Key takeaways: Square is a pioneer in mobile payment technology. It came out with the first mobile card reader and has evolved into an ecosystem of business operations tools designed to serve businesses of all sizes. Square’s free pricing and flat-fee payment processing structure are its biggest advantages, providing an all-in-one solution for merchants, especially small businesses looking to find ways to keep operational costs low. Square Payments lets merchants accept a variety of payment methods, such as in-person, online, mobile, manual/keyed-in, invoiced, and recurring billing. Square is a widely popular and highly recommended point-of-sale (POS) solution by experts and real-world users alike. It has featured in a lot of our POS buyer’s guides, mainly owing to its price point, suite of robust features, and low-cost fees and hardware options. Read on to learn more about Square as I tackle how it works, what it does, and how much it costs. What is Square? Square is a trailblazer in mobile card and payment technology, having invented the first mobile card reader in 2009. Square didn’t require long-term contracts nor lengthy application or approval processes, and most of all, came with no fixed monthly costs and offered a free POS system. This innovation helped businesses take payments anywhere and completely changed the payment landscape in the retail industry. Today, Square is more than a payment processor — it has evolved into a business technology platform serving all kinds of businesses. The Square ecosystem allows businesses to sell anywhere, manage inventory, communicate with customers, book appointments, order online, and so much more. The Square ecosystem has more than 36 products, providing support and countless opportunities for any operation, from global chains to mom-and-pop shops. Given the incredible value Square provides and the numerous other tools besides payment processing it offers for free or at minimal costs, Square is the perfect payment solution for small businesses processing less than $120,000 per month. How does Square work? Square primarily lets small businesses process payments through credit cards, contactless payments, and ACH transfers. From this service, it then offers various tools within its ecosystem that seamlessly work together and provide a complete business solution. Essentially, Square can provide you with all the tools you need to run your business. Here are Square products available within its ecosystem: Payments: Mobile and in-store payments, hardware, vertical terminal, invoicing, chargeback and dispute management. Point-of-Sale (POS): Mobile and iPad apps, inventory tracking, reporting and analytics, customer and team management. Industry-specific POS: Retail (Square for Retail), food and beverage (Square for Restaurants), services (Square Appointments). Online ordering: E-commerce (Square Online). Business management: Payroll, email marketing, customer messaging (support), loyalty program. Banking: Checking account, savings account, debit card, small business loans. What you get with Square Here are all the features you get with a free Square account: POS Square POS software lets you process a variety of payment methods, links to all your products, syncs your inventory, tracks your customer data, team members, and more through a central Square dashboard. The view from the Square dashboard. Image: Square It enables you to accept the following payment methods: cash, check, vouchers; credit and debit cards; digital wallets, ACH transfers, gift cards, buy now, pay later (BNPL) through Afterpay; and peer-to-peer payments through CashApp. Square also supports the following payment services: mobile payments, in-store POS, online payment gateway, invoicing, recurring payments, virtual terminal, and the CBD program. Online Store When you sign up with Square, you also get a free online store. Called Square Online, it comes with an easy-to-use website builder and e-commerce platform that allows you to take orders online. What’s great about Square Online is that inventory automatically syncs with Square POS, allowing you to have real-time inventory tracking. The website builder interface of Square Online. Image: Square Square pricing Take a look at the associated fees with Square’s point-of-sale (POS, payment processing, and POS hardware. Square POS pricing Square POS software’s basic subscription is free, and any upgrades are billed monthly. The software works on Square hardware and mobile devices—iPad, iPhone, and Android devices. Related: Square payment processing fees Square’s biggest advantage over its competitors is its simple, flat-rate payment processing, with no monthly fees. This means that Square deducts a fixed percentage fee on successful payment transactions. Cash, cheque, vouchers, and other tenders: $0 In-person, mobile, and gift card payments: 2.6% + 10 cents per transaction Online payments: 2.9% + 30 cents per transaction Recurring billing and card-on-file transactions: 3.5% + 15 cents per transaction Keyed-in payments (virtual terminal) transactions: 3.5% + 15 cents per transaction ACH bank transfers: 1% with a $1 minimum transaction Invoiced payments: 3.3% + 30 cents per transaction Afterpay: 6% + 30 cents per transaction CBD program transactions: From 3.5% + 10 cents per transaction Chargeback fee: Waived up to $250/month Square POS hardware To accept in-person and mobile payments, Square offers various low-cost hardware options (interest-free installment plans are also available) to let you swipe, insert, or tap cards to complete a sale. All hardware listed below work on smartphones and iPads using Square’s free POS app. Square Reader for Magstripe: First free, additional reader $10 Square Reader for Contactless and Chip (2nd generation): $59 Square Terminal: $299 ($27/month with financing) Square has different mobile card readers. Image: Square Square Stand (2nd generation, USB-C): $149.00 ($14.00/mo with financing) Square Register: $799.00 ($39.00/mo with financing) Square offers hardware kits perfect for brick-and-mortar stores. Image: Square How long does Square take to process payment? Square lets you transfer funds from completed transactions to your bank account at varying speeds. By default, fund transfers are completed the next business day, and these are free. Payments taken before 5 p.m., PT/8 p.m., ET will be available in a merchant’s bank account the next business day. Payments accepted on Friday before 5 p.m., PT will be posted to a merchant’s bank account by Monday morning (depending on your bank’s processing speeds). Instant and same-day payout options are also available for an added fee – 1.75%