Square: The POS System Built for Every Business

Square is a robust payment processing and point-of-sale (POS) platform that has made a significant impact across various industries, from small startups to large, multi-location enterprises. In this review, we'll dive into the key features, benefits, and potential drawbacks of using Square as a payment solution. We'll also focus on specific tools like the Square Card Reader, Square Terminal, and other offerings that cater to small businesses.

Why Small Businesses Choose Square

Square has become a go-to choice for small businesses for several reasons. One of its most appealing aspects is the user-friendly POS system, which comes with no monthly fees for the basic plan. This feature is particularly beneficial for new businesses looking to start accepting credit card payments without making a significant upfront investment.

Key Reasons for Square's Popularity:

• No Monthly Fees: The absence of monthly charges for the basic POS plan makes it a cost-effective option for startups.
• Ease of Use: The platform is designed to be intuitive, requiring minimal training to set up and use.
• Transparent Pricing: Square's flat-rate transaction fees simplify financial planning, especially for businesses with variable monthly revenues.

Understanding Square's Payment Processing Fees

One of the most critical aspects of any payment processing service is its fee structure. Square simplifies what can often be a complex landscape by offering a clear and straightforward pricing model.

Square's Fee Structure:

• Card-Present Payments: For in-person payments made using a Square Reader, Square Terminal, Square Register, or Square Stand, the fee is a flat 1.75% per transaction.
• Keyed Payments: Manually entered card payments or those processed through Square’s eCommerce API, Square Online Store, or online invoicing are charged at 2.5% per transaction.
• Online Payments: For payments made via Square Online Checkout or through the Square Online Store, the fee is 1.4% + 25 pence for UK cards and 2.5% + 25 pence for non-UK cards.

This fee structure is simple and predictable, making it easier for businesses to manage their finances.

Square's Hardware and Software: A Seamless Integration

Square offers a range of hardware options that work seamlessly with its free POS software, available on both the Apple App Store and Google Play Store. This integration allows businesses to tailor their payment systems to their specific needs.

Popular Square Devices:

• Square Reader for Contactless and Chip: A compact, portable device that accepts payments via contactless methods (Apple Pay, Google Pay) and chip cards. Priced at £19 (+VAT), or £29 (+VAT) with a charging dock.
• Square Stand for Contactless and Chip: Converts an iPad into a complete checkout station. Available for £99 (+VAT) or £17 per month over six months.
• Square Terminal: An all-in-one device featuring a display, chip reader, magstripe reader, and receipt printer. Costs £149 (+VAT) or £25 per month over six months.
• Square Register: A premium, all-inclusive device that handles payments via magstripes, chip cards, and digital wallets. Priced at £599 (+VAT) or £50 per month over 12 months.

These devices offer flexibility and scalability, allowing businesses to choose the best fit for their operations.

Core Square Services: Tailored Solutions for Every Business

Square isn’t just a payment processor; it’s a comprehensive solution that offers specialized services to meet the needs of different types of businesses.

Key Square Services:

• Square POS: The free, forever-basic POS system, perfect for businesses that are just starting.
• Square Appointments: Ideal for service-based businesses. It’s free for individuals, £29 per month for businesses with 2-5 employees, and £69 per month for those with 6-10 employees.
• Square for Restaurants: Designed specifically for the food and beverage industry, offering comprehensive restaurant management. Plans start at £69 per location.
• Square for Retail: Tailored for retail businesses, with pricing starting at £49 per location.

These services are designed to be industry-specific, helping businesses streamline their operations and focus on growth.

Square's Additional Offerings: Enhancing Your Business Operations

Beyond its core services, Square provides a variety of add-ons that can enhance the functionality of your business.

Additional Square Features:

• Invoicing: Fees range from 1.75% to 2.5% per payment.
• Loyalty Programs: Starts at £25 per location per month, allowing businesses to reward repeat customers.
• Marketing Tools: Priced from £9 per month for up to 500 customers, helping businesses engage with their audience.
• Team Management: A basic plan is available for free, with a Plus plan at £20 per location per month, making it easier to manage employee schedules and payroll.

These tools allow businesses to customize their Square experience, adding the features they need without paying for unnecessary extras.

Comparing Square with Competitors

When compared to competitors like Shopify and Lightspeed, Square stands out for its zero monthly fees and the inclusion of basic hardware with no extra cost. However, it’s worth noting that Square doesn’t offer 24/7 customer support, a service that both Shopify and Lightspeed provide.

Competitor Comparison:

• Shopify: Offers comprehensive eCommerce tools but comes with monthly fees and additional costs for hardware.
• Lightspeed: Known for its advanced inventory management, but also charges monthly fees and offers 24/7 support.
• Square: Free POS system with no monthly fees but limited to business-hours customer support.

Square's approach is ideal for businesses looking for a cost-effective, user-friendly solution, although the limited customer support might be a drawback for some.

Is Square Right for Your Business?

If your business is just starting or experiences fluctuating revenue, Square could be an excellent fit. It’s particularly appealing for those who need a reliable POS system without the burden of a significant initial investment. However, as your transaction volume increases, Square's flat transaction fee might become less economical, potentially necessitating a custom plan or exploring alternative options.

Customer Support and Potential Drawbacks

Square offers customer support during business hours, which may be a limitation for some businesses, especially those operating outside regular hours. Additionally, while Square’s flat fee structure is simple, it can become costly for businesses with high transaction volumes. It’s also important to note that Square has a list of prohibited goods and services. If your business falls into one of these categories, your Square account could be frozen without notice.

Final Thoughts: Is Square the Right Choice?

Square is a versatile, affordable, and user-friendly payment system that has become a strong contender in the market for small businesses. Its free POS software, diverse hardware options, and transparent pricing make it easy for businesses to start accepting payments quickly. However, as with any service, it's crucial to assess whether Square’s features and fee structure align with your specific business needs.

Whether you're in retail, the restaurant industry, or providing services, Square offers a compelling package that’s hard to beat. Signing up for Square is free, with no long-term contracts, making it a low-risk option for businesses looking to enhance their payment processing capabilities.