Is Square right for your small business? Read our Square review for what you need to know about the latest features, pricing, pros and cons.
Square is a payment processing and point-of-sale (POS) platform used by businesses of all sizes, from brand-new startups to large multistore operations. Square offers an affordable fee structure for small businesses or startups, which is a nice perk for those whose turnover varies from month to month. There’s much to like in this affordable, user-friendly POS.
Pros
- Free to start
- No monthly fees in Basic Plan
- Wide range of hardware to choose from
Cons
- Account can freeze due to irregular activity
- Not cost-effective for high-volume transactions
- Higher transaction fees than some competitors
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Table of Contents
Square at a glance
Square is popular among small and mid-sized businesses because it has no monthly fees for the basic plan and a flat transaction fee structure. This can make it ideal for brand-new businesses that want a solid POS platform without spending much upfront.
Square processing fees
Payment processing can be a big headache for businesses because there are multiple fees levied by card companies, banks and compliance standards. Square’s platform handles all of these for you and only requires you to pay them a small fee for each transaction.
Card-present payments
You pay 1.75% per transaction for contactless card payments accepted using a Square Reader, Register, Stand, Terminal, Retail Plus or Square for Restaurants.
Keyed payments
If you key in the card details manually or from a file, you pay a transaction fee of 2.5% per transaction.
For purchases made via eCommerce API, Square Online Store, Square Online Checkout or online invoicing, you pay 1.4% plus 25 pence for UK cards and 2.5% plus 25 pence for non-UK cards.
Hardware and software
Square provides multiple hardware options for its service. The software for all of them is free. In many cases, you can download it from Google Play Store and Apple App Store. The software updates are also pushed via the app stores.
- Square Reader for contactless and chip: This reader accepts payments via chip as well as contactless methods such as Apple Pay and Google Pay. This device, which starts at £19 (+VAT), is incredibly useful in a post-pandemic business landscape where contactless payment is on the rise. If you also need the charging dock, the set costs £29 (+VAT)
- Square Stand for contactless and chip: This device plugs into your iPad and converts it into a checkout station that can be used anywhere in your shop. It costs £99 (+VAT) or £17 per month for 6 months
- Square Terminal: The latest device from Square comes with a built-in display, magstripe reader, chip reader and receipt printer. It costs £149 (+VAT) or £25 per month for 6 months
- Square Register: This top-shelf device lets you accept payment from magstripes, chip cards, Apple Pay, Google Pay, e-Wallets and more. Square Register comes with the POS software pre-installed and costs £599 (+VAT) or £50 per month for 12 months.
Core services
Square services come in four flavours, which lets businesses set up payment systems for both static and dynamic systems.
Square POS
Square POS is free forever regardless of the hardware you choose.
Square Appointments
Square Appointments is free for individuals, £29 per month for businesses with two to five employees and £69 per month for those with six to 10 employees.
Square for Restaurants
Square for Restaurants offers a free version that supports unlimited devices and locations. Being a restaurant-specific POS software, it lets you manage end-to-end restaurant operations from table management, course management and discounts to inventory management and reporting.
It has three plans – Free, Plus and Premium. Paid plans start at £69 for each location. Transaction fees are 1.75 for in-person payments and 1.4% – 2.5% plus 25 pence for online payments.
Square for Retail
Like the restaurant software, Square for Retail has a robust free version. This app manages a wide variety of retail functions like vendor and purchase management.
Like the Restaurant platform, it has three plans: Free, Plus and Premium. Paid tiers start at £49 per location. Transaction fees are 1.6% for in-person payments (discounted off Square’s standard 1.75% charge), and 1.4% plus 25 pence for online payments (UK cards) or 2.5% plus 25 pence for non-UK card payments made online.
Other benefits
Square App Marketplace offers multiple third-party integrations. These apps come at different costs depending on what you need. Additionally, Square also provides add-on features at extra cost:
- Invoicing: Costs 1.75% – 2.5% per payment
- Loyalty: Starts at £25 per location, per month
- Marketing: Starts at £9 per month for up to 500 customers
- Team management: Free Basic Plan. Plus plan costs £20 per location per month.
Fine print
Due to a flat transaction fee system, end-of-day reconciliation with Square is very easy. Square makes it easier by letting you decide your end-of-day preferences.
The major pull of Square payment processing system is its flat transaction fee system, but it can become expensive if your transaction volume scales up. If you find costs getting high, you can get in touch with the company and work out a customised plan that works better for you.
Square has a list of prohibited goods and services. If you offer any of them, your account will be frozen without notice, because it is included in its terms and conditions.
How Square POS stacks up
Before you choose Square, you should have an idea of what its competitors offer. Here we compare it with Shopify and Lightspeed.
When compared to Shopify and Lightspeed, Square is the only one with zero monthly fees and basic hardware included. The downside is it doesn’t provide 24/7 phone support. Square’s customer phone line is limited to 9am to 5pm Monday to Friday only. Both Shopify and Lightspeed fare better than Square in this regard.
Is Square right for you or your business?
If you are just starting out and do not know how much your business will bring in, Square could be an excellent choice for you because it has zero monthly fees.
If your transaction volume is low or fluctuates from one month to the next, Square can be a good fit because it ensures that you pay processing charges only for what you earn. The lack of a monthly fee makes it one of the more flexible POS platforms available.
Frequently Asked Questions (FAQs)
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.
How long does it take Square to transfer money to my account?
Square takes one to two business days to transfer payments to your account. If you want an immediate transfer, that comes at an additional 1% fee.
Does Square offer fraud protection?
Square automatically monitors all payment activity and provides alerts on suspicious activity through both algorithmic automation and human observation.
According to the company, Square evolves its fraud detection policies constantly to keep customers as safe as possible.
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.
What is the difference between payment gateways and payment processors?
The two are very similar in that they help process transactions between merchants, customers and banks.
Payment processors can’t verify the customer is who they say they are, whereas a payment gateway can.
How do I choose the right POS system for my business?
The best POS system for your business depends on a variety of factors, including the type of business you have, your budget and the features you need.
For many situations, it makes sense to invest in the best system you can afford, and preferably, the system can grow with your business.