overview of the most valuable Square POS features new and growing businesses will appreciate.

Hardware

Square is popular for its affordable and versatile POS hardware lineup, which includes:

• Magnetic stripe reader: The first Square Reader for magstripe is free with a new Square account, and it can plug into a compatible smartphone or tablet to take credit card payments. Additional readers cost $10 each. It operates offline when you lose your signal and requires no battery, allowing uninterrupted sales even without internet access.
• Mobile card reader: Starting at $59, this Bluetooth-enabled reader accepts NFC and EMV chip card payments. Square can also process contactless payments from compatible smartphones without extra hardware, including mobile wallets like Apple Pay, Google Wallet and Samsung Wallet, as well as contactless cards.
• Dedicated kiosk and terminal devices: For $149 (or $14 per month for 12 months), you can purchase Square’s iPad-based Stand POS or its self-service Kiosk device for restaurants and coffee shops. The Kiosk app requires a Square Plus or Premium subscription and has an additional per-device monthly fee. A stand-alone credit card terminal is also available for $299 (or $27 per month for 12 months).
• Square Register: This dual-screen POS device costs $899 upfront or $44 per month for 24 months. It has built-in support for tap and dip payments, while swiped payments require a separate magstripe reader. We like that the customer-facing screen displays totals and payment instructions clearly, improving checkout speed and accuracy.
• Square Handheld: This portable POS costs $399 (or $37 per month for 12 months) and includes a barcode scanner, camera for item photos, contactless payment capability and a built-in dip slot. The all-day battery life makes it ideal for mobile businesses and events.
• Accessories: Businesses can connect accessories like barcode scanners, cash drawers, receipt printers, docks, cases and stands. Square also supports select third-party accessories, and its website lists all compatible models.

Hardware Rentals

Square is one of the few credit card processors that offers short-term POS equipment rentals. Through its partnership with Fello, you can rent a range of Square hardware and accessories for festivals, trade shows and other events. Rental terms are flexible, and equipment can be easily returned via UPS when your event ends.

Mobile App

Square’s free mobile app lets you run your storefront from anywhere. You can accept payments on your phone, create and send invoices, manage inventory and view reports. The app scores 4.8 in the Apple App Store and 4.6 in the Google Play Store, reflecting strong user ratings on both platforms. Not all credit card processors offer a mobile app, making this a valuable feature for mobile-focused businesses.

Online Ordering

Square offers free and paid plans for businesses to sell products, take orders and accept appointments online. Square Free includes a website builder, Square POS integration, fulfillment features, social media integration, multiple payment options and more. We especially like that startups can begin selling online without paying a monthly subscription fee.

Gift Cards

Square’s gift card tool helps merchants offer both physical and digital gift cards. Square’s software manages and redeems gift cards for you, and there are no monthly gift card subscription fees, long-term commitments or redemption fees. Square Free and Plus users pay a 2.5 percent load fee when funds are added to a gift card, while Square Premium waives this fee. When testing out Square gift cards, we could choose from numerous templates or upload our own design.

Retail and Restaurant POS Tools

Square stands out for offering industry-specific POS features for brick-and-mortar retailers and restaurants. The retail POS software lets businesses sell in-store and online, manage multiple locations and handle exchanges and returns.

For restaurants, Square provides a pickup-and-delivery system and the ability to accept payments tableside, at a cashier or online. Orders entered at the POS can sync directly with Square’s kitchen display system (KDS), keeping front-of-house and kitchen staff aligned. 

Square Pricing

Square offers three plans, starting with a free option that makes the platform especially accessible for startups. Square Plus and Premium add more advanced business tools and lower in-person processing rates. Here’s an overview: 

Square Plus and Premium each come with a 30-day free trial. There are no long-term contracts, so businesses can cancel or switch plans. All three plans include end-to-end encrypted payments, fraud prevention, next-day transfers and offline payments.

Credit Card Processing Fees

Square uses flat-rate processing, with rates that vary by plan:

Businesses processing more than $250,000 per year may qualify for custom pricing and processing fees.

Free and Paid Add-Ons

Square packs a lot of functionality in its three core plans, but some services and industry-specific tools cost extra. Notable additional costs include Square Payroll, restaurant tools and certain payment methods.

Implementation and Onboarding

We like that signing up for Square is fast and straightforward. The online application takes just a few minutes to complete and requires basic personal and business information for identity verification. Most accounts can be activated quickly, although Square may request additional information or conduct further review for some businesses.

Square includes one free magstripe reader for eligible new accounts, which Square says typically takes five to seven business days to arrive. If you need the device sooner, you can purchase one from an electronics retailer. When purchased through the Square Shop, the reader comes with a 30-day risk-free return policy.

Customer Support

Square offers a range of customer support options, although availability varies by plan. Square Free includes phone support from 6 a.m. to 6 p.m. PT Monday through Friday for the first 90 days, while Plus customers receive phone support during those hours for the life of their subscription. Premium customers get 24/7 phone support. We do like that business owners can still reach a live person, as many competitors have moved to fully automated systems.

All three plans also include chat and email support. For self-service help, Square’s website features a searchable knowledge base with detailed articles, step-by-step guides and answers to frequently asked questions. The Square Community offers product help, networking opportunities, event listings and discussion groups for peer-to-peer support.

Limitations

We found a few potential concerns businesses may want to consider before signing up with Square:

• Customer support: Square lacks some of the service features competitors offer. For example, 24/7 phone support is limited to Square Premium customers, while Free and Plus users have more limited phone support. If robust customer support is a top priority, check out our Brilliant POS review. This vendor offers integrated payment processing and 24/7/365 assistance.
• Risk management: Square may place reserves or payment limits on some accounts based on factors such as unusual processing activity, high dispute rates or other risk factors. Sudden changes in transaction volume or size can also trigger additional review. This is worth considering if your business has large or unpredictable transactions.
• Prohibited goods and services: Square doesn’t support every type of business or transaction, and accounts that violate its terms may be restricted or deactivated. We recommend reviewing Square’s terms of service before signing up to ensure the processor is a good fit for your business. If you need a processor more willing to work with a variety of business types, check out our Merchant One review.
• Onboarding: Businesses needing more in-depth onboarding support may find Square’s process limited. Lightspeed, for example, offers one-on-one onboarding training at no extra cost, which is a perk worth considering if you want or need personalized setup assistance. Read our Lightspeed review for more information.

Methodology

We researched and analyzed top payment services to find the best credit card processors for small businesses. We looked at demos, took advantage of free trials, examined user reviews carefully and interacted with each vendor’s customer service team. We also evaluated each company’s hardware and software offerings, as well as the fairness of their contract terms. When comparing rates and fees, we looked beyond standard pricing to assess total value. To identify the best credit card processor for startups, we paid close attention to affordability, the breadth of free features and the ease of application and setup.  

Bottom Line

We recommend Square for …

• Startups that want an affordable, all-in-one credit card processing and POS solution. 
• Brick-and-mortar operations, such as retailers, restaurants and appointment-based businesses, that value easy setup and flexibility.
• Businesses that want a free plan with core POS features and no long-term contract.

We don’t recommend Square for …

• High-volume businesses that may save money with a different processing model.
• Business owners who require extensive customer support.
• Merchants that sell goods or services Square doesn’t support.