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Overview
Square revolutionized payment processing for small businesses by offering free hardware and transparent pricing. Founded in 2009, Square has become the go-to solution for retail stores, restaurants, and businesses that need both in-person and online payment processing.
From my marketing experience at Revel Systems, I've seen how Square's all-in-one approach simplifies payment processing for businesses. Their free card reader and straightforward pricing make them particularly attractive to small businesses just starting out.
Square offers a complete ecosystem including point-of-sale software, payment processing, inventory management, and business analytics. This integrated approach makes it easy for businesses to manage everything from one platform.
Pricing Breakdown
Standard Pricing
| Payment Type | Fee |
|---|---|
| In-person payments (tapped, dipped, swiped) | 2.6% + $0.10 per transaction |
| Online payments | 2.9% + $0.30 per transaction |
| Keyed-in payments | 3.5% + $0.15 per transaction |
| Square Invoices | 2.9% + $0.30 per transaction |
No monthly fees, no setup fees, no contract. Square charges only when you process payments. Free hardware is included with your account.
Key Features
Free Hardware
Square provides free card readers with your account. No upfront costs for basic payment processing hardware.
All-in-One POS
Complete point-of-sale system with inventory management, employee management, and sales reporting built in.
Square Terminal
Standalone payment terminal with built-in receipt printer, perfect for counter service businesses.
Square Register
Full-featured POS system with dual screens for businesses that need a complete checkout solution.
Online Store
Built-in e-commerce platform to sell online with inventory syncing between online and in-store.
Square Appointments
Scheduling and appointment management system integrated with payment processing.
Pros & Cons
✓ Pros
- Free hardware included
- Low in-person processing fees
- No contract or monthly fees
- Easy setup and use
- All-in-one POS solution
- Great for small businesses
- Inventory management included
✗ Cons
- Higher fees for online payments
- Limited customization options
- Less developer-friendly than Stripe
- Account holds possible for new businesses
- Not ideal for high-volume merchants
Who Should Use Square?
Retail Stores
Perfect for brick-and-mortar stores that need a simple POS system with payment processing.
Restaurants
Square for Restaurants offers table management, menu management, and kitchen display systems.
Small Businesses
Ideal for businesses just starting out who need affordable payment processing without contracts.
Service Businesses
Great for service providers who need appointment scheduling and payment processing in one place.
Compare Alternatives
Frequently Asked Questions About Square
Is Square a payment processor?
Yes, Square is a payment processor and payment service provider (PSP). Unlike traditional processors that require a separate merchant account, Square is an all-in-one solution that handles both payment processing and merchant account services. This makes setup easier but means Square has more control over your account, which can lead to account holds for new businesses.
What are Square's fees compared to PayPal?
In-person payments: Square charges 2.6% + $0.10, while PayPal charges 2.7% + $0.00 for in-person. Square is slightly better for in-person. Online payments: Both charge 2.9% + $0.30, so they're equal. Square doesn't charge monthly fees, while PayPal may have fees for certain business accounts. Square also offers free hardware, which PayPal doesn't. See our Square vs PayPal comparison for details.
Does Square charge monthly fees?
No, Square does not charge monthly fees for basic payment processing. You only pay when you process payments. However, Square offers premium features like Square for Restaurants or Square for Retail that may have monthly subscription fees for advanced features. The basic payment processing is pay-as-you-go with no monthly fees, no setup fees, and no contracts.
Is Square better than Stripe?
It depends on your business. Square is better for: retail stores, restaurants, in-person payments, businesses that want free hardware, and those needing an all-in-one POS system. Stripe is better for: online businesses, SaaS companies, developers, subscription billing, and international payments. See our detailed Stripe vs Square comparison.
What is Square's system cost?
Square's basic system is free - you get free card readers and free POS software. You only pay transaction fees (2.6% + $0.10 for in-person, 2.9% + $0.30 for online). Square Terminal costs $299, Square Register costs $799, and Square Stand costs $169, but these are optional. Many businesses start with the free card reader and upgrade later if needed. There are no monthly software fees for basic Square POS.
How does Square payment processing work?
Square payment processing works as an all-in-one solution: 1) You sign up for free (no merchant account needed), 2) You get free hardware (card reader), 3) You process payments through Square's app or online, 4) Funds are deposited to your bank account (typically next business day), 5) You pay only transaction fees with no monthly costs. Square handles everything from payment acceptance to settlement, making it simpler than traditional processors. Learn more in our payment processing guide.