2020 Square Review: Mobile Reader, POS, Invoicing, and Payroll

Each month, 3 million people use Square’s mobile payment app.1 But is Square the best solution for you? For small businesses that need a slew of products to accept payments and pay employees, Square is an obvious choice.

Best Overall
out of overall
Multiple financial products
Reasonable pricing
Complaints of account suspensions
Last Updated: More than 6 months
We took another look at our Square review to make sure we’re giving you our most accurate, up-to-date perspective on Square, its product offerings, and its prices. Turns out, Square’s updated its transaction fees, so we’ve reflected those changes in our review.
More than 2 years
After relooking at mobile credit card readers available to business owners, we decided to keep Square as our #1 choice. Read below to see why.

You’ve seen Square’s mobile credit card readers at farmers markets, food truck roundups, and restaurants, but Square offers more than card readers to small businesses. Between Square’s point-of-sale (POS) system, invoicing program, payment app, and chip readers, Square offers fairly comprehensive, mobile, and time-saving financial solutions for small businesses—all for an unbeatable monthly price of $0. There are some small fees, and you would have to purchase any necessary hardware. But even with those costs, Square is rather affordable for the average small business.

While Square’s free software solutions are perfect for entrepreneurs, tradespeople, and small-business owners, what about larger and more complex operations?

Recently, Square has developed more scalable solutions for larger businesses. For example, as a more comprehensive financial solution for businesses with dozens or hundreds of employees, there’s now Square Payroll. For retailers with a more complex and high-volume inventory, there’s a more sophisticated POS solution: Square for Retail. But it’s worth noting that as Square’s products scale up for larger operations, they also scale up in pricing.

Square Point of Sale: Best for most businesses

POS software can benefit any small business, and Square Point of Sale is no exception. Square’s integrated processing payment system centralizes your sales information and makes it available anywhere. It doesn’t matter if you’re accepting cash, checks, gift cards, or credit cards; all the information is recorded in one spot. The software also streamlines your operations to save you time, reduce human error, and improve the overall customer experience. And like other POS software, Square Point of Sale offers detailed sales reporting and insightful analytics. In short, what’s not to like about Square’s POS software?

Square Point of Sale
FeatureDetailsFind more info
Up-front price$0Learn More
Monthly Price$0Learn More
Processing fee2.6% + 10¢ per swipe, dip, or tap*
3.5% + 15¢ per card on file or manually entered card payments
Learn More
Compatibility- Android
- Apple
Learn More
Hardware options- Magstripe Reader (Free)
- Chip Card Reader ($29)
- Contactless and Chip Reader ($49)
- Stand for Contactless and Chip Reader ($169)
- Register ($999)
Learn More
DrawbackComplaints of unexpected account suspension and terminationLearn More
Data effective 11/12/19. At publishing time, pricing and products are current but are subject to change. Offers may not be available in all areas.
*Fee decreases to 2.5% + 10¢ on transactions processed through Square Registers purchased before 8/20/2019

To be a successful business, it’s essential to keep track of payments, and Square Point of Sale can help you do that effectively. It doesn’t matter how informal or small your operation is: whether you’re selling apples at the farmers market or opening a yoga studio, Square’s free POS software is a great solution. All you have to pay for is the hardware and a 2.6% + 10¢ fee for every swipe. It’s so reasonably priced, we recommend it for businesses that need anywhere from one to ten point-of-sale systems.

Square POS hardware costs
HardwareUp-front costSwipe, dip, or tap payment feesE-commerce transaction feesCard on file or manually entered payment feesGet started
Square Register$7992.6% + 10¢*2.9% + 30¢3.5% + 15¢Buy Now
Square Stand for Contactless and Chip$1992.6% + 10¢2.9% + 30¢3.5% + 15¢Buy Now
Square Reader for Contactless and Chip$492.6% + 10¢2.9% + 30¢3.5% + 15¢Buy Now
Square Reader for Magstripe$102.6% + 10¢2.9% + 30¢3.5% + 15¢Buy Now
Data effective 11/12/2019. At publishing time, pricing ise current but subject to change. Offers may not be available in all areas.
*Fee decreases to 2.5% + 10¢ on transactions processed through Square Registers purchased before 8/20/2019

Square for Retail

If your business regularly breaks $10,000 in sales per month, Square’s regular Point of Sale transaction fees can really eat away at your profit margin. Fortunately, for high-volume retail businesses, Square offers another option: Square for Retail.

Square for Retail costs $60 per month, but it brings your per-payment processing fee down to 2.5% + 10¢. Keep in mind, though, that this option saves you money only if your business makes lots of low-value sales. If your average sale is relatively high, you’re probably better off sticking with Square’s regular point of sale offering—or contacting Square to negotiate a custom rate.

Comparing Square Point of Sale

  • No monthly service fee
  • Detailed sales reports
  • Quick payment processing
  • High transaction fees

When comparing point-of-sale solutions for small businesses, Square Point of Sale excels. Along with being one of the most affordable solutions out there, Square’s software empowers your business with flexibility and mobility. In fact, we picked Square as the best mobile point-of-sale (mPOS) system for small businesses.

Square is also quick about transferring money into your account, with most payments going through within one to two business days. Plus, it offers excellent features that compete with the best POS software offerings: invoicing capabilities and tools for reporting, email marketing, and employee management.

The potential drawback with Square Point of Sale is the transaction fees. Square’s flat rate of 2.6% + 10¢ per swipe, dip, or tap is certainly low—but it’s beaten by competitors like Payanywhere and Intuit GoPayment. However, both Payanywhere and GoPayment come with monthly fees, so in the long run, Square Point of Sale is more economical for businesses with low-volume sales.

To illustrate our point, check out these comparisons of Square versus other POS providers:

Cost of 50 monthly transactions ($100 each) over three months
POS providerCard-present transaction feesMonthly FeesTotal
Payanywhere Standard1.69%$12.95$292.35
Square Point of Sale2.6% + 10¢$0$395
Payanywhere Pay As You Go2.69%$0$403.50
PayPal Here2.7%$0$405
Intuit GoPayment2.4% + 25¢$25**$472.50
Data effective 11/12/19. At publishing time, pricing is current but subject to change. Offers may not be available in all areas.
*With a Basic Shopify plan
**With a Simple Start plan
Cost of 1,000 monthly transactions ($100 each) over three months
POS providerCard-present transaction feesMonthly FeesTotal
Payanywhere Standard1.69%$12.95$5,108.85
Intuit GoPayment2.4% + 25¢$25**$8,025
Payanywhere Pay As You Go2.69%$0$8,070
Square Point of Sale2.6% + 10¢$0$8,100
PayPal Here2.7%$0$8,100
Data effective 11/12/19. At publishing time, pricing is current but subject to change. Offers may not be available in all areas.
*With a Basic Shopify plan
**With a Simple Start plan

Square Payments Processing: Best for e-commerce businesses

  • Affordable pricing
  • Compatibility with all major credit cards
  • Inventory management
  • Funding holds
  • Complaints of account terminations

While Square has made a name for itself with its simple-to-use hardware and POS system, the company also offers payment processing for online transactions.

Just like other Square services, Square Payment is easy to set up and chock-full of beneficial services. Its dedicated payment accounts offer credit card transactions for in-store, online, and keyed-in transactions. Merchants can store payment details to make checkout as efficient as possible. Plus, Square’s payment processing APIs allow users to integrate with sales while tracking reporting and deposits.

But that’s not all. Square Payment makes it even easier to manage your business by keeping your inventory up-to-date. Users will receive daily emails outlining which items are low or out.

In terms of pricing, Square Payment charges 2.75% per swipe. For invoice and e-commerce payments, the platform charges 2.9% + $0.30 per transaction. Virtual terminal and keyed-in transactions cost 3.5% + $0.15 per transaction.

If you regularly deal with a large volume of payments and are worried about all those transaction fees adding up, don’t fret. Businesses that process more than $250,000 in credit card sales can work with Square’s sales team to create a custom pricing package.


Just like other Square services, Square Payments Processing is easy to set up and chock-full of beneficial services.

Square Invoices: Best for occasional invoicing

  • Intuitive and easy interface
  • No subscription fee
  • Credit card payment capabilities
  • Minimal features
  • High transaction fee

Do you send only a few invoices a month? Then Square Invoices may be an excellent fit for your business. It was built for occasional use, so it makes the most sense for businesses that invoice infrequently, like restaurants and brick-and-mortar stores. For businesses that send large batches of invoices on the regular, you may find invoicing software with richer features and more competitive prices elsewhere.

Because of its simple setup, Square Invoices doesn’t include the detailed features, like expense tracking and fancy dashboards, that other invoicing software have. Square Invoices offers only the basics: customizable invoices, invoice tracking from any mobile device, reminders for unpaid invoices, and credit card payments. And honestly, that may be more than enough for your particular business. Plus, if you’re already relying on Square for your small-business financial needs, you can easily access more in-depth financial features in your Square online account.

But even if you’re already pairing Square Invoices with a more complete solution like Square Point of Sale, it really comes down to how often you invoice your customers—since transaction fees are even steeper with Square Invoices. The regular tap, swipe, and dip transaction fee for Square Point of Sale is 2.75%. With Square Invoices, it’s a 2.9% fee. That fee increases further to 3.5% + $0.15 if you choose to keep the customer payment information on file.

Square Payroll: Best for any staff setup

  • Intuitive interface
  • Flexible pricing
  • QuickBooks and time card integration
  • Limited payroll types
  • No free trial
  • Complaints of slow direct deposits

As an advanced payroll processing software, Square Payroll checks all the boxes for paying your staff. It not only processes payments but also offers online accounts for each team member. Whether salaried, hourly, or otherwise, employees and contractors can quickly set up direct deposit, clock in and out using Square’s POS app, and import time cards automatically.

Square Payroll aims to save business owners time with its payroll system by offering a clean and easy-to-use setup wizard. The site guides you from screen to screen, asking questions about your business and what type of payroll you require. After signing up for its services with just a few clicks, you’ll have access to an abundance of payroll services, including imported time cards, online accounts for team members, sick leave tracking, paid time off tracking, workers compensation, and more.

Perhaps its shining feature is its employee payroll compliance. It’ll handle your W-2 employee withholdings and even file your payroll taxes at no additional cost.

Unlike competitors, Square Payroll offers flexible pricing. Its contractor-only option is priced at an affordable $5 per contractor per month. If you have full-time employees, expect to pay $29 per month plus $5 per team member or contractor per month.

PlanStarting price per monthFind more info
Contractors only$5 per contractorLearn More
Employees and contractors$29 subscription + $5 per employee or contractorLearn More

Although Square makes payroll quick and easy, we did find one downside. Currently, Square’s employee and contractor online payroll service is available in only 38 states. But if you need just its contractor-only payroll service, you’re in luck. It’s available in all 50 states.

FAQs about Square

Still have questions? For more information, find the answers to frequently asked questions below.

Does Square have third-party integrations?

Square is one of the most versatile merchant services on the market. From accounting and bookkeeping to inventory management and employee schedule management, Square seamlessly integrates with a variety of third-party apps.

Is Square better than PayPal?

Square and PayPal have solutions to fit different businesses and needs. Square offers no restrictions on typical in-store transactions, which is important for high-volume merchants. However, PayPal tends to have the advantage in terms of processing rates, customer service, and payment channels. Take a closer look at the differences between Square and PayPal.

Does Square do more than POS and mobile credit card readers?

Square provides a myriad of robust tools and services for all types of businesses, both large and small. Along with the services we mentioned above, Square users have access to analytics of sales, customer spending habits, in-depth reporting, appointment setting, employee management, and more. So it’s no secret why Square has helped millions of merchants successfully run their business.

Who benefits the most from Square?

While Square benefits businesses of all sizes, it’s most beneficial for merchants who have less than $10,000 in swiped transactions per month.

What should you know about Square?

Before you sign up for the platform, take a minute to get to know the company:

  • Customer service: Square’s customer support consists of live phone support during weekdays and business hours. Not a big phone talker? Send them a quick note through email or social media.
  • Consumer feedback: The primary complaint on the BBB website is Square’s lack of live support and terminated accounts. In its General Terms of Service, Square states it can “suspend or terminate your Square Account or your access to any Service, at any time for any reason.”2 Keep in mind that Square is continuously working to improve its customer service and policies.
  • History: Square has come a long way in the past nine years. In fact, Square’s stock has more than quadrupled over the past two years.3 The dominant company revolutionized payment processing with its portable, pocket-sized credit card processing system. Previously, business owners struggled with the cost and complexities of credit card processing. Today, Square aims to solve small-business challenges while being a breeze to use.

The takeaway

Running a business is no easy feat. If you want a simple and affordable all-in-one solution for helping your business succeed, consider the popular Square platform. But depending on your business’s needs, another popular merchant account may be the right one for you.

Want to check out the other options? Stop by our guides to the best point-of-sale and payroll services for businesses to see how Square compares to the competition.


At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

1. The Statistics Portal, “Number of Mobile Payment Users Accessing Selected Leading Payment Apps in the United States as of July 2017 (in Millions)
2. Square, “General Terms of Service
3. Nasdaq, “Square Inc Weebly Buy Could Be Red Flag on International Revenue Streams