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Square is one of the best-known credit card processing companies on the market today thanks in part to the Square card reader that allows customers to accept credit cards straight from their mobile devices. Businesses of all sizes use the payment processing and point-of-sale (POS) platform online and in person. In this guide, we’ll break down Square pricing and fees as well as how they compare with their competitors, so you can decide if it’s right for you.
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Who Is Square Best For?
Square has been widely popular with small businesses since it launched in 2009 and it is easy to see why. The company is named after the square-shaped mobile card reader it gives its customers for free allowing them to take payments anywhere. The company offers an all-in-one credit card processing service that is quick to set up and easy to use. Companies can begin taking credit card payments in minutes with Square’s free mobile credit card reader that plugs into any smartphone or tablet and free POS software. There are no contracts, minimum requirements or upfront costs, making Square ideal for new businesses that do not want to invest money into a credit card processing system.
Square Plans and Pricing
Payment processing companies are notorious for issuing multiple fees levied by card companies, banks and compliance standards leaving business owners confused about what they are paying. Square eliminates all that with a flat transaction fee structure. Square doesn’t charge any startup, subscription or refund fees. Square also provides one free Square Reader for iPhone or Android to allow companies to take payments on the go. Each additional reader is $10.
Credit Card Payments
Square charges 2.6% plus 10 cents per transaction every time a customer taps, dips or swipes their card during an in-person transaction. This includes prepaid gift cards, cards, such as Visa, Mastercard, American Express, Discover and JCB, and mobile wallets, such as Apple Pay, Google Pay and Samsung Pay.
Square charges a transaction fee of 3.5% plus 15 cents per transaction for in-person payments where the card is keyed in manually, transactions that are taken virtually or from cards on file.
Square charges 2.9% plus 30 cents for purchases made through an online store, online checkout, e-commerce application programming interface (API) or online invoices.
Square’s credit card processing fees are not the cheapest on the market. It is good to note, however, that activation, the POS app, chargebacks, support, advanced reporting tools, Payment Card Industry (PCI) compliance, next-business day deposits and the first square card reader are all free.
Square also offers custom pricing plans for companies that process more than $250,000 in card sales and have an average ticket size of more than $15. Business owners interested in custom packages must contact the sales department for an estimate. For faster access to money, businesses can also instantly transfer up to $10,000 at a cost of 1.5 percent of the transaction plus the standard card processing fee.
Square Alternatives
While Square is immensely popular, it is not without faults. Not to worry, Square is not the only credit card processing company on the market. The Top Five Square Competitors of 2024 include PayPal, Stripe and Payment Depot.
Transaction fees for in-person swiped cards are similar for both Stripe and Square. However, Stripe charges significantly less for keyed transactions (Square charges 3.5% plus 15 cents while Stripe charges 2.9% plus 30 cents). Another difference is while Square offers several hardware options for those who take in-person payments, Stripe has a developer-friendly payment platform offering more than 450 extensions for online businesses that want to customize this customer’s checkout experience.
When comparing Square to PayPal, Square takes the cake for being suited for in-person and mobile transactions while PayPal is a better fit for e-commerce businesses. It is hard to make an online purchase these days without coming across PayPal as a payment option. Because of its name recognition, consumers are more likely to follow through with an online purchase using PayPal. If you have a high-volume business, Payment Depot might be your best bet. The credit card processing company operates on a membership basis and does not have a minimum processing amount making it a good fit for high-volume businesses.
POS Hardware
While Square is great for online businesses, it also has several hardware options for those running an in-person, brick-and-mortar or mobile business. The software is free and can be
downloaded from the Google Play store and Apple App Store. The app stores also push out software updates on a regular basis. Some of the most popular Square hardware items are its card reader, POS terminal, stand for iPads and register.
| Square Reader | Square POS Terminal | Square Stand for iPads | Square Register | |
|---|---|---|---|---|
Prices From | First one free, $10 for each additional | $299 | $149 | $799 |
About | Works with Android and iPhones | Portable POS Terminal with built-in payments and receipt printer | Comes with integrated contactless card reader and ability to add cash drawer | Fully integrated POS system; no apps or tablets required |
Best for | Mobile businesses | Restaurants | Retail | All businesses |
Other Square Services
Square is best known for its payment processing service. However, throughout the years the company’s platform has grown to include business management, online selling, payroll and marketing. Some of the most popular services are:
- Square Payroll: Starting at $35 per month plus $5 per month, per employee, the subscription-based service is a full-service payroll software that calculates payments, payroll and taxes automatically.
- Square Invoicing: With both a free plan and a plan starting at $20 per month, Square Invoicing is a great fit for client-based businesses.
- Square Online: With four plans including a free one, Square Online offers businesses everything they need to build and launch an e-commerce website.
Featured Partners
Advertisem*nt
1
Payment Depot
Free Trial
No
Offers
$0 Setup & No Cancellation Fees
Pricing
Customized Interchange+ Pricing - Rates as low as 0.2% - 1.95%
2
Paysafe
Free Trial
No
Offers
SAVE or get a $200 gift card + FREE payment equipment*
Pricing
Industry-low rates starting at $0.15 batch fee + 0% Cash Discount Plans available
3
Stax
Free Trial
No
Offers
First Month Free
Pricing
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
4
ProMerchant
Free Trial
No
Offers
$0 Setup and Net Zero Processing Option available
Pricing
$7.95/month and Net Zero Processing Option or 0.35% per transaction
Bottom Line
Square is an easy decision for small and medium-sized businesses (SMBs). Transaction fees are easy to understand, the pay-as-you-go model does not include monthly fees, the platform includes many free features, such as a card reader, and the software is user-friendly meaning anyone on the team will be able to use it without much training. Large businesses might shy away from Square because the cost of using Square could scale up at a faster rate than competitors who charge a monthly fee to process unlimited sales.
Frequently Asked Questions (FAQs)
Why does my business need credit card processing?
According to a study by the American Bankers Association in May 2021, there were more than 320 million credit card accounts active in the United States in 2020. This means that the vast majority of American adults hold at least one account, if not more. With credit cards being so common, not having the ability to accept them means a huge potential for missed sales opportunities.
What does Square do?
Square offers a host of business tools, but its most popular is its POS solution. This allows businesses to take credit card payments in person, online, over the phone or remotely.
How much does Square cost per month?
Square does not charge a monthly or annual fee. Instead, the company makes money through a percentage of every credit card transaction it processes. Square charges 2.6% plus 10 cents for most in-person transactions. However, if the card must be entered manually, it charges 3.5% plus 15 cents per transaction. Square also charges 2.9% plus 30 cents for online purchases.
Does Square offer fraud protection?
Square monitors all payment activity automatically and provides alerts on suspicious activity through both algorithmic automation and human observation. According to the company, Square constantly evolves its fraud detection policies to keep customers as safe as possible.
Does Square support third-party integrations?
Square supports multiple third-party integrations via its Square App Marketplace. You might have to pay for those integrations separately, depending on which apps you choose.
Is Square a good credit card processing company?
Square was named one of the top 10 credit card processing companies in 2024. It is especially popular with small businesses because of its ease of use, free mobile card reader and lack of monthly fees.
Is Square secure?
Square is Payment Card Industry Data Security Standard (PCI DSS) compliant and its products do not save payment card data. All data is kept on the vendor server in encrypted form. Additionally, a customer’s full credit card number is never displayed even to the seller.
