Square is unique among merchant services providers in that it does payment processing and develops its own hardware. When you sign up with Square, you get access to all Square’s hardware (including the free POS app), a fixed per-fee transaction, and a stack of extra POS features and merchant services. Square is the top choice of millions of small and medium-sized businesses, particularly those in low-risk industries like retail and hospitality.
Monthly fee: None
Per swipe fee: 2.6% + $0.10
Setup fee: None
PCI compliance fee: None
Best for: Retail, restaurants, ecommerce, low-risk businesses
Square is unique among credit card processing companies in that it also develops and manufactures hardware. It offers five devices:
Square is the only payment processor to offer the Square point-of-sale system. The Square POS software is free to use, with no setup fees or monthly fees whatsoever. You only pay for credit card processing.
Highlights of Square POS include:
With the following features, it’s easy to see why Square markets itself as a one-stop run-your-business shop.
Square’s pricing structure is as straightforward and transparent as they come. While most credit card processors have tiered pricing, Square charges the same fixed fee of 2.6% + 10c per tap, dip, or swipe. It doesn’t matter what type of business you’re in, how many sales you make, or what card the customer uses – the price always stays the same. What’s more, there are no other fees to worry about. That means no monthly fees, no setup fees, no PCI compliance fees. Square really is as simple as can be.
The great thing about Square is it has no minimum monthly revenue requirement, no contracts, and no cancellation fees. The one downside is that Square has been known to freeze accounts of customers that it deems to be non-compliant. Therefore, if you’re in a high-risk business, Square probably isn’t for you.
Square, Inc. was founded in 2009 by Jack Dorsey (also co-founder and CEO of Twitter) and Jim McKelvey. It has been traded on the New York Stock Exchange since November 2015 and was generating $4.7 billion in revenues annually as of 2019. Based in San Francisco, Square serves businesses in the United States, Canada, Australia, Japan, and the United Kingdom.
Square offers 24/7 support to its customers via phone, email, live chat, and social media. Its website contains a massive library of resources, including how-to guides and video tutorials. It also hosts a ‘Seller Community’ where users can connect with fellow business owners and learn how to grow their business using Square.
There’s a reason Square is so popular with so many businesses: it is one of the few companies to offer a complete payment processing solution encompassing fixed pricing, hardware for every situation, and a full suite of merchant services. Square is and will continue to be the processor of choice for low risk SMBs.