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. Many competitors add various costs on top of their standard credit card processing fees, so we were impressed that Square keeps things simple with flat-rate interchange-plus pricing.

Square is willing to work with many different types of businesses, including those just getting off the ground. However, some types of businesses are not accepted by the company. For a full list, please consult Square’s article on the subject.

Moreover, Square’s well-known POS hardware and software are user-friendly and integrate seamlessly with the market’s most popular e-commerce platforms and hundreds of other third-party applications. 

We found that Square provides an outstanding payment solution for businesses that are just getting off the ground, which makes it our choice for the best credit card processor for startups. 

Square makes it easy for even the smallest businesses to accept credit cards. Source: Square

Ease of Use

We found Square’s user interface easy to navigate and intuitive during our review. The main dashboard is set up logically, with separate tabs for reports, transactions, employee management and more. The homepage displays key statistics that business owners will find valuable, including gross sales and top-selling items. Popular tools, such as the virtual terminal and invoicing functionality, are in the sidebar for quick access. 

We feel that business owners and their teams won’t have to contend with a steep learning curve to get up and running with Square’s software. 

Additionally, Square’s hardware is well-known among small businesses for its flexibility and user-friendliness. Customers have a wide range of options for POS hardware, ranging from simple mobile card readers to robust two-screen register systems. We like that Square’s hardware is ready to go right out of the box and minimal setup is needed to start accepting payments. 

Similarly, the Square POS app makes it easy to accept payments with a mobile phone while on the go by connecting Square hardware. The platform also makes it exceptionally easy to accept mobile payments in restaurants and other food service environments.

Square offers a feature-packed modern interface. Source: Square

Square Features

Square’s features are well-suited for startups and small teams at the beginning of their business journey. Here’s an overview of the features we found most valuable during our review. 

Virtual Terminal 

Square’s virtual terminal allows you to accept credit card payments and record cash transactions from your laptop or desktop computer. We think this is an excellent tool for businesses that typically are stuck with entering card details manually to accept payments over the phone. We like that you can save customer information in the virtual terminal for recurring payments, which should help subscription-based businesses streamline their operations. 

Inventory Management

Square’s free software lets you manage and monitor your business’s inventory. You can import and export your inventory list using comma-separated value spreadsheets and add stock-keeping-unit numbers and other modifiers. This flexibility allows you to manage and configure your inventory in the best way for your team’s needs. 

We were impressed that Square lets you set alerts when inventory falls to a preset level, helping you stay on top of ordering and avoid issues with both insufficient and excess inventory. You can even configure the platform to order supplies automatically when stock falls to a level you’ve specified in the dashboard. 

Square allows you to set alerts when your inventory hits a certain level. Source: Square

SMS Invoicing

We’re impressed that you can use Square’s virtual terminal to send invoices via text messages directly to customers. Customers can click a link and use their smartphones to pay on the spot. In an age when business is increasingly conducted on mobile devices, this feature can help startups reduce friction and secure sales more easily. 

Reporting

Square’s small business data analysis features help you gain insight into what’s happening in your company. We liked that Square’s preset reports help you track data, such as general sales trends, sales for different payment methods, sales of individual items, sales by employee, taxes and charge disputes. Square’s advanced reporting capabilities allow you to generate custom reports and drill down into your business’s data. 

Square’s reporting feature provides data-based insights about your business. Source: Square

E-commerce

Square comes with a full set of tools for configuring and deploying your e-commerce shop. No web design experience or skills are necessary to use Square’s plug-and-play templates to easily set up an online storefront. Square also offers payment links for online checkout even if you don’t have a website; you can also add Square payments to an existing website. 

We like how Square also offers its Square Payments service, which allows users to accept online payments without the need for an e-commerce site. With this feature, you can send a payment link directly to customers’ inboxes or social media accounts easily. These links can also be used to accept donations, which is ideal for small-scale initiatives and nonprofit organizations. 

Integrations

We were impressed that Square features hundreds of integrations, which is impressive compared with other platforms we reviewed. For example, you can connect with the best accounting software platforms, such as QuickBooks, Xero and Zoho Books. Other integrations include Wix, WooCommerce, Linktree, ZipRecruiter, DoorDash and many more. 

Security

E-commerce website security is crucial. Like competing mainstream platforms, all Square products are compliant with payment card industry (PCI) standards. All of Square’s software has end-to-end encryption, which is standard for the industry. This is an important consideration for business owners who want a secure solution right out of the box with no additional compliance concerns. 

Payouts

According to Square’s standard transfer schedule, payments will arrive in your bank account within one to two business days for transactions recorded Monday through Thursday. If you choose to have funds instantly deposited into your account instead of waiting the standard one or two days, the fee is an additional 1.75%. 

Artificial Intelligence (AI)

Square recently launched several new generative AI features to help businesses become more efficient. These features include creating menus, adding backgrounds to product photos, generating content for marketing and websites, suggesting replies in messages and auto-setting up business profiles. Compared to other credit card processors, Square leads the pack in offering business owners ways to leverage AI and streamline their operations.

Square POS System

Square is well regarded among small businesses for its ecosystem of integrated POS software and hardware. The company’s many POS products and services include card readers and terminals as well as a highly rated mobile app with industry-specific features. We like that these tools work well together and that small business owners won’t face a big learning curve when implementing Square’s POS system. Here is an overview of the most valuable Square POS features. 

Hardware

Square is popular for its budget-friendly POS hardware lineup. The most basic product is the Square magnetic stripe reader, which can plug into a smartphone’s charging port or headphone jack to take credit card payments. Customers can get one of these for free with their contract. There is also a mobile card reader, which starts at $59, that can accept card payments through NFC or a chip reader. As with other services, Square can also accept contactless payments through compatible smartphones with no extra hardware needed. 

For more robust POS functionality, consider the company’s dedicated kiosk and terminal devices. For $149 (or $14 per month over a 12-month financing plan), you can purchase Square’s iPad-based Stand POS or its Kiosk device. The stand is designed for traditional retail checkout setups while the kiosk is catered to self-service environments, such as restaurants and coffee shops. There is also a stand-alone credit card terminal available for $299 or $27 per month over 12 monthly installments. 

The company’s most robust hardware offering is the Square Register, which comes with two screens — one for the employee and one for the customer. It costs $799 upfront or $39 per month over 24 months. Although this is a more expensive option than Square’s other choices, we like how the second screen gives customers simple, clear information on their total price and instructions on when and how to pay with their card. This device supports chip, swipe and contactless card payments to ensure you can accommodate your customers’ preferences.

Square’s POS devices are affordable and integrate with the company’s software. Source: Square

Hardware Rentals

Square is one of the few credit card processors that offers POS equipment for short-term rental. Through its partnership with Fello, you can rent Square’s entire hardware lineup for festivals, trade shows and other events. You can specify the length of time that you wish to keep the equipment, which can be returned via UPS. 

Mobile App

Square’s free mobile apps allow you to manage your storefront even when you’re away from your business. You can accept payments on your phone, create and send invoices, manage inventory and view reports. Square’s mobile app scores an impressive 4.8 and 4.7 out of 5, respectively in the Apple and Google app stores, underscoring how much customers value this tool. Not all of Square’s competitors have a mobile app, making this feature a plus for mobile-focused businesses. 

Online Ordering

Square offers several sets of plans (both free and paid) for businesses to sell, take orders and accept appointments online. The free suite of tools includes a website builder, integration with Square POS, fulfillment tools, social media integration, various payment options and more. We especially like that Square supports unlimited items as part of its free suite; many other e-commerce website builders allow just a handful of items for sale on their free tiers. 

If online ordering is especially important to you, you also might want to check out our Toast review. While that platform is designed exclusively for restaurants, it also boasts powerful online ordering capabilities. 

Gift Cards

Square’s gift card tool helps merchants easily offer physical and digital gift cards. You can choose from numerous templates or upload your own; Square’s software can manage and redeem your business’s gift cards. 

Retail and Restaurant POS 

Square stands out for offering a few industry-specific features to help brick-and-mortar retailers and restaurants. The retail POS software allows you to accept nearly every payment type, both in-store and online. You can also use Square’s tools to handle exchanges and returns at your store. 

For restaurateurs, Square offers a pickup-and-delivery system and the ability to accept payments tableside, at a cashier and online. Another useful feature is the ability to keep track of customer orders at the POS and sync them with Square’s kitchen display system (KDS). 

The KDS syncs the POS system with what cooks see behind the scenes. Source: Square

Square Pricing

We were impressed that Square’s basic-tier software is free and includes all of the features discussed here. Retailers, restaurants and services-based businesses can upgrade to Square’s paid tier to access more advanced inventory management, reports, employee management and other features. The company offers a free-forever plan that carries no monthly costs other than processing fees. Paid plans start at $29 per month plus processing fees for the Plus package and a custom-priced Premium tier is also available for larger companies. 

Square’s paid tiers offer features designed for the unique needs of restaurants, retailers and other specialized businesses, such as barcode label printing, stock forecasts, vendor management dashboards and more. In the case of the Premium plan, Square can even offer subsidized processing fees for qualifying businesses. However, you will have to negotiate this with a sales representative. 

Processing Fees

In addition to monthly or annual software and hardware costs, Square charges transaction fees for credit card processing. This consists of a flat percentage of the transaction amount plus a small, fixed fee. These fees depend on the type of transaction and may be slightly lower if you are a paid subscriber. 

For credit card, debit card and contactless payments you accept in person, you’ll pay one of the following fees:

• Card-present transactions via swipe, chip or contactless methods: 2.6% plus 10 cents 
• Manually entered card payments: 3.5% plus 15 cents

For payments you accept without the card in hand, such as online, invoice and recurring payments, you’ll pay one of the following transaction fees: 

• Cards accepted using an e-commerce application programming interface and card-on-file payments: 2.9% plus 30 cents
• Cards accepted using the Square Online Store Premium Plan: 2.9% plus 30 cents
• Card transactions via Square Payment links: 3.3% plus 30 cents
• Subscription payments: 3.3% plus 30 cents

Chargeback Protection

Unlike some competitors, Square doesn’t have a chargeback fee. With that in mind, the company requires user input on how to handle the chargeback. If a customer initiates a chargeback, you must respond to Square’s information request with appropriate documentation promptly.

It is up to the customer’s bank to determine whether the transaction was legitimate; it is outside Square’s control. The company will put a hold on the disputed funds and it can take 90 days for your customer’s bank to review the claim and issue a verdict.

Hardware Costs

Square’s hardware options are impressive. You can choose from several Square card reader models and purchase processing hardware one piece at a time or as a bundle. At a minimum, you need a mobile device with the free Square POS app installed and a phone with an NFC chip. There is also a free magnetic stripe reader that can plug into your device’s charging port or headphone jack. You also may want to consider upgrading to an EMV-compliant reader that accepts chip cards to protect yourself from counterfeit credit card fraud liability.

Here are the card readers Square offers:

• Tap to Pay for iPhone and Android: This option requires no additional hardware; you need a device with an NFC reader. Most phones made in the past five years or so should have this functionality.
• Square Reader for magstripe: The first device is free and additional mobile credit card readers cost $10 each. The company mails this card reader to you when you open your account. It connects to your smartphone or tablet via the headphone jack or Lightning connector to accept magstripe cards.
• Square Reader for contactless and chip (first generation): This reader costs $59, plus $39 for a charging dock. This is a wireless device that connects via Bluetooth. You can use it to accept Apple Pay, Google Pay and Samsung Pay, as well as contactless cards and EMV chip cards. It ships with a free magstripe reader so you can accept every payment method. 
• Square Stand: $149 (or $14 per month for 12 months). This stand turns your iPad into a countertop checkout station. A magstripe card reader is built into the unit; it connects to the included contactless and chip reader and dock. 
• Square Terminal: $299 (or $27 per month for 12 months). Square’s newest card reader is an all-in-one terminal. It has a built-in screen, so you don’t need your own smartphone or tablet. It also has a built-in card reader and a receipt printer.
• Square Kiosk: $149 (or $14 per month for 12 months). This device uses an iPad for self-service environments, such as restaurants and coffee shops. Your customers can place their orders with this device and sync that data with your front-of-house and back-of-house operations. 
• Square Register: $799 (or $39 per month for 24 months). This countertop model has one touchscreen for you and one for your customer. It also has built-in card readers that accept every payment type: Magstripe cards, chip cards, contactless cards, Apple Pay, Google Pay and Samsung Pay. Square’s POS software is preinstalled.
• Accessories: Pricing varies. You can connect accessories to your card reader to create a countertop POS system. Options include barcode scanners, cash drawers, receipt printers, docks, cases and stands. Square is also compatible with some third-party hardware accessories and posts a list of Square-compatible hardware models on its website.

Implementation and Onboarding

We like that the sign-up for Square is straightforward. It takes only a few minutes to complete the application online for Square’s processing services and all you need is some basic information about you and your business. There are no credit checks and Square approves applications quickly. You can start accepting payments as soon as five minutes.

Your free Square card reader can take up to 10 business days to arrive. If you need the device immediately, you can purchase it at an electronics retailer. If your business requires more intricate onboarding guidance, read our Lightspeed review.

Customer Support

Square merchants can call the company Monday through Friday during extended business hours, from 9 a.m. to 9 p.m. Eastern time. Today, many companies have transitioned to automated support systems, so we like that business owners can get a person on the phone if they need help. You can also contact Square through email on a 24/7 basis, although response times are not immediate. 

If you like to research solutions yourself, you can visit Square’s website for a searchable knowledge base with detailed information, including answers to frequently asked questions (FAQs) and step-by-step instructions. Other resources include how-to guides, articles on popular small business topics, a blog and a community forum.

You can search Square support online for detailed information and instructions. Source: Square

Limitations

We found that Square lacks some of the customer service features its competitors offer. For example, it doesn’t provide a dedicated account rep or 24/7 phone support. If your business keeps irregular hours and you run into an issue, this could lead to frustrating wait times. At 24 to 48 hours, email response wait times are also a little longer than we’d like to see. If more personalized customer support is important to you, check our Brilliant review.

In addition, some merchants report having their funds or accounts frozen. This is a fairly common complaint for mobile credit card processors that are merchant aggregators because they tend to be more risk-averse than the full-service processors that provide merchant accounts. If Square flags a transaction as suspicious, such as an abnormally large sales ticket,  it may hold your funds. In addition, if your business offers items on Square’s list of prohibited goods and services, your account may be closed without notice.

We recommend reading Square’s terms of service before you sign up for an account to reduce your likelihood of experiencing these issues and to ensure the processor is a good fit for your business. 

Methodology

We researched and analyzed leading credit card processors 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 evaluated each company’s hardware and software offerings and the fairness of the contract terms to merchants. Additionally, we scrutinized and compared the rates and fees each processor charges. To identify the best credit card processor for startups, we paid particular 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 credit card processing and POS solution. 
• Brick-and-mortar businesses, such as retailers and restaurants, as well as appointment-based businesses.

We don’t recommend Square for …

• Larger businesses that are seeking the lowest processing rates. 
• Business owners who require extensive customer support. 

Skye Schooley contributed to this review.