Established in the minds of Jack Dorsey and Jim Mckelvey in 2009, Square app came about because of a problem Mckelvey had.
See, Mckelvey sought to complete a sale of his glassware. He priced his goods at $2,000 but could not complete the transaction due to fact that he couldn’t accept payments. What was the problem? The lack of credit card processing software available for independent craftsmen like him.
It was a problem that irked him very much, so much so that he sought to resolve this issue from a simple technology standpoint. The co-founder of Twitter, Jack Dorsey, and Mckelvey would work together on the then startup company in the St. Louis area.
That is where the idea for Square to accepting credit cards came about, of course, this would lead to Square for payment processing and other components such as Square Payment Systems. Therefore, Square credit card payments would start to lay the foundation for the larger company that would quickly develop over the next few years.
Indeed, Square with its simple credit card processing is one layer that appeals to many other products that it offers for businesses.
The two founders both agreed to call it Square because of the simple solution (a quick Square reader) that they would provide to small businesses, organizations, fraternities, and independent craftsmen enabling them to make payments with Square. The firm would start by providing simple square card readers that individuals could attach to their phones and quickly accept in-person credit card payments.
It was a quick-fix solution that would help create a fast-growing company that would branch out to provide various services to merchants of all types online and offline. They would strive to meet needs through features like next business day funding or sometimes even next business day shipping for certain products enabling businesses to take payments effectively.
Now, it is necessary to know more about its background to understand the type of businesses it caters to and why it can be a contender in processing your customer payments. It can be a certain way to take payments for your operation if you have minimal problems paying premium pricing (Square Fees) for payment processing solutions.
Here’s a look at the Square app for payments and its history, beginning with the Square Credit Card reader, before we understand the features and its functions.
Square App and Product History
The first thing you should know about Square Inc. and Square app products is how they came to be with elegant simplicity.
The firm would start with the Square Reader and enable merchants to accept payments via a mobile device audio jack connection before moving to the next innovative device. It was a seamless solution that would allow fraternities to sell cookies for a fundraiser and let artists sell their wares and accept payments at a community event.
It genuinely helped to change the game.
The card reader device would reach various individuals and organizations, while Square focused on being more relevant in the community. The Square offering became so popular that other firms such as Verifone would cast aspersions on the level of security on the device when transmitting card information. Yet, Square Inc rebuffed these concerns and the devices kept selling.
It would then branch out to point of sale solutions.
Square would progress to ensuring that it instituted phenomenal encryption and that none of the necessary information such as card numbers or stripe data among other sensitive information is present on Square customer devices when they were to take payments. The online payments firm would also ensure that it had PCI compliance with its processing systems as it evolved over the years to be in line and relevant to industry standards.
The fintech entity would then progress past the Square card reader and bring about the Square Stand in 2013. The Square Stand was another simple and seamless solution. One could use an Apple iPad and have a professional and holistic point-of-sale-system to take payments.
It would realize that its customers required capital to grow and become successful and implemented Square Capital in 2014. Now, Square was branching off into providing eCommerce more tools resources for businesses.
It would also deploy an online booking solution in 2014 that would enable small businesses to entertain appointments from their clients simply. It made it simple to note availability, and help businesses focus on what they do best, service their clients.
Square would head into the new year (2015) and launch Square Payroll, a tool that enabled small businesses to process payroll for their workers seamlessly. It was a product that could provide great value for merchants as it let them streamline business withholding, payroll, and related aspects from within the Square ecosystem.
Square would also launch a Bluetooth connected reader in 2015 that enabled businesses to process credit cards with chips and conduct contactless processing.
The financial services firm would finally bring about their very own point-of-sale system in 2017. Now, through Square Register, they would be able to assist small and mid-level business entities with swipe, chip, contactless, and other features.
It would progress to deploying a terminal product with necessary components for in-store payment processing from prints to chip, swipe, and other modern online payments. From SquareUp POS to other solutions it covers in person payments holistically. The firm knows the value of the Square Point of Sale products and aims to deploy the Square Point of Sale products to as many merchants as possible. But remember, point of sale is merely one component in a larger suite of products. The point of sale solution represents a necessary device in the overall product portfolio.
Along the way, the firm would deploy the widely popular Cash App that would attract a wide variety of users, enabling them to send payments to each other, then integrating features for merchants such as a direct deposit to a Cash App account.
The firm is known for integrating itself into the small business community with strategic acquisitions such as the Caviar restaurant delivery app and other app company purchases like the Weebly app, OrderAhead app, MainLine app Delivery app, and other app options that met their criteria. These purchases would give it more payment presence with restaurants and e-commerce entrants.
What can the payment firm, Square, offer to you and your business with its payment processing solutions?
Square Credit Card Processing Solutions
The payment firm, Square, serves retail, restaurants, quick service establishments, bars, and even coffee shops, among other fine establishments enabling them to process credit cards and more. Small businesses that achieve annual sales in the range of $250,000 can likely benefit from Square payment processing solutions. The firm can be ideal for these businesses in this sales range because of the way it structures its pricing and the options that it provides to its base.
The firm’s overall easy to use and simple merchant experience with a more straightforward pricing structure appeals to quite a few businesses as they manage their sales around the United States.
Businesses can expect to pay a bit of a premium for conducting sales and payments with Square services due to a variety of factors and this is something to keep in mind as one makes a payment processing decision.
But what does Square payment processing solutions look like?
Square Payments Processing Comes in Several Forms
These forms are In-Person, Website, Invoice, and through computers.
Square notes that you can swipe or dip, tap, process online payments with Square Online, key-in payments, send out invoices to customers to get paid digitally, and process payments when dealing with appointments.
Let us look at each of these and what they entail for the small business that chooses to implement these payment processing solutions.
In-Person Payments Processing
From contactless payments to standard in-person payments, Square supports it all. Square provides hardware that enables merchants to “dip EMV” chip cards or process contactless through cards or mobile devices.
Square hardware comes with a variety of products for you to choose from according to your sales needs.
The first product is the Square Register, which costs $799, allowing you to have a fully integrated point-of-sale terminal. It enables retail and other merchants to view their online sales, process delivery, and even accommodate pickup with a single point of sale system to conduct your sales.
Accept payments, manage online sales, delivery, and contactless pickup with one point of sale system.
Comprehensive Credit Machine
The next product is a terminal that will cost $299 for a comprehensive credit card machine with essential features like payments and receipts.
You will also find a standalone product that is merely a simple stand that caters to contactless and chip processing for $169.
Contactless and Chip Square Reader
It also deploys a contactless and chip square reader for a mere $49. This may be one of the more popular options for a lot of merchants in the professional services, arts, and other sectors due to its simplicity and overall ease of use for in-person events.
You can connect this Square Reader to your phone via Bluetooth and forgo the traditional headphone jack requirement. Then you can initiate the Square Point of Sale application and start processing your client’s payments.
The firm works to improve the customer experience each year.
This is important because it means that you can expect more simplicity, improved security, and the ability to accept payments from new innovative methods such as Apple Pay and Google Pay. You expect money in your bank account as quickly as possible and the firm strives to improve operations regularly to meet your needs.
You will find that credit card processing occurs in under two seconds. Further, the Square reader battery lasts for a while enabling you to process payments without any worry.
These dips or tap processing will cost 2.6% + .10 per transaction. You will notice that the firm will process Visa, Mastercard, Discover, and even American Express.
There is also a magstripe reader that Square will deploy for free.
The Square payments dashboard can enable you to take in payments and record it via your regular computer for remote billing purposes. The best part about the virtual terminal is that no special devices are required. That means that you don’t have to pay extra and can use your existing computer or iPad.
This virtual terminal will support sale eCommerce quick checkout, receipt delivery, and recurring payment set up.
You can set up this virtual terminal to gain insights on your sale eCommerce in your business, make notes on customer profiles, and create more details for your business decision making.
This option comes with zero monthly fees.
Now, let’s take a look at Square and its online solutions.
Square has a slew of online solutions for its restaurant customers. These solutions include Square Online for various establishments ranging from restaurant to retail and professional services.
Then custom domains for brand personalization, Square online checkout to share links to get paid, and finally, add the Square app to your existing website to process debit and credit card payments with PCI compliance.
Square Online for Restaurants
Square Online provides simple website solutions for a variety of offline and online establishments. The best part is that Square Online websites start with free plans.
That means that you can manage menu payments point of sale operations and other parts of your business with this software. Recall that a strong menu payments point of sale relationship in the restaurant industry can make a difference as consumers browse your menu online and order straight from their devices.
The solution also enables restaurants to obtain a free online store with compelling features like curbside pickup and local delivery. The Square app firm also notes that it will provide Square Online for restaurants with no monthly commissions or fees for facilitating orders enabling more security and simplicity during times of social distancing.
Of course, one can use Square Online for other establishments ranging from e-commerce to other online stores. Merchants can also take advantage of the integrations available for restaurants with the Square point of sale systems, Square Loyalty, Square Marketing, and even Square gift cards.
Square Online will charge processing fees of 2.9% + .30 per transaction in most cases.
Square will also provide custom domains and other features for their online solutions. These domains will cost $12/month after a free period with specific options.
Square Checkout Link
The Square checkout link is a compelling feature for those that seek to simply sell their wares without an established online presence like a website. For instance, you simply create a link, a purchase button, or utilize a QR code for endless items that you may have in store.
Customers would receive the link, click buy, and allow you to make a sale, all without a website.
Remember that it is a single and simple link that you can share online, via text, social media, and even email!
It can be great for those who sell subscription services and for those who take in donations and other types of payments for goods and services. The link option enables you to embed it on your website too if you wish.
It is a nifty feature for those who want to focus on their art and general good creation.
You won’t have to worry about contracts or regular monthly fees with this option. What’s more, as an added bonus there are no set-up costs to worry about with this option. Square Online will charge processing fees of 2.9% + .30 per transaction in most cases.
Simple Square Payment Integration with Most E-Commerce Providers
Whether you have a site on WooCommerce or Wix, Square is there to integrate into your site. You can easily integrate a square payment solution with these providers without any hassles and be on your way focusing on other aspects of your business.
With its use of machine learning and advanced technologies, zero chargeback fees, and 24/7 processing protection, Square can be a perfect fit for your business if you don’t mind paying a premium for processing services.
The innovative firm comes with hardware solutions for in person payment processing and online solutions for e-commerce oriented businesses and establishments. It aims to become a full fledged bank by 2021 and we can expect the firm to keep growing its userbase over time.
That might provide more value to banking organizations over time.
Merchants can take advantage of eCommerce with more tool resources and a bevy of products.
Its fees for in-person transactions can start at 2.6% + .10 and 2.9% + .30 for online transactions. The company will also charge a different pricing structure for card not present transactions and they will range from 3.5% + .15 per card not present transactions.
Small businesses appreciate the fact that the company presents transparency, simplicity, and security. If you are a low volume establishment, you can benefit from simple pricing, no monthly fees, a variety of features, comprehensive payment systems ranging from the square reader to their terminals. You’ll also gain tools that you can utilize for a digital presence that may boost your business. It is also present in Canada.
Merchants don’t appreciate that they might have problems with their account, a decent portion of transactions might not go through, and that it may not be the best option for higher risk industries. Finally, you can also notice that its high rates can have an impact on your business over time and its limited phone support can be frustrating.