Upfront summary: Is Square safe?
Square is a mobile payment processing company, widely used by small businesses. But, Square can be used in any size business. Along with their secure payment processes, they also offer business services and free point-of-sale equipment for small businesses. Square is very popular—you may have even used a Square system when shopping at your favorite local business or maybe you have seen an advertisement for Square on TV. Square is a great choice for any business, and yes! It is safe to use.
Square Company Information
| Official Website: | www.squareup.com |
| Founded: | 2009 |
| Owner: | Jack Dorsey |
| Number of Employees: | 5,477 (2020) |
| Revenue: | 9.49 billion USD (2020) |
| Location: | San Francisco, California |
| Customer Service Contact: | 1-855-700-6000 |
| Social Media: | Facebook, Twitter, Instagram |
What is Square?
Founded by Twitter CEO Jack Dorsey in 2009, Square is described as financial services and digital payment company. It’s commonly used by small businesses who want an affordable point-of-sale system and a secure way to process debit and credit card payments, whether it be from in-person transactions or online.
How does Square work?
Square offers many different services and software for businesses to use. Remember, Square was started to make running a business easier for the business owner.
It’s mainly used for processing debit card and credit card payments, which have processing fees. Most of Square’s revenue comes from processing fees, selling different hardware to its customers, and premium packages.
As for processing fees, Square only takes 2.95 percent of each sale. 63 percent is used towards interchange and assessment fees, 3 percent is used for Risk and PCI compliance and 34 percent is used to fund Square’s additional tools and features, like no fees on refunds. The other 97.5 percent goes directly to your business!
Is Square safe and legal or a scam?
Square is legal and can be used around the world now, thanks to Square’s free point-of-sale mobile app. If a business wants to use Square’s POS hardware, they must make sure the equipment follows the guidelines of the country they are using it in. For example, hardware being used in the United States may not be approved for Australia or Canada.
Square is safe to use, for its customers and your business’s customers. Square’s equipment is fully PCI compliant and fully encrypted. From the moment a customer inserts their card into a reader, payment data is encrypted until it processes through Square. According to Square’s website, they are a part of the PCI Board of Advisors and they work to develop and create even stronger security measures for its customers.
You will not be scammed by Square, but it’s important to remember that scammers may try making fake emails and accounts to act as Square, to try and steal personal information. An official Square employee will not ask you for personal or financial information. Be cautious when receiving any emails or phone calls.
Is Square trustworthy and reliable?
Yes, Square is a very trustworthy and reliable service. Square is very transparent about how their company works, how fees are used within their company, and what its customers will pay upfront. Transparency is always important in a company!
Square has 998 reviews on TrustPilot.com, with 88 percent of the reviews being 5-stars.
Square is very popular and used all over the world. Since so many people use it and have had good experiences with Square, it’s safe to assume it’s a trustworthy company with reliable products and services.
Square Fees and Costs
Square offers different plans and different point-of-sale systems, based on what your business does.
| Monthly Fee | Chip/Swipe Payments | eCommerce Payments | Keyed-in payments | |
| Square POS | $0 | 2.6 percent + 10 cents | 2.9 percent + 30 cents | 3.5 percent + 15 cents |
| Square for Retail | $0-$299, depending on plan | 2.6 percent + 10 cents | 2.9 percent plus 30 cents | 3.5 percent + 15 cents |
| Square for Restaurants | $0-$299, depending on plan | 2.6 percent + 10 cents | 2.9 percent + 30 cents | 3.5 percent + 15 cents |
| Square for Appointments | $0-$90 | 2.6 percent + 10 cents | 2.9 percent + 30 cents | 3.5 percent + 15 cents |
Square is very transparent with its fees, which can easily be found on its website. Square offers Chargeback protection for free for everyone of its customers, protecting disputes up to $250 a month. (Square proudly admits that they have saved businesses over $330 million by winning and managing disputes for businesses.) If you have to issue a refund to your customer, Square will refund the customer all of their money and your processing fees from the transaction.
When you want to deposit your money from Square to a business account, Square offers an instant deposit for an additional 1 percent.
Like mentioned earlier in the article, Square makes money from processing fees, selling approved hardware, and premium business packages.
Does Square have good customer service?
In recent years, Square has bettered its customer service support. Square employs customer service representatives who collaborate with its engineers to handle support questions. If employees know more about the services and products their company sells, it will create a better customer service experience for the customer and the employee as well.
If you are unable to find help for your issues on Square’s support webpage, Square’s customer support can be reached by phone, 6 a.m. to 6 p.m. PST, Monday through Friday at (855)-700-6000. Square can also be reached through its social media accounts, on Facebook, or at its designated Support Twitter, @SqSupport.
Many tech websites and customer review websites claim one of the biggest disadvantages of Square is the customer service. Everyone’s experience will be different, but it’s good to stay positive, as companies like Square are actively working to create a better Customer Support system.
Does Square have a refund policy/buyer protection?
Square has no monthly fees, depending on what package you purchase. If you purchase a plus or premium package, you will be billed monthly. Since it is on a subscription basis, you pay for what you use. You can easily deactivate your account if you no longer want to use it, but it won’t cost anything to keep open if you are no longer using one of their paid services. If you deactivate the account without canceling any subscriptions, they will continue to charge you unless you cancel.
How to delete a Square account
Go to your Square online dashboard and go to the Accounts & Settings tab. Once you are there, click on the “Personal Information” tab and select Deactivate Account. Select your reason for deactivation. You will be asked to enter a verification code, which will be sent to your cell phone number on file or your email. Simply confirm the deactivation by selecting Deactivate. Remember to cancel any subscriptions before deactivating!
The pros and cons of Square
Pros
- No monthly or annual fees
- No contracts
- Gives businesses a free POS app and swipe card reader
- Quick deposits
Cons
- Customer service is lacking sometimes
- Add-on packages or services may be costly
- Pricing can be more expensive if you have a larger business
Square Careers
According to its Career page, Square is Fast Company’s Best Workplace for Innovators in 2020 and Hired’s Top Global Employer Brand in 2020. Square also promotes inclusion and diversity within their workplaces, offering employment to underrepresented people. In 2018, Square won the Best CEOs for Diversity award.
Square has offices all over the world, offering competitive benefits for its employees. Employees receive fair wages, healthcare coverage, paid parental leave, paid time off, mental health vacations, wellness perks, and opportunities to learn and develop. These are great benefits compared to some companies!
Overall, Square’s company culture and business ethics seem to make it an enjoyable place to work.
Best Square Alternatives
Are you looking for an alternative payment system for your business? Check out these related companies:
- Stripe Payments
- Shopify Point of Sale
- PayPal Here
- Toast POS
- Lightspeed POS
- Payment Depot
Additional FAQs
Can you get scammed from Square?
The only way you may be scammed is through phishing scams. Phishing scams attempt to pose as the company or “Square” in this situation, to collect personal and/or financial information in an email, phone call, or text message. Trustworthy companies like Square will never ask for personal information like your username, SSN, bank account details. If you believe your information has been stolen in a phishing scam, you’re urged to change your email and Square passwords, and contact Square’s customer support.
What type of payments can I accept with Square POS?
Square POS allows card transactions, along with checks, cash, and gift cards.
Can I use someone else’s Square card reader?
Yes! Square makes its card readers universal, so they can be used for multiple accounts. It does not store any information.
What cards can I accept with Square’s POS?
Square readers accept all major debit and credit cards, including Visa, MasterCard, American Express, and Discover. Processing fees for all of the cards are the same.