Compare features, benefits, and user experiences before choosing your card.
Square, now part of Block, Inc., is one of the most recognized payment processing companies in the world. Founded in 2009 by Jack Dorsey and Jim McKelvey, Square transformed how small businesses accept card payments by introducing its iconic card reader that plugs into smartphones. Today, Square offers a full ecosystem of financial services—covering in-person payments, e-commerce, payroll, lending, and even cryptocurrency through its broader Block brand. In this review, we’ll explore Square’s key features, advantages, limitations, and where it stands compared to other processors like Stripe, PayPal, and Shopify.
Square started as a solution for small merchants who couldn’t afford traditional merchant accounts. By providing a simple, flat-fee pricing model and free point-of-sale (POS) app, Square democratized card acceptance for millions of entrepreneurs. Over the years, it has expanded to offer hardware for retail stores, software for restaurants, online store builders, and integrated financial services. Its parent company, Block, Inc., also owns Cash App, Tidal, and other fintech ventures, creating a powerful ecosystem for both merchants and consumers.
Square’s simple pricing is one of its strongest selling points. The standard rate for in-person card-present transactions is 2.6% + $0.10. Online transactions and invoices are charged at 2.9% + $0.30, similar to PayPal and Stripe. There are no monthly fees, PCI compliance fees, or setup fees for the basic package. However, larger businesses processing high volumes may find Square’s flat-rate structure more expensive compared to custom pricing options from competitors.
Square offers a broad range of features designed to cover all aspects of business management:
One of Square’s greatest strengths is its ease of use. Signing up takes only a few minutes, and merchants can start accepting payments immediately with just a smartphone and the free reader (in supported regions). Its POS interface is user-friendly, making it accessible for businesses with limited technical knowledge. The online dashboard provides a clear view of transactions, reports, and inventory.
Square is PCI DSS compliant and handles security automatically, so merchants don’t need to manage complicated compliance requirements. Transactions are encrypted end-to-end, and advanced fraud detection systems help minimize risks. Unlike traditional processors, Square does not require separate PCI certification, which saves time and costs for small businesses.
While Square is widely used in the U.S., Canada, U.K., Australia, and Japan, its international coverage is limited compared to Stripe and PayPal. This makes it less ideal for businesses targeting global markets. However, in supported countries, Square offers localized services and hardware that integrate seamlessly with regional business needs.
Square provides customer support through phone, email, live chat, and a robust knowledge base. However, some merchants report difficulties in reaching live support quickly, especially during peak hours. For small businesses with straightforward needs, the self-service resources are usually sufficient, but complex cases may require more direct assistance.
Compared to Stripe, Square is less developer-focused but more user-friendly for small businesses without coding expertise. Against PayPal, Square offers a stronger in-person payment ecosystem but has less brand recognition with consumers. Unlike Shopify Payments, Square is not tied to a specific e-commerce platform, making it more flexible for diverse business types.
Square remains one of the best options for small businesses, freelancers, and entrepreneurs looking for a simple, transparent payment processing solution. With its flat-rate pricing, free POS system, and additional services like payroll and lending, it provides a comprehensive ecosystem for growing businesses. While it may not be the cheapest option for high-volume enterprises or the most customizable for developers, its balance of features and accessibility makes it a top contender in the payment processing industry.