Pros: No monthly fee, competitive fixed transaction rate. Best free POS app. Online payments included.
Cons: Customer support could be more responsive. PIN entry on mobile screen could be a hassle. Only accepts most popular card brands.
Buy if: You want the smallest card reader and most comprehensive, free all-in-one payment system.
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Lowdown
Square – or ‘Squareup’ – was the first company in the world to release a card reader used in conjunction with a mobile app.
The ‘Square Payments’ system was also one of the first truly affordable card processing solutions for small businesses. Not only does it offer face-to-face, remote and online payment tools, it also saves the merchant from committing to a contract, which is the norm for traditional merchant service providers.
In 2017, Square Reader for chip and contactless cards arrived in the UK.
Square Reader connects with a phone or tablet via Bluetooth, processing payments through an accompanying app. It works with iPad, iPhone and Android tablets and smartphones.
Accepted cards
Contactless payments of up to £100 just require a tap against the square-shaped card machine. As for chip and PIN cards, the PIN is entered on the phone’s or tablet’s touchscreen.
The app works as a complete POS system that helps you run any type of business from just your mobile device.
The card reader accepts the most popular debit and credit cards including Visa, Visa Electron, V Pay, Mastercard, Maestro and American Express. It also accepts the mobile wallets Apple Pay, Google Pay and Samsung Pay.
How we rated Square Payments
For a fair rating, we assessed the most important aspects of Square: the quality and experience of the payment products, costs, contract, pricing transparency, sign-up process, value-added features like online payments, user reviews and support options.
These rating categories get a score each, so the final star rating is reflective of its overall value for a small business.
The main thing assessed in this review is Square’s face-to-face payment products, including Square Reader, the connected Point of Sale app and the payment system (Square Payments). We have tested all these products to provide an honest account of the service.
Square fees are simple and transparent
Square card processing fees are just a fixed rate of 1.75% per chip and PIN and contactless payment regardless of the card brand or whether it is premium or from abroad. Cash payments are free to process through the app. No additional or monthly fees are charged on top of that.
| Square Payments | Fees |
|---|---|
| Monthly fee | None |
| Chip, contactless, swipe | 1.75% |
| Online store, payment links | European cards: 1.9% Non-European cards: 2.9% |
| Keyed, invoice, virtual terminal | 2.5% |
| Instant Transfers | 1% in addition to card fee |
| Refunds | Free |
| Chargebacks | Free |
| Square Payments |
Fees |
|---|---|
| Monthly fee | None |
| Chip, contactless, swipe | 1.75% |
| Online store, payment links | European cards: 1.9% Non-European cards: 2.9% |
| Keyed, invoice, virtual terminal | 2.5% |
| Instant Transfers | 1% in addition to card fee |
| Refunds | Free |
| Chargebacks | Free |
Remote or online payments are charged a higher rate. That is, keyed, virtual terminal and invoice payments cost 2.5% of the transaction amount (the keyed rate applies to both when the customer is and is not present).
Online payments through the online store, payment links and eGift Cards are 1.9% for European cards and 2.9% for non-European cards.
With Square, you don’t commit to a contract period, nor do you need to sell every month or have certain sales volumes to qualify for the card rates.
Nothing is charged for refunds or chargebacks, the latter being dealt with for free by a dedicated support team for payment disputes.
Payments are deposited in your bank account as soon as the next working day. This is automatic by default, but you can also set it to manual deposits if that simplifies bookkeeping.
Square also offers Instant Transfers, a setting that enables you to receive transactions within 20 minutes (may take up to two hours) – if your bank is a Direct Participant of Faster Payments. This costs an extra 1% of the transaction amount, i.e. a total of 2.75% for face-to-face payments. Note that merchants may not have access to this feature before they have a sufficient sales history in the Square account.
Square Reader costs £16 + VAT, and the optional Dock for charging and keeping the card reader in place costs £25 + VAT. The Square Stand, including Square Reader and Dock, is currently £89 + VAT (offer here). The latest all-in-one touchscreen register with attached card machine, Square Register, costs a total of £599 + VAT (offer here).
As for the Point of Sale app, features are free except for additional employee permissions costing £20 per month per location (Team Plus subscription) and most of the online store plans. Any third-party integrations are paid for separately through those other software platforms.
Square card reader specs
The crown jewel of Square’s offering is Square Reader, the pocketable card reader ideal for contactless payments especially, though it accepts chip cards too.
It is quite small at 66 x 66 x 10 mm and 56 g, but then you need the Square Point of Sale app on a mobile device with Bluetooth activated to use it.
Photo: Emily Sorensen (ES), Mobile Transaction
Square Reader is quite small.
Square differs from other card readers in the UK because customers need to enter their PIN on the touchscreen of the phone or tablet rather than a physical PIN pad.
This is referred to as ‘PIN on COTS’ (PIN on commercial off-the-shelf devices), sometimes called ‘PIN on glass’ even though that is different.
Also, the Square card reader has no display, meaning the transaction amount and tipping options are displayed only in the app.
Some have been concerned that inputting their PIN using software on a multi-use commercial device is not safe, but PIN on COTS is officially approved by the PCI Security Standards Council, so we do not see cause for concern for merchants or payers.
Photo: ES, Mobile Transaction
PIN entry happens in the Square Reader app on the smartphone or tablet screen.
That said, we recommend positioning the mobile screen so it’s easy to shield the on-screen keypad during PIN entry, allowing customers to feel safe doing so.
Square app
The free Square Reader app called ‘Point of Sale’ is one of Square’s biggest draws. Out of all POS apps in the UK, it has the widest breadth of free features for managing sales and business operations from any compatible Android or Apple device.
Apart from accepting cards through the contactless and chip reader, you can manually enter card details, send invoices and accept cash, as well as create custom discounts, add tips and split the tender so customers can pay some of the transaction with a card and the rest with cash. You can also sell gift cards (costs 1.9%–2.9%) sent via email, to be redeemed in your store.
The product inventory is great for tablets especially, as you can view a neat table of products, the layout of which can be customised. Each product can have a picture, description, types (e.g. red, black, pack of 2, pack of 5), different prices for each type, and stock levels.
Photo: ES, Mobile Transaction
Add products, apply discounts, view stock levels, and distinguish between product types.
To get the most out of Square’s tools, we suggest adding all the items you sell to the library before using the app. This enables you to track product popularity and differentiate between items when processing a refund. And of course, it makes it easier at checkout to just tap the product rather than manually entering each item or calculating a sales total, which are both possible as well.
You can also take advantage of the customer library where customer profiles can be added. This allows you to attach people to specific transactions, get customer feedback, track product preferences and manage sales more efficiently.
Businesses can add staff accounts with limited permissions in the app. Creating a user account for each employee enables time sheets so you can track hours and overtime worked.
Restaurants can upgrade to Square for Restaurants and retailers to Square for Retail, both with free and monthly subscriptions for features tailored to those industries. The Square Appointments scheduling system is also available for hairdressers, personal trainers and other professionals who need a booking system connected to payments.
Alternatively, you can integrate with an entirely different POS platform like Vend or TouchBistro.
Square Reader vs Square Terminal
If a POS app on a mobile device is not for you, the card machine Square Terminal works independently. This is a touchscreen smart terminal with integrated POS features (similar to Square Point of Sale app) navigated directly on the card machine screen. It takes chip, contactless and swipe cards and accepts PIN codes on its touchscreen PIN pad, similar to how you would use a traditional card machine.
Given the large touchscreen and integrated software, Square Terminal is much bigger than the credit card reader, like a conventional card machine. It also has a built-in receipt printer so you don’t need a separate one.
While Square Reader works with 3G, 4G and WiFi through a connected mobile device, Terminal only works with a secured WiFi connection. If you purchase a ‘Hub for Square Terminal’, it can be connected to an Ethernet cable as well.
In other words, Reader is more suitable for on-the-go payments and Terminal best for a fixed location or area with a closed WiFi setup.
Photo: ES, Mobile Transaction
Square Terminal and Square Reader next to a pound coin.
Alternatives to Square
So how does Square compare to other card readers and market leaders in the UK? Its closest competitors are SumUp and Zettle that, like Square, have pay-as-you-go fees without a monthly charge or lock-in.
Zettle Reader is arguably the best-known card reader on the market, partly because of its ergonomic design and push-button PIN pad. Popular SumUp Air also has a PIN pad, but it is made of flat, touch-sensitive glass that is easy to wipe. Square Reader is nevertheless the smallest of them all and comes with the most comprehensive free POS app.
As for standalone card machines, Zettle Terminal is the smallest with (simple) POS software built in – but it is pricier than Square Terminal if you opt for the model with a receipt printer or barcode scanner. That said, Square Terminal only works with WiFi so cannot be used on the go through a mobile network. SumUp 3G and Solo are cheaper than either of these card machines, but too basic for some merchants.
If you’re planning to sell online or over the phone without a subscription, Square trumps the alternatives. We have simply not seen a better virtual terminal or payment link features more extensive than Square’s at no monthly cost. You also get a free online store, QR codes and keyed card entry in the app.
Hardware and accessories
You can wirelessly connect Square’s card reader with compatible receipt printers, kitchen printers (for restaurants), cash drawers and barcode scanners.
What other accessories are available? The Dock for Square Reader can be attached to a countertop and keeps the reader charged all day.
Square Stand for iPad enables you to swivel the tablet screen to face the customer who can then enter their PIN. In addition, the Square Stand has a swipe slot for magnetic stripe cards. However, the stand is only compatible with certain iPads. Square-branded equipment generally looks very Apple-inspired – sleek and minimalistic – so prioritising iPad compatibility is not so surprising.
Quite a few receipt printers work with the Square system, but some only work via Square Stand in which case you need to use iPad, not Android. Countertop printers that do not need Square Stand include Star Micronics TSP143 and TSP654 models and Epson TM-T88V, among others.
If you want a portable receipt printer, the Star Micronics SM-S230i and SM-T300i Bluetooth receipt printers will do. The compatible Star Micronics SP742ML kitchen printer can withstand heat, ideal for printing order tickets in hot restaurant kitchens.
Alternatively, you can bypass Square Reader or Terminal entirely and get the all-in-one POS device called Square Register. This comes with a purpose-built tablet screen where you can use Square’s POS software only, without the need for an Android tablet or iPad. A small touchscreen card machine is attached to it as well.
All Square merchants have free access to:
- Email invoices (with dedicated app)
- Payment links
- QR code payments
- Online ordering page
- Basic website builder
- Virtual terminal for telephone payments
- E-gift cards
Payment links and QR codes (Online Checkout) are accessed in the Point of Sale app or the Dashboard. Invoices can be sent from and managed in the Point of Sale app or through the dedicated Invoices app.
A free online ordering web page can be created and linked to a QR code to display in store for contact-free ordering. The ordering page is also ideal for click and collect, or you can create a complete online store with shipping or collection options at checkout through Square Online.
Image: Mobile Transaction
QR code/payment link in Point of Sale app.
Transactions over the phone or by mail order can be completed in the Virtual Terminal. From any desktop browser, you can log in to the Square account and go to the Virtual Terminal section where you key in a customer’s card and transaction details.
Reports and accounting
In any supported internet browser, you can log into your Square account and export data to Excel for accounting purposes. Because the system is cloud-based, the account is synced with shop activities in real time so you can always check in on how sales are going.
The POS app also shows transactions, payouts, amount of cash in the till drawer (if cash management is on) and sales reports you can email from the app.
Image: Mobile Transaction
Square Dashboard analytics give you an overview of sales from any web browser.
Square analytics are in-depth compared to similar card reader services. Square Dashboard provides an overview of key sales data, but many more analytics are accessed in the reports section. You can, among other things, analyse employee sales, taxes, product categories and product modifiers applied to sales.
For more complex accounting features, Square can integrate with Xero, Zoho Books or other supported software.
Planning to sell online? Learn more about Square Online
Who is it best for?
Square aims to suit every business type. Having tested the POS app, we can verify it’s especially useful in the retail and hospitality sectors – food-and-drink in particular – due to its comprehensive product library, checkout functions, tipping, analytics and staff management features.
Those selling at multiple locations can distinguish between sales at different locations. And let’s not forget the very small size of the card reader, which makes it the handiest for mobile payments at, for example, market stalls, home visits and conferences.
As with other payment companies, Square has a list of prohibited businesses. Some of these industries include pharmaceuticals, adult products and services, certain marketing services, certain financial services, and illegal or otherwise questionable products and services.
Photo: ES, Mobile Transaction
Square blends in completely with white surroundings. Here seen at La Despensa café, London.
Customer support, reviews and complaints
Square is available to phone or email between 9am and 5pm Monday to Friday. There is no weekend or evening support, which is fine if the system works, but not so good if you need support at night in a bar, for example.
The majority of Square reviews are positive, but there is also a thread of negative user reviews in the UK. The main complaints are about unresponsive customer service, account verification issues and in some rare cases, withheld payments.
It appears that if you do get an issue to resolve, it can be difficult to get through to customer support on the phone and even online. Email replies are slow, and urgent issues are not always dealt with promptly.
That said, the online resource section is comprehensive, with guides and articles covering many aspects of the products and features. Most merchants will be able to find an answer there, so you may not need to contact support.
Some users report having their account rejected out of the blue (even after they’ve started selling), but it appears many of them are types of businesses deemed as high risk. We strongly recommend reading the fine print of what trades Square does not allow to avoid having payments suddenly rejected.
Getting started
Before purchasing a card machine, you need to sign up for a Square account and connect your bank account. It typically takes four days to have a bank account verified, but you can still take payments before the verification is finalised. After completing the straightforward sign-up form, you can order the card reader.
If you’re not buying the card reader on Square’s website where it is cheapest at £16 + VAT with free delivery, you can purchase it from Argos, Currys or Amazon. EE and BT sometimes offer a free Square card reader to their business customers. In any case, sign up online via Square first as you won’t be able to use it without an approved account.
We connected a personal bank account with a history of receiving sole trader income, and this was verified after four days. To be accepted, Square requires that the bank account allows for both deposits and withdrawals to support the refund and chargeback system. Online-only accounts like PayPal are not supported, nor are prepaid card accounts. Furthermore, your bank account must operate in GBP.
Photo: ES, Mobile Transaction
Our card reader arrived two days after ordering it online.
Ordering the Square Reader went smoothly and postage was free. We received it two days after purchase via DPD. Prior to delivery, we received text notifications stating when it’ll arrive, to pick a specific time (from a selection of hours) with the option to request leaving it at the neighbour’s if needed. The parcel was wrapped up well – all in all a positive experience.
When the Square account is set up, it’s time to download the Square Point of Sale app on your smartphone or tablet and log in. The card reader can then be connected to your mobile device via Bluetooth, and you’re ready to take your first payment.
Our verdict
If value for money is key to your choice of card reader, Square is one of the leading options in the UK. It has the most free features for the price of a cheap card reader and fixed transaction rate (or you can even just use the app or online payment features without buying a card reader).
Square rating breakdown
Product: 4.1
Costs and fees: 4.3
Transparency and sign-up: 4.8
Value-added services: 4.5
Service and reviews: 3.6
Contract: 5
= 4.3 stars
A big advantage of Square is the many online payment tools available without a monthly fee, which makes any Square merchant more resilient in the face of lockdowns and unpredictable business conditions.
Moreover, growing businesses can use Square in conjunction with external software for e.g. inventory, scheduling, marketing and much more, so you are never really limited if more advanced functions are required.
The pay-as-you-go structure with no contractual commitment makes it a good place to start at a low startup cost.
Pros
No monthly fee or contract
Fast payouts
Superb, versatile free POS app
Great for contactless payments
Discreet card reader
Many online payment tools
Cons
Customer support could be better
Some accessories only for iPad
Doesn’t accept UnionPay, JCB, Diners Club or Discover
PIN entry may be fiddly
