Square
Square is one of the most recognized names in the global payment processing market, known for making card payments and digital transactions simple for small business owners. Founded in 2009 by Jack Dorsey and Jim McKelvey, Square has grown from a magstripe reader mobile card service into a full-scale ecosystem that includes POS systems, e-commerce tools, invoicing, banking, and built-in business analytics.
The user-friendly platform is widely popular among business owners due to its no-frills setup, sleek card reader hardware (like Square Reader and Square Register), and mobile-first functionality. Whether you're running a café, a fitness studio, or an online store, Square helps you accept payments in-person, in-store and online — all while offering transparent processing fees and intuitive tools.
With strong integration capabilities, real-time analytics, and growing banking features, Square continues to appeal to businesses that want both simplicity and control. However, its service has sparked ongoing controversy around sudden account freezes and long fund holds, often lasting 90 days, making reliability a key concern in certain industries.
| Characteristic | Details |
|---|---|
| Regions | USA, Canada, UK, Australia, Japan |
| Getting started | Online registration |
| Setup Fee | None |
| Annual fee | None |
| Commission per transaction | 2.6% + 10¢ (US standard) |
| Payment methods accepted | Cards, Apple Pay, Google Pay, Cash App |
| Fraud & Risk management | Basic tools + machine learning |
| Accepted Currencies | USD, CAD, GBP, JPY, AUD |
| Set up type | Self-service |
| Onboarding & Approvals time | Instant to 24 hours |
| Recurring Billing | Yes |
| Charges on Refunds | Yes (original fee not refunded) |
| SDK Stacks | iOS, Android, JavaScript |
| Settlement time | 1-2 business days |
| Payouts support | Instant and standard options |
| Split payments | Yes |
| RegionsUSA, Canada, UK, Australia, Japan | |
| Getting startedOnline registration | |
| Setup FeeNone | |
| Annual feeNone | |
| Commission per transaction2.6% + 10¢ (US standard) | |
| Payment methods acceptedCards, Apple Pay, Google Pay, Cash App | |
| Fraud & Risk managementBasic tools + machine learning | |
| Accepted CurrenciesUSD, CAD, GBP, JPY, AUD | |
| Set up typeSelf-service | |
| Onboarding & Approvals timeInstant to 24 hours | |
| Recurring BillingYes | |
| Charges on RefundsYes (original fee not refunded) | |
| SDK StacksiOS, Android, JavaScript | |
| Settlement time1-2 business days | |
| Payouts supportInstant and standard options | |
| Split paymentsYes |
Pros
- Easy mobile setup
- Clean point-of-sale interface
- No monthly fees
- Fast onboarding
Cons
- Frequent account holds
- High risk flagging
- Limited international availability
- Customer service inconsistency
Why Use Square? Benefits for Small Businesses in 2025
Square enables users to use Square to accept card payments with minimal setup -either via mobile devices or dedicated POS terminals. Business owners benefit from a centralised dashboard, detailed analytics, and tools such as gift card issuance, invoice management, marketing tools, and team scheduling.
Its integrations with website builders, e-commerce platforms, and third-party software make it ideal for hybrid in-store and online businesses. The optional Square Banking feature is another value add, providing debit cards and loans directly tied to your Square account and payment flow.
How to Get Started with Square
To get started, users sign up online, download the Square Point of Sale (POS) app, and begin accepting payments via phone or tablet — no hardware is required initially. Square Reader, Square Register, or chip cards terminals can be purchased later as the small business scales.
For online stores, Square offers plugins and developer SDKs to integrate with CMS systems. Once set up, all transactions sync to the dashboard, and funds can be deposited instantly or on a rolling basis. You’ll also get access to processor tools like analytics and inventory.
Review
User feedback across platforms like Trustpilot and ConsumerAffairs shows a review landscape that is quite polarised. While many praise the user-friendly setup and transparent per transaction pricing, others voice concerns about customer support and refund processes.
Square Payments has an average review 2025 rating of 4.7/5 on software-focused sites, but on consumer complaint platforms, ratings dip below 2/5. Positive reviewers often highlight ease of use and sleek POS systems, while negative comments mention limited business hours support during emergencies.
Safety
Square has received scrutiny for square account freezes and long 90-day refund holds. In June 2025, more than 700 square review entries noted fund settlement delays, including cases with over $7,000 held without notice.
Despite this, the platform has strong payment card industry safeguards in place: PCI DSS compliance, fraud detection via machine learning, and 2FA. Still, users find the lack of live customer support during transaction reviews problematic.
Account Fees
Square charges no monthly or setup fees, making it attractive for businesses starting out. However, the standard transaction fee (2.6% + 10¢) and additional charges for instant transfers or dispute resolution can add up quickly for high-volume merchants.
Refunds incur indirect costs as the original processing fees are not returned, even when a transaction is fully cancelled. Businesses must factor in these subtleties when evaluating cost-effectiveness.
For Business
Square is an excellent choice for small business owners and solo operators across retail, wellness, and food service. The platform supports POS systems, inventory management, team permissions, and seamless card payment acceptance through contactless and chip card terminals.
The user-friendly dashboard helps businesses track sales trends and customer behaviour, making it suitable even for those new to payment processing.
Which Type of Business
The platform performs best for low-risk, B2C-orientedg industries: salons, cafés, retail stores, solo consultants. For high-risk or high-ticket B2B sectors, however, Square’s automated risk system and sudden holds may pose challenges.
If you're processing large sums or frequent international payments, alternative gateways with better custom risk settings and dedicated support may be a better fit.
Using Square In-Store: Hardware & Contactless Payment Experience
Square’s appeal lies in its hardware simplicity. From mobile card readers to sleek countertop terminals, it’s made for real-world sales. Clients can tap, swipe, or dip cards — and even pay via Apple Pay or Google Pay.
The interface on Square hardware is intuitive and fast. Receipts can be printed, emailed, or texted, which enhances professionalism and customer convenience. It’s ideal for physical stores, pop-ups, or event vendors.
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FAQ
Is Square safe to use for large transactions?
Square implements industry-standard security protocols, including end-to-end encryption, PCI DSS compliance, and two-factor authentication for account access. However, based on hundreds of user reports, the platform applies automated fraud detection that may flag large or unusual transactions as potential risks. In such cases, Square may freeze the funds for up to 90 days while conducting internal reviews, often without direct human support. While the system protects against genuine fraud, it has also led to trust issues for businesses reliant on immediate cash flow. Therefore, if your business processes high-value transactions regularly, it’s wise to reach out to Square’s risk team in advance or consider gateways that offer manual underwriting and account-specific risk settings.
Can I use Square if I don’t have a physical card reader?
Yes, Square was originally designed with mobile-first users in mind. Business owners can accept payments directly via the Square Point of Sale app by manually entering card information. This method is ideal for service professionals, consultants, and freelancers who operate remotely or on the go. However, it’s important to note that manually keyed-in transactions carry a higher processing fee and are more susceptible to chargebacks, due to the absence of physical card verification. To mitigate risks, always verify the identity of the payer and maintain transaction records.
How long does it take to receive my money from Square?
Under normal circumstances, Square initiates standard deposits to linked bank accounts within 1–2 business days. The platform also offers instant transfers for a 1.75% fee, providing same-day access to funds in emergencies. However, numerous users have reported delays in disbursement when accounts are flagged for review — sometimes extending to weeks or even the full 90-day holding period outlined in Square’s terms of service. These delays are typically triggered by sudden increases in transaction volume, disputes, or risk scoring events. As such, it's advisable to build in a liquidity buffer if your operations are time-sensitive.
Does Square work internationally?
Square is only available for businesses that are registered and operating in a limited number of supported countries: the United States, Canada, United Kingdom, Australia, and Japan. Within these markets, merchants can accept international card payments — including those from customers abroad — but the platform does not currently support business registration or payouts in other countries. Businesses outside these regions will need to explore global alternatives like Stripe, PayPal, or Adyen, which offer broader currency and country coverage for international merchants.
What are the main reasons accounts get deactivated?
Account deactivations often stem from Square’s automated fraud monitoring systems, which can flag accounts based on perceived risk factors such as high transaction volumes, chargeback ratios, irregular payment patterns, or prohibited products and services. Once flagged, Square may deactivate the account without prior notice and initiate a fund-hold for up to 90 days. Many users express frustration at the lack of recourse or live support during this process. Although Square provides a dispute channel, success in reinstatement varies. To minimise risk, businesses should review the platform’s Acceptable Use Policy, avoid abrupt transaction spikes, and maintain a consistent payment pattern with supporting documentation readily available.