Square Payments provides users with mobile payment processing and aggregated merchant services. Its features and solutions include next-day and instant deposits, instant setup with no application or approval process, built-in security, invoicing, and chargeback management. Fees per transaction start at 2.6% + 10¢, and it’s best for brick-and-mortar, mobile, and/or multichannel merchants that process less than $15,000 per month.
Square Payments Pros and Cons
Easy to set up
Flimsy protection against fraud and disputes
Seamless third-party integrations
Mixed reviews on efficiency of customer support
Hardware can be a bit pricey for some
Who Square Payments is Best For
- Brick-and-mortar businesses that process in-person transactions: You can download the software for free and start accepting payments as soon as you get your Square Reader. This device is portable, and it allows you to go to your customers to process payments.
- Businesses that are on-the-go: Square Payments offers a lot of options for mobile and online payment transactions. If your business calls for you to stay on the move, then you may process your payments via your website or mobile app.
- Multichannel merchants: The software provides a platform for you to manage your online store across all sales channels and process payments in one place. This may be helpful for low-volume businesses since separate accounts and additional setup are not required.
Square Payments Pricing
Square Payments’ pricing guide lists transaction fees that start at 2.6% + 10¢, and actual rates depend on your customers’ payment type: Card-Present or Card-Not-Present (your free account enables you to accept both). The main difference between the two is the need for additional hardware. There are no monthly fees, processing requirements, and payment card industry (PCI) fees.
2.6% + 10¢
Card-Not-Present (Keyed-In or Card on File)
3.5% + 15¢
Card-Not-Present (Ecommerce and Invoice)
2.9% + 30¢
For taking in-person payments, Square Payments provides you with multiple hardware options. The software included in any of the hardware packages varies depending on your business needs, and some may incur additional costs.
Square Reader for magstripe
First is free,
$10 for every additional one
Square Reader for contactless and chip*
Square Stand for contactless and chip
$199 each or $18 per month
$299 each or $27 per month
$799 each or $39 per month
*Purchasing one of the chip readers is highly recommended so that you can be EMV-compliant.
You may also upgrade your account with extra tools such as employee payroll ($29 per month + $5 per person paid, per month), contractor payroll ($5 per person paid, per month), email marketing (starts at $15 per month), and/or loyalty (starts at $45 per month).
Square Payments Alternatives 2020
Square Payments Features
The provider offers solutions for streamlining the process of collecting payment for sold products and services—both in-person and online. Let’s take a look at some of Square Payments’ features below.
Square Dashboard: One place where you can manage disputes, modify tax and receipt settings, track your team and your inventory, and more.
POS: Square Payments integrates with Square POS, Square Retail, and Square Restaurant, for a more streamlined purchasing and payment processing experience.
Invoicing: You can create, send, and track invoices online or via Square Payments’ iOS and Android apps. You can also utilize automatic payment reminders, advanced reporting, and the ability to set up recurring billing.
Ecommerce: This enables you to sell your products online, manage shipping and delivery, offer curbside pickup, sell on social media, offer discounts and gift cards, and more.
Site builder: If you’re an online merchant, then you can build and publish an online store—even without coding knowledge—by accessing Square Payments’ drag-and-drop site builder.
Customer relationship management (CRM): You are given access to the customer directory where you’ll find all customer information for use in marketing, analytics, and more. Customers are also given a platform to leave feedback whenever needed.
Customer support: You may send an email anytime or reach out to Square Payments’ in-house phone support team from 6 a.m. to 6 p.m. Pacific time.
Fund deposits: Money is credited to your bank account as soon as the next business day. For an extra fee, you may opt for same-day or instant transfers to your bank account.
Data security: Among other things, Square Payments uses machine learning to keep track of all your transactions and adjusts accordingly in case of a new trend in fraud. If there’s any unusual activity, then a team of fraud experts will alert you as soon as possible. Square Payments ensures that your data is safe and secure by keeping its system and processes PCI-compliant. Moreover, all transactions are encrypted, and security is further enhanced by two-step verification and employee permissions.
Most Helpful Square Payments Reviews
Users who left positive Square Payments reviews appreciate how the software is easy to set up and integrates with the programs they’re already using. On the flip side, users who left negative reviews shared that they had bad experiences with mishandled customer disputes and unhelpful customer support.
Quick and easy setup
“Square makes it easy to start collecting payments. I love Square because it is very easy to set up a business profile and start bringing in the money. I have been a user of Square for about three years now, and I love how easy it is to use—my business has grown a ton because of it. I love that I am able to send recurring invoices to my customers so that I no longer have to remember to get paid.”
—JaCoby Marston, CPA
Not adept at preventing fraud and disputes
“I haven’t had a problem for three years’ worth of transactions until yesterday when I was informed that a customer (who received our products) is disputing the charge because it was magstriped as opposed to read via chip. Now we lost products PLUS the accompanying cost of them. All the while, Square wants to charge us $50 for a chip reader. This is scamming of the highest form.”
Square Payments Frequently Asked Questions (FAQs)
Which third-party applications can Square Payments integrate with?
Prebuilt integrations include Magento, BigCommerce, WooCommerce, GoDaddy, Ecwid, and Wix. It also integrates with other Square products such as Square POS.
What businesses can best benefit from using Square Payments?
Square Payments is most used in the following industries: retail, coffee shops, bars and lounges, health and fitness, counter service, and home and repair.
Can users transact both in-person and online?
Yes, they can. You can build your custom solution with the help of Square Payments’ application programming interface (API), among other options for design and integration.
Our Top Payment Gateway Picks
If you aren’t sure if Square Payments is right for you, then this article on the best payment gateways is a review of our top choices. Our team looked at a variety of solutions and narrowed our recommendations down based on the fees, security, ease of use and set up, sales channel served, and features among others.