Is Square the Right Fit for Your Business?
(And When to Know It’s Time to Move On)
Things I hear most often when it comes to Square:
"When I opened my first pop-up shop, I had no idea how to take a payment."
"I wanted something easy and quick."
"I was overwhelmed and wanted as little setup as possible."
"Square felt like magic, nice looking equipment, felt familiar, was easy to set up, and BOOM, I was in business."
For many small business owners and startup founders, Square is the go-to choice. It's simple, affordable, and doesn't require you to be a payments expert to get started. However, Square might not always be the best fit; as your business grows, your needs will likely evolve.
Whether you're a Square aficionado or looking to jump the Square ship, here's what you should be thinking about when it comes to the popular platform.
Why Square Can Be Great
The Basic Plan is Free with Pay Per Transaction Feature: When you're starting a business, every penny counts. The basic SquareUp account is popular because of its free POS software. Couple that with their offer of a magstripe reader for $0 upfront; it seems like a no-brainer. At the outset, the main costs will be your transaction fees, which help you keep startup overhead down.
Easy to Set Up: You don't need an IT department to get started. In fact, with just a quick online sign-up, you can gain approval and begin accepting payments the same day. Plus, you'll receive a free card reader to help you hit the ground running. Since Square's POS app seamlessly integrates with your smartphone or tablet, it enables flexibility for pop-up shops or markets. It's both user-friendly and efficient from beginning to end.
All-in-One Tools: From basic inventory tracking to sales reports and appointments to digital receipts, Square gives you a little bit of everything without feeling overwhelmed, and it makes your accounting team happy. The basic features are robust enough to get the job done for startups and small businesses. As you grow, the add-on features make operational growth easier and more productive.
Flexible Payment Options: Take cards in person, over the phone, or online. Square supports a variety of mobile payments, as well as a buy now, pay later (BNPL) option. You can even send invoices. It's a solid omnichannel tool that, again, offers add-on features as your business grows.
Is It Time to Move Beyond Square?
Like any tool, Square has its limitations. Maybe it felt ideal to start but now it just feels restrictive, or, maybe the constant outlay of new fees to unlock needed features has just gotten too expensive.
Here are some common signs that it might be time to upgrade:
You're Doing Over $15K/Month in Sales: Square's flat rate currently starts at 2.6% + 10¢ per transaction. But once you're bringing in real volume, it starts to add up fast. That erodes your bottom line, prevents profits from building, and hinders your cash flow. Custom pricing or interchange-plus models from other processors could save you thousands annually.
You Need More Advanced Features: As you grow, you might need more detailed inventory tracking, loyalty programs, better CRM, or advanced employee management. Square offers a free basic plan. You'll need to upgrade your plan and add features to keep up with your business as it grows. These costs add up, and Square may still be missing the functional depth your business needs. If you find yourself paying hundreds of dollars for functionality in addition to those pesky flat-rate fees, it's time to look for new platforms and payment options.
You're Scaling Online and Globally: Square's international capabilities are limited. If you expand to the U.K. you'll need a different Square account. If you're expanding into eCommerce, B2B, or international sales, you'll likely need a more scalable platform with global payment flexibility and advanced security compliance.
You've Experienced Account Holds or Delays: To put it simply, using Square is like renting a merchant account, which means you're at their mercy. They rely on their risk assessment tools, and there have been numerous instances where these tools have flagged transactions or accounts, prompting them to freeze funds or shut down accounts without any warning. A delay or closure can disrupt your business's cash flow and could even put you on the brink of closing your doors for good. They have complete control over the money that flows from your customers through Square and eventually to you.
If you take a look on the Better Business Bureau website, you'll find plenty of stories from businesses that have faced account or fund delay or seizures. For many, it can take months, or even years, to resolve these issues, and that's if they're among the fortunate ones who get any resolution at all. If you experience any account holds or delays in receiving your funds, that's a major red flag. It's definitely something that requires immediate attention, and you should consider switching to a different provider.
You Need or Want 1:1 Customer Service: Square, like many of the larger service providers, has a reputation for lacking personalized customer service. Relying heavily on bots and generic FAQ pages can be frustrating, especially when you have urgent issues such as account holds, closures, or funding delays. In these situations, impersonal responses just don't cut it. Waiting for an email response if you escalate it can be debilitating. If you find yourself wanting more personalized support or if your business truly requires one-on-one interaction, consider switching to a provider that offers genuine customer service.
Your Brand Story Isn’t Optional. It’s Your Edge: Square is not particularly known for its visual appeal or customizability. Its generic layout is easily recognizable, regardless of the brand using it. This can undermine your brand's personality and make it more challenging to convey the story you want to tell. Additionally, the platform's limited design options can negatively impact the integrity of your business's branding. Standing out in the digital world is imperative, so consider a change if it no longer aligns with your vision.
Parting Thoughts
Think of Square as the reliable training wheels for your accepting payments, strong and straightforward. It allows you to hit the ground running without the hassle of complex setups, lengthy contracts, or surprise fees. However, as your business grows, you might find yourself needing more robust tools that can keep pace with your ambitions.
Unsure whether it’s time to make a change? We're here to help you navigate that decision. Let’s take a close, honest look at how you’re currently handling payments and pinpoint where you might be losing both money and momentum. Schedule a to meet with Todd for a free, no obligation analaysis and asssessment.
FAQ: Is Square Right for You?
Q: Can I use Square just for invoicing or occasional sales?
Yes! Square is great for side hustles or businesses with occasional transactions. You don’t need to run a storefront to benefit.
Q: Are Square’s fees competitive?
They’re simple and transparent, but not the cheapest. As you scale, look into platforms that offer volume-based pricing.
Q: Is Square safe to use?
Square is PCI compliant and uses encryption to protect data. Just be aware that account reviews, holds and closures can happen at any time with no explanation.
Q: Can I integrate Square with QuickBooks or Shopify?
Yes, to some extent. There are integrations available, but you might hit limits compared to using platforms built for full-scale POS or eCommerce. PayStream offers QuickBooks integration.
Q: What industries is Square best for?
Any B2C business where you need quick, portable, and low-cost payment solutions.