Square Review and Pricing

Why We Chose Square as the Best Credit Card Processor for Startups

Square is one of the most streamlined and intuitive credit card processors we reviewed, which is especially valuable for entrepreneurs who are new to accepting payments and need a system they can set up in minutes. We were impressed that Square keeps things simple with flat-rate pricing and no hidden markups, as competitors often add costs on top of their standard credit card processing fees. This model can eat into a new business’s tight margins and strict budget planning.

Square’s well-known POS hardware and software tools are easy to use right out of the box and integrate seamlessly with the market’s most popular e-commerce platforms and over 1,000 third-party applications, including tools to set up an online store, giving startups flexibility to sell in person and online as they grow.

Square also allows merchants to accept credit card payments by phone, take payments with an iPhone, and accept Apple Pay and other near-field communication (NFC) payments. This level of payment method support makes it possible for new businesses to meet customer preferences without expensive add-ons.

For all these reasons and more, Square is our pick for the best credit card processor for startups.

Ease of Use

We found Square’s user interface logical, intuitive and easy to navigate during our review. The main dashboard includes separate tabs for reports, transactions, employee management and more, while the homepage displays key statistics, such as gross sales and top-selling items, at a glance. Popular tools like the customer directory and invoicing functionality are accessible from the sidebar for quick navigation. Most business owners and their teams should be able to get up and running without a steep learning curve.

Square’s hardware is well-known for its flexibility and plug-and-play setup. Options range from simple mobile card readers to robust two-screen register systems, and devices are ready to use right out of the box with minimal setup required to start accepting payments.

The Square POS app also makes it easy to accept payments on the go by connecting compatible Square hardware. We like that the same platform works just as smoothly to accept mobile payments in restaurants, making mobile and tableside payments straightforward for staff.

Square Features

Square’s features are particularly well-suited for startups and small teams at the beginning of their business journey.

Virtual Terminal 

Square’s virtual terminal allows you to accept credit card payments, record cash transactions and even process checks from your laptop or desktop computer. We like that it securely stores customer information for recurring billing, helping subscription-based businesses streamline operations and save time.

Inventory Management

Square’s free software lets you manage and monitor your business’s inventory. You can import and export inventory lists using comma-separated value (CSV) spreadsheets and assign stock-keeping-unit (SKU) numbers, categories and other modifiers to organize products. This flexibility makes it easy to configure your inventory system to match your team’s needs.

We were impressed that Square lets you manage inventory by location and set alerts when stock falls to a preset level. These tools help you stay on top of ordering, avoid stockouts and prevent excess inventory. You can even configure the platform to order supplies automatically when inventory reaches a level you’ve specified in the dashboard. You can add up to 500 items to one purchase order while adding item variations and specifying which location carries the new item.

SMS Invoicing

We’re impressed that you can use Square’s virtual terminal to send invoices straight to customers’ phones and accept mobile payments via SMS. Customers simply tap the link and pay on their smartphones instantly. This functionality is especially helpful for startups that need to close sales faster, reduce payment delays and create a smoother checkout experience.

Reporting

Square’s data analytics and reporting features help you gain insight into your business’s performance. We liked that Square’s preset reports help you track data, including:

• General sales trends
• Sales for different payment methods
• Sales of individual items
• Sales by employee
• Taxes
• Charge disputes

Square’s advanced reporting tools also let you create custom reports and drill deeper into your data to identify patterns, spot opportunities and address issues quickly.

E-commerce

No web design experience is necessary to use Square’s plug-and-play templates to quickly create an online store. You can also add Square’s payment processing functionality to an existing website or configure payment links for online checkout, whether or not you have a full website. These links can even be used to accept donations, making them a convenient option for small-scale initiatives and nonprofit organizations.

Integrations

We were impressed that Square offers more than 1,000 integrations, a standout number compared with other platforms we reviewed. For example, you can connect Square with many of the best accounting software platforms, such as QuickBooks, Xero and Zoho Books. Other popular integrations include Wix, WooCommerce, Linktree, ZipRecruiter, DoorDash and many more.

Security

Like other leading payment platforms, all Square products comply with Payment Card Industry Data Security Standards (PCI DSS). All software includes built-in, end-to-end encryption and safeguards to help protect against credit card fraud, giving business owners a secure solution right out of the box with no extra compliance steps required.

Payouts

Under Square’s standard transfer schedule, payments arrive in your bank account the next business day for transactions processed Monday through Thursday. If you prefer instant deposits instead of waiting one to two business days, Square charges an additional 1.75 percent fee. This is a helpful option for startups that need quick access to funds to keep cash flow steady.

Artificial Intelligence (AI)

Square offers generative AI tools to help businesses work more efficiently. Features include automatically creating menus, adding backgrounds to product photos, generating content for marketing and websites, suggesting message replies, and auto-configuring business profiles.

Square POS System

Unlike many other credit card processors, Square tightly integrates its payment processing with a full POS ecosystem. Its POS products and services — including card readers, terminals and a highly rated mobile app with industry-specific features — are designed to work together seamlessly, giving small businesses a complete payment and sales management solution from one provider. We like that this integration keeps setup simple, with no steep learning curve for new users.

​​Square has also recently introduced a unified POS app that combines all its industry-specific POS products  (Square for Retail, Restaurants, Appointments and Online) into one platform. This means you can switch between business types or add new capabilities without downloading separate apps, while still having access to the same free and paid plan options for each mode. This change makes it even easier for growing businesses to change or scale their POS setup as they expand into new markets or channels.

Here’s an overview of the most valuable Square POS features new and growing businesses will appreciate.

Hardware

Square is popular for its affordable and versatile POS hardware lineup, which includes:

• Magnetic stripe reader: The Square Reader comes free with your Square contract and can plug into a smartphone’s charging port or headphone jack to take credit card payments. Additional readers cost $10 each. It operates offline when you lose your signal and requires no battery, allowing uninterrupted sales even without internet access.
• Mobile card reader: Starting at $59, this Bluetooth-enabled reader accepts NFC and EMV chip card payments. Square can also process contactless payments from compatible smartphones without extra hardware, including mobile wallets like Apple Pay, Google Wallet and Samsung Wallet, as well as contactless cards.
• Dedicated kiosk and terminal devices: For $149 (or $14 per month for 12 months), you can purchase Square’s iPad-based Stand POS or its self-service Kiosk device for restaurants and coffee shops. A stand-alone credit card terminal is also available for $299 (or $27 per month for 12 months).
• Square Register: This dual-screen POS device costs $799 upfront or $39 per month for 24 months. It supports swipe, tap, dip and scan payments. We like that the customer-facing screen displays totals and payment instructions clearly, improving checkout speed and accuracy.
• Square Handheld: This portable POS costs $399 (or $37 per month for 12 months) and includes a barcode scanner, camera for item photos, contactless payment capability and a built-in dip slot. The all-day battery life makes it ideal for mobile businesses and events.
• Accessories: Businesses can connect accessories like barcode scanners, cash drawers, receipt printers, docks, cases and stands. Square also supports select third-party accessories, and its website lists all compatible models.

Hardware Rentals

Square is one of the few credit card processors that offers short-term POS equipment rentals. Through its partnership with Fello, you can rent Square’s full hardware lineup for festivals, trade shows and other events. Rental terms are flexible, and equipment can be easily returned via UPS when your event ends.

Mobile App

Square’s free mobile app lets you run your storefront from anywhere. You can accept payments on your phone, create and send invoices, manage inventory and view reports. The app scores 4.8 in the Apple App Store and 4.7 in the Google Play Store, reflecting its strong usability and reliability. Not all credit card processors offer a mobile app, making this a valuable feature for mobile-focused businesses.

Online Ordering

Square offers free and paid plans for businesses to sell products, take orders and accept appointments online. The free suite of tools includes a website builder, Square POS integration, fulfillment features, social media integration, multiple payment options and more. We especially like that Square supports unlimited items on its free plan, while many competitors place limits on the number of items you can list without upgrading.

Gift Cards

Square’s gift card tool helps merchants offer both physical and digital gift cards. You can choose from numerous templates or upload your own design, and Square’s software manages and redeems gift cards for you. There are no monthly fees, long-term commitments or extra software required, and gift cards are free to redeem for customers.

Retail and Restaurant POS Tools

Square stands out for offering industry-specific POS features for brick-and-mortar retailers and restaurants. The retail POS software accepts nearly every payment type — in-store, online and across multiple locations — and includes tools for handling exchanges and returns.

For restaurants, Square provides a pickup-and-delivery system and the ability to accept payments tableside, at a cashier or online. Orders entered at the POS can sync directly with Square’s kitchen display system (KDS), keeping front-of-house and kitchen staff aligned. 

Square Pricing

Square has quite a few industry-specific plans and pricing options, which can make pricing seem overly complicated, especially if your business could be in more than one category. Even though these plans are now accessed through a single, unified POS app, each industry mode still has its own free and paid tiers with different feature sets and support levels. Still, we love that every category includes a free plan with no monthly fees beyond standard processing costs.

We also like that all plans include payment transfers as soon as the next day, end-to-end encryption, a fraud prevention tool and dispute management.

Here’s what you need to know about Square’s pricing:

• Credit Card Processing Fees
• Square Online Store Pricing
• Square for Restaurants Pricing
• Square for Retail Pricing
• Square Appointments Pricing
• Free and Paid Add-Ons

Credit Card Processing Fees

Square’s standard credit card processing rates apply to all plans unless otherwise noted:

• In-person transactions: 2.6 percent + $0.10 per transaction
• Online transactions: 2.9 percent + $0.30 per transaction
• Keyed-in transactions: 3.5 percent + $0.15 per transaction

Square Online Store Pricing

Square for Restaurants Pricing

Additional notes: 

• Additional hardware not included in your plan will cost extra.
• You’ll pay $50 per month for each additional countertop device.
• Mobile POS devices for Free and Plus plans cost $20 per month per device.
• KDS software on the Free plan will cost $20 per month per device. 

Square for Retail Pricing

Square Appointments Pricing

Free and Paid Add-Ons

Square has numerous free and paid add-ons to help you customize your solution to your business’s needs. 

Implementation and Onboarding

We like that signing up for Square is fast and straightforward. The online application takes just a few minutes to complete and only requires basic information about you and your business. There are no credit checks, and most applications are approved quickly, allowing you to start processing payments without delay.

Square includes a free magnetic stripe reader, which may take up to 10 business days to arrive. If you need the device sooner, you can purchase one from an electronics retailer. When purchased through the Square Shop, the reader comes with a 30-day risk-free return policy. 

Customer Support

Square offers a range of customer support options, with hours and channels varying by subscription level. For example, higher-tier restaurant plans include 24/7 phone support, while many other plans offer phone assistance from 6 a.m. to 6 p.m. PST (Monday through Friday). We like that business owners can still reach a live person, as many competitors have moved to fully automated systems.

In addition to phone support, you can contact Square via email 24/7, although response times may vary. For self-service help, Square’s website features a searchable knowledge base with detailed articles, step-by-step guides and answers to frequently asked questions. The Square Community offers product help, networking opportunities, event listings and discussion groups for peer-to-peer support.

Limitations

We found a few potential concerns businesses may want to consider before signing up with Square:

• Customer support: Square lacks some of the service features competitors offer. For example, it doesn’t provide a dedicated account representative or 24/7 phone support on all plans, and email responses can take 24 to 48 hours. If robust customer support is a top priority, check out our Brilliant POS review. This vendor offers integrated payment processing and 24/7/365 assistance.
• Risk management: Some merchants report having their funds or accounts frozen. This is common with merchant aggregators like Square, which are generally more risk-averse than full-service processors. If Square flags a transaction as suspicious — such as an unusually large sales ticket — it may place a hold on your funds.
• Prohibited goods and services: Selling items on Square’s prohibited list can result in account closure without notice. We recommend reviewing Square’s terms of service before signing up to ensure the processor is a good fit for your business. If you need a processor more willing to work with a variety of business types, check out our Merchant One review.
• Onboarding: Businesses needing more in-depth onboarding support may find Square’s process limited. Lightspeed, for example, offers one-on-one onboarding training at no extra cost, which is a perk worth considering if you want or need personalized setup assistance. Read our Lightspeed review for more information.

Methodology

We researched and analyzed top payment services to find the best credit card processors for small businesses. We looked at demos, took advantage of free trials, examined user reviews carefully and interacted with each vendor’s customer service team. We also evaluated each company’s hardware and software offerings, as well as the fairness of their contract terms. When comparing rates and fees, we looked beyond standard pricing to assess total value. To identify the best credit card processor for startups, we paid close attention to affordability, the breadth of free features and the ease of application and setup.  

Bottom Line

We recommend Square for …

• Startups that want an affordable, all-in-one credit card processing and POS solution. 
• Brick-and-mortar operations, such as retailers, restaurants and appointment-based businesses, that value easy setup and flexibility.
• Businesses that want a free plan with core POS features and no long-term contract.

We don’t recommend Square for …

• Larger businesses that are seeking the lowest processing rates. 
• Business owners who require extensive customer support. 
• Merchants that sell products or services in high-risk categories.

Amanda Hoffman contributed to this review.