What I love about what Jack and the Square team did is their pioneering approach to transparent, simple pricing that's both clear and widely accessible to the masses.
Square is a popular credit card processing company that has revolutionized the way small businesses accept payments. Founded in 2009 by Jack Dorsey (who I ran into on the street in San Fransisco - wild story here), the co-founder of Twitter, Square has quickly become a household name in the payments industry.
What I love about Square, is how they pioneered transparent, clear, simple pricing, and made it available and widely accessible for the masses. But it's not all sunshine and roses.
Let's take a closer look at Square and evaluate their pros and cons.
Today, Square is great in certain situations, but disappointing in others.
If you know exactly what you need and are doing low volume, then Square can be a great solution!
Square doesn’t have a dedicated payment processing advisor. So it’s on you to figure out the myriad of options, hardware solutions, software solutions, integrations, etc that you might need.
You might be thinking “Do I have a good rate? Do I need to do emailed invoicing? Do I need a pay-now button for my website? Should I be storing credit cards? Is that secure? Should I be doing recurring payments? Should I be tracking inventory? How do I do all these things?”
Square doesn’t have them. You’re on your own. You might be busy running your company and providing the great services and products that you provide. But on top of that you’ll ALSO have to figure out Square, and how it can best support your business.
Square has a 1 star rating, out of 152 reviews at the time of this writing, according to the website SiteJabber. Merchants considering using them should take that into account when considering using Square for payment processing.
Square's pricing is transparent. They charge a flat rate of 2.6% + 10 cents per transaction for in-person payments and 2.9% + 30 cents per transaction for online payments. There are no monthly fees or setup fees. This pricing model can be beneficial for small businesses that process a low volume of transactions. However, for businesses that process a higher volume of transactions, this pricing model can become more expensive than other processors that offer lower transaction fees.
For example, if a business processes $10,000 in transactions per month, they would pay $260 in fees with Square. However, if they used a processor that charges 2% + 20 cents per transaction, they would only pay $220 in fees for the same amount of transactions.
Overall, Square is a great option for small businesses that are looking for a simple and easy-to-use payment processing system. However, businesses that process a high volume of transactions may want to consider other processors that offer lower transaction fees.