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Square Payments Review 2022; Square Credit Card Processing Rates, Fees, & Complaints

Dera Joseph | Jan 8, 2022 | Advertiser Disclosure

review of square payments

Square (formerly Squareup) is best known for its streamlined and feature-filled point-of-sale (POS) software, alongside its square-shaped plugin-card reader. However there’s a lot more to this company which will be carefully evaluated in this Square Payments Review. The brand was first founded in 2009 by Jim Mckelvey and Twitter co-founder Jack Dorsey. In 2015, the company went public. By 2018, the company acquired Weebly, thereby expanding its eCommerce functionality.

One of the reasons Square Payments stands out from the crowd is that they provide one of the lowest credit card processing solutions perfect for small business owners. Besides being ideal for low volume processing, Square is also known for its ease of use and simple setup.

Today Square is one of the largest point-of-sales (POS) providers in the world. However, like other merchant providers and credit card processing platforms, Square is not ideal for every kind of business. Whether you are a budding entrepreneur, startup or established small business owner, you wish to choose the ideal payment processor that offers a wide range of benefits, tailored to your unique business environment, Dharma or Payment Depot may be a good alternative. In this square review, we will share with you everything you need to know about what you get with Square; is Square payment good? What services does Square offer? And how Square Credit Card Processing Rates Compare to others?

You will also learn about the benefits and drawbacks of using Square for your business to choose the best merchant account provider and payment processor that caters to all your needs.

What is Square? Is Square Reliable?

Square payments

Square is one of the best credit card processing companies. They also offer a flat-rate pricing structure but without monthly fees.  This creates a predictable pricing and quick setup and alleviates a lot of confusions that small business owners often have when trying to navigate their payment processing rates and fees.

When Square first came to reality, the idea of a swipe-based smartphone processing system with no equipment cost and monthly fees seemed like a fad. But today, Square’s robust and feature-rich suite of products and services is a sweet deal. Think about employee management, a robust mobile app (mPOS), seamless transition between in-store and online selling, recurring billing, online ordering, customer management, in-app inventory and e-Commerce integration, plus a great deal more.

Yes you can enjoy everything that Square credit card processing  offers without paying any monthly fee.  Most recently, Square also released Square Online checkout which we will talk about in this Square Payments review. Square Online checkout allows you to receive payments anywhere such as SMS text message, email or copy-pasting the payment button online (just like PayPal). So, you can even create a shoppable Facebook and Instagram and collect your payments there without fuss.

Square also offers a free virtual terminal, stored card capability, invoicing, hundreds of third-party integrations and lots more. You will also enjoy a free retain point of sale app, free online store, basic inventory tools and lots more.

There are also no monthly minimums or statement fees you need to worry about. The only difference here is your fee payment depends on the type of transaction carried out. So, you pay a different fee for swiped, dipped and tapped transactions versus online transactions and keyed transactions.

Regardless, Square is most perfect for sellers who want to enjoy payments on the go. And without set-up fees, new business owners can sign up and start processing online, debit and credit card transactions without the need of establishing a processing history.

Square Payments Review; Pros and Cons


  • Great choice for small business owners looking for a simple and easy to understand processing solution
  • Ideal for brick and mortar businesses and other low-volume merchants
  • Provides affordable chip card readers for small businesses
  • Offers a predictable flat-rate pricing
  • Software solutions designed by Square to offer more transparency and reliability
  • Allows for omnichannel selling


  • Not perfect for large corporations with high volume of transactions
  • Not suitable for high risk industries
  • No guaranteed Android support
  • Comes with proprietary Square hardware which limits flexibility

Who Should Use Square Credit Card Processing Solution?

square payments

Square is the perfect choice for every merchant with a lot more value than many other payment processing solutions out there. So whether you are a large conglomerate or micro-merchant, you will benefit from using Square.

Nevertheless Square offers a great and decent deal to small businesses with low volume processing because you can keep your transaction fees predictable and small. Because Square requires no monthly fees, you can also cancel any time, which is great for new businesses and startups. You won’t have to worry about minimum requirements. Anyone can download one of Square’s free apps: they have one for retailers and one focused solely on POS.

However, larger, high volume merchants may prefer a processor that offers the regular lower processing fees with monthly subscriptions and interchange-plus pricing. Square also offers discounts to specific high-volume clients. So there’s room to negotiate your contract. Regardless, as a high-volume business, using this all-in-one payment processor means you might be subtracting processing fees daily which is burdensome. Square is likely to expand their market in the coming years to reach businesses of all sizes; until then, PayPal will be the likely choice for enterprises.

Beyond that, specific kinds of businesses such as mail-order pharmacies, fire-arm dealers and other brands offering high risk products and services may not be allowed on the Square’s platform.

A Snapshot of Our Square Payments Review

trust pilot on square 2022

Square requires no set up fees, chargebacks, or monthly fee. But there’s more you would learn from this Square review. First off, you must know that Square is more rightly called an entire business ecosystem. You will receive all the tools to run your e-Commerce store, and a lot more advanced POS systems. Think about the free virtual terminal, recurring billing, advanced analytics, free retail POS app, free online store, unlimited items, and lots more.

There’s also the Square for Retail which allows you to enjoy more advanced inventory and reporting with lots more. However, it’s always important to remember that Square is a third-party payment processor. So Square can terminate accounts if it’s risk department decides a merchant bears too many risks. Hence, why Square allows you to quickly open your merchant account, you will be under scrutiny to decide if your business model is too risky.

Nevertheless, a variety of small business owners enjoy using Square because the company has also taken steps to improve its stability. We also recommend that you should read their terms and conditions and understand the general rules governing payment processing to protect yourself and your business as much as possible. The only downside is finding out about why an account was held, frozen or terminated.

Square may also freeze customer accounts if there’s too high a spike in sales with markers for fraud. This is something you need to keep in mind if your business model also provides the chance that you could have quick spikes or growth in sales. But with quick follow-up, this is a small hurdle that can be overcome.

Overall we love that Square offers transparent and affordable pricing, ease of use, and feature-rich suite of tools that is perfect for your business to scale flawlessly. Square offsets some of their fees by making it easier for businesses to succeed financially. When restaurants faced economic slowdowns in early 2020, the company waived the restaurant app’s monthly fee so businesses could budget and recover sooner.

We also love that Square marketing is highly transparent without any gimmicks or promises. The free solutions offered are also entirely free. T

What Merchant Products And Services Does Square Offer

Square POS Apps and Processing

Square’s POS and back-end processing features are unbeatable by every other free mobile processing system out there. The POS apps works well for different kinds of businesses. Upon opening the app, customers see two distinct sections. One section displays product categories, while the other section displays sales information. The app includes the option to pay by cash, credit/debit, gift cards, and Apple Pay. You can even split the bill or tip per your preference.

While you can use Square POS apps, you can also choose to integrate your Square Payments solution with other POS systems such as Lavu, TouchBistro and Vend.

The features you find on the Square POS system are only compared to more advanced and expensive POS solutions on the market. Compared to the lack of monthly fees, you must realize that Square is unbeatable.

Generally, you have four separate Square POS apps to choose from. Each app is designed for a specific niche with a basic free plan available. They include:

  • Square Point of Sale: Square POS is the general purpose app and ideal for quick-serve cafes, restaurants and service businesses with moderate inventory and one-staff calendar. This app is free, is available for Android and IOS and works with all of Square’s hardware solutions.
  • Square Appointments: this provides an online booking service with the POS system perfect for appointment-based companies such as yoga studios and salons. Here your customers can set up appointments, and you can manage commissions and even sell some products. Square Appointments is also free for one user. But you pay 2.6% + $0.10 per transaction. Paid plans start from $50/month for two to five users and reduced processing fee of 2.5% + $0.10 per in-person charge.
  • Square for Retail:  This is available for companies with complicated inventories and multi location store management. However, you can sell online, in-person and offer in-store pickup and delivery. The app allows for searching and scanning items with retail-specific advanced reports. Square for Retail works on IPads and Square Register. There is a free plan but paid plans begin from $60/month
  • Square for Restaurants: The free plan includes a POS system, team management and cu