What Is Square Payment? Who Does It Do?

what is square payment?
Image: Square

Square Payment is a part of Square Inc.’s commerce solutions. Jack Dorsey and Jim McKelvey founded Square in 2009, and it has grown from “the little white reader” to a payment gateway with some powerful POS options.

Businesses can accept Square payments via the Square app coupled with POS hardware like the Square Magstripe reader, Terminal, or Square Register.

What Does Square Do?

Square is an easy-to-use system that lets you accept credit card payments. You can set up your Square account by following simple steps on the website.

Once done, you can manage inventory, employee attendance, deliveries, shipping, and other functions from within the app. When you pair the app with Square Payments hardware, you can accept payments via credit/debit cards, NFC wallets, and the Square Cash app.

This hardware-software integration makes Square a complete commerce solution for businesses. You can also buy Bitcoin using the Square Cash app. In 2021, Square payment also enabled Square Cash users to send and receive Bitcoin without any transaction fees.

Square’s POS hardware accepts all major credit and debit cards. Add NFC-payment methods like Google Pay and Apple Pay, and it becomes a good option for over-the-counter sales. With Bitcoin integration, the system makes itself future-proof.

What is a Square Payment Fee?

Square is a paid service, and if your business is using Square payment solutions, you may have to pay accordingly. It charges per transaction, and the fees may vary depending on how you use Square for business.

Square’s standard processing fee is 2.6% + 10¢ for contactless, swiped, or inserted chip and magstripe cards. Manually keyed-in transactions command a 3.5% + 15¢ fee. There are no other monthly or hidden fees. You can also contact Square sales for special quotes and offers.

What are Square Alternatives?

Other options offer the same services as Square payment online. Some of these are Lightspeed, Clover, Helclim, and PayPal Zettle.

Other alternatives are coming into play here if we look into the distant future. These include Apple’s plans to turn iPhone into a payment terminal. If this becomes a reality, then POS hardware in Square and the others are likely to go obsolete.

But that is still in the distant future, and for now, Square and other options accommodate all forms of payments, including cryptocurrency. So if you were to pick one today, you’re spoiled for choice.

If you like this simple explainer, check out our Short Bytes section. We take complex tech topics and break them into short, easy-to-understand articles.

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