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Square

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5.9

Overall Score

Author: Jenna Vasquez

LAST UPDATED: February 3rd, 2021

Square is a point of sale (POS) company that specializes in streamlined technology and services. Since its founding in 2009, Square has expanded its technology to include helpful software and hardware, such as the free Square Point of Sale app, which allows companies to manage different aspects of the business from inventory management and real-time data, to customer directories and digital receipts. Square’s chip card and no-contact payment hardware allows businesses to accept payments with all major credit cards and well as NFC payments and gift cards. Additionally, Square does not charge any monthly fees, unlike many other POS companies.

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The Good

  • Clear Pricing
  • Transaction Fees
  • Payment Processing
  • Software Options
  • Hardware Options
  • Sqaure Card Reader
  • Simplicity

Clear Pricing

Square offers a simple and clear fee structure whenever a card is used. For swiping, dipping (inserting the card into the reader), or tapping a card Square has a 2.75% flat rate regardless of the amount. For transactions where the consumer isn’t present, or the Square user is away from the reader, Square charges a 3.5% + $0.15 fee. These transactions are typically considered riskier by credit card companies since the customer is not present at the time the card is processed. For billing consumers through Square invoices or an eCommerce API, the fee is 2.9% + $0.30. Square has no hidden fees. The only fees charged are the flat rate processing fees involved with each transaction. There are no fees associated with customers paying with cash or check since Square doesn’t process those forms of payment.

Transaction Fees

Square charges a 2.75% fee of the total transaction amount for any of these types of payments:

  • Swiped Magstripe Card
  • Swiped or Inserted Chip Card
  • Prepaid Gift Cards
  • Point-of-Sale API Swiped or Inserted Payments
  • Contactless (NFC) Payments

For manually entered transactions Square has a 3.5% + $0.15 fee for the following payment types:

  • Card on File Transaction
  • Manually Keyed-In Card Payments
  • Point-of-Sale API Keyed-In Payments
  • Virtual Terminal Payments

Customer fees will be $2.9% + $0.30 of the total amount when using any of these payment types:

  • Invoices
  • Online Store
  • Square eCommerce API
  • eCommerce Card on File Payments

Payment Processing

Square works to provide a number of options for payment processing to make sure that sales are not limited. Advances in technology have opened the door for payment processing and a number of new methods are now being used consistently. For merchants using online square software for websites, online payments can be received, tracked, and recorded. For those with in-store locations, square's pairing of hardware and software can accept mobile payments with both Apple and Android pay, contactless NFC payments, EMV chip payments, magstripe swipe payments, and more.

Software Options

Square POS offers a wide variety of integrations for those seeking POS services, and the features within those different options is equally impressive. Notable Square software features and integrations now include the following:

  • The ability to send square invoices
  • Selling gift cards
  • Getting private customer feedback
  • Creating customer profiles
  • Integrate with accounting software
  • Integrating with the square App and other useful Apps
  • Integrating with other POS services
  • Performing email marketing

Hardware Options

In order to ensure the satisfaction of merchants in a number of different industries, a wide array of hardware options are available.

  • Square Register: This POS hardware is sold with two pieces.  The screen (control panel) is for the employee to manage payments of items purchased.  They can track what items in their current inventory have been purchased to know how much they have left. The second piece of equipment is the POS terminal.  This terminal is what allows businesses to accept payments.  It is equipped with a chip card reader, magstripe reader, and a no-contact scanner for payments from a mobile device.  The retail value for this product is $999.00 with free shipping.  
  • iPad POS: This platform functions well for retail stores, small businesses, and restaurants.  It can be used by simply downloading a free POS app on an iPad and entering the necessary information (business, inventory, pricing, etc.).  If you do not have an iPad but are wanting to use this iPad POS software, you can purchase an iPad from Square to accompany the stand the POS terminal.  The stand, dock, and the chip card and contactless reader can be purchased for $199.00.  If you would like to purchase an iPad as well, it will cost an additional $329.00.  
  • Android POS: Similar to the iPad POS, there is a free POS app for android users as well.  It can be downloaded online and is equipped with the same integrations as the iPad POS app.  It can be used on a phone or a tablet.
  • Square Terminal: As an all-in-one device, this POS hardware is a great option for a small business.  It has a magstripe reader, a chip card reader, a contactless (NFC) reader, and a receipt printer.  This product has a retail value of $399.00.  If you would like to order extra receipt paper, it will cost $20 for 20 rolls of paper.  

Square Card Reader

One of the key components of a Point of Sale solution during recent years is a credit card reader. The Square reader offers a variety of different options for credit card payments. Some of these are: the chip card reader, the contactless card reader, and the square card reader. The square card reader can be used for card that require a swipe in order to register payment. EMV chip cards can be read by the chip card reader. EMV chip has become one of the most common methods of payment and it is important that companies have the appropriate hardware to facilitate these types of payments.

Though chip cards started the wave of change in secure payment processing, contactless payments are now very prominent as well. having a contactless card reader makes transactions and credit card processing faster and in a number of ways, more secure.

Simplicity

Square POS prides itself on providing simple technology that is easy for both businesses and consumers to use requiring only an internet connection.

Additional Features

Square has many POS terminals for small business, comparable to the Shopify POS, there are bank account integrations, inventory management, credit card (and debit card) payments for business owners, and customer service for your square account. 

If you have a mobile device and an internet connection, there are additional features you can implement with a square card and magstripe card reader. This POS hardware is beneficial for mobile sale POS. There are even loyalty programs you can implement with this feature. You can check your money within the app on a dashboard, and there is additional hardware which includes a receipt printer. 

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The Bad

  • No Warranties
  • Funding Holds

No Warranties

Square’s terms and conditions specify that the technology comes “as is”, and that if a business feels that Square’s services are not providing what they hoped, there is still no warranty. However, this is to be expected with many businesses.

Funding Holds

Although Square boasts many positives, complaints still arise from retailers. A common customer complaint is that Square may hold merchant funds. Because Square uses aggressive fraud prevention tactics, the technology raises a general red flag at times, which can make businesses unable to access their income for a period. This may be because Square does not disclose the risks involved in third-party processing. Businesses experiencing this problem will receive a notification that payments have violated the terms of service or that the company model is unsupported or high-risk.

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The Bottom Line

Since its start in 2009, Square has grown to provide a wide variety of options for those seeking POS services. Its hardware and software is top-notch, especially for the price. Square’s services are accessible and helpful for all types of businesses, from startups to large companies, making it a competitive POS option.

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4.5

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73 Reviews

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4%

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jeanetha brown douglas Charlottesville, VA

Square is a very innovative system for my business however they miss the mark with the square capital loans. I am in need of funding to expand my business and cant receive help no live person to talk to so what good is offering loans if you cant request them ?

8 years ago

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Cristiana Orem, UT

I worked in a retail industry for a while and I can say that Square is the dream coming thru for people that works with cashiers it is modern and easy to use. Most of restaurants that I'm going to are using Square as a point of sales tool. From my experience it is fast and I never had problem with.

7 years ago