What Credit Cards Are Accepted By Square In 2024

Many consumers have likely encountered a Square payment terminal, a streamlined, white device typically featuring an Apple iPad and a card reader. This system is popular among small businesses, including coffee shops and clothing stores. Square offers a simple solution for businesses to begin accepting card payments, and its prevalence is expected to increase.

As Square becomes more widespread, it’s beneficial for business owners and consumers to understand how it operates with different credit cards, whether you’re aiming to grow your business or just eager to learn more.

What Is Square?

Square is a cloud-based software platform that supports businesses in managing operations and processing payments. It enables businesses to process payments online and in person, manage sales, and send invoices through one integrated system. Because of its ease of use and cost-effectiveness, Square is beneficial for small to medium-sized businesses.

Square supports various payment methods, including credit card transactions, ACH transfers, Google Pay, Cash App Pay, and Apple Pay. It is equipped to facilitate transactions at physical stores, mobile payment processing, and online sales, making it versatile for different business models. The platform features a flexible point-of-sale (POS) system that works in physical and online stores, accommodating e-commerce transactions. It supports direct payment acceptance, service invoicing, and manual payment entries, serving various business needs. Square does not bind users with long-term contracts.

It offers a basic service without monthly fees and allows cancellation anytime without penalties. Costs arise primarily from payment processing fees charged per transaction. For businesses seeking more specialized functions, Square provides additional paid services such as payroll management, email marketing, and enhanced POS systems designed for retail and food service sectors.

Different Types of Payments Methods Accepted at Square

Square provides a comprehensive array of payment methods that cater to various transaction needs, enabling businesses to accept in-person, online, or remote payments. Below is an overview of the payment options available via Square:

• Credit and Debit Cards:

Square supports processing payments from credit and debit cards across several mediums. This includes accepting payments via mobile devices using a card reader, a mobile POS application, or a more extensive POS system at store checkouts. For transactions not conducted in person, customers can pay through online stores, via payment links, or by manually keying in their card details.

• Mobile Wallets:

Square facilitates payments from major mobile wallets like Apple Pay, Google Pay, and Samsung Pay. Such payments can be processed in person using Square’s contactless card readers or integrated into an online e-commerce platform powered by Square.

• Cash App Payments:

Payments made through the Cash App are also supported across Square’s various interfaces. They can be accepted in person using contactless card readers, through remote payment links, or on Square’s online store platform.

• ACH Bank Transfers:

Square accepts ACH payments, providing a secure way for customers to transfer money directly from their bank accounts. This method is typically used for invoice payments and is advantageous for larger transactions.

• Recurring Payments:

For businesses that require consistent payment schedules, such as those offering subscriptions or memberships, Square enables the setup of automatic recurring payments. These can be processed either via credit card or ACH transfers.

• Gift Cards:

Square supports the issuance of both physical and digital gift cards, facilitating the management of gift card sales, balance tracking, and providing customers with a versatile payment option.

• Buy Now, Pay Later:

Through integration with Afterpay, Square offers a buy now, pay later service. This arrangement allows customers to defer payments over time while the business receives the full payment upfront.

• Cash Payments:

Square’s POS system includes features to record and manage cash transactions accurately, ensuring thorough tracking within the app and on the dashboard.

• Paper Checks:

The Square POS system also accommodates the logging of paper check transactions, allowing these to be manually inputted into the sales records.

Types of Credit Cards Accepted by Square

Business owners frequently inquire about Square’s credit card range. Square is compatible with numerous card types, whether issued within the U.S. or internationally, facilitating the handling of payments from a broad spectrum of customers. Square accepts all of the following major card networks:

• Visa
• Mastercard
• Discover
• American Express
• UnionPay
• JCB

This compatibility extends to both U.S.-issued and many foreign cards. It includes processing through various methods, such as swiping, dipping, or tapping, based on the technology used by the card (like magstripe, chip, or contactless). Square maintains a uniform fee structure for all transactions, regardless of the card type. This consistency helps simplify the management of transaction costs, as swipe fees often differ between card providers.

Square’s system is also equipped to handle payments to health care providers using FSA and HSA cards.

Does Square Accept American Express?

Yes, as mentioned, Square does accept American Express and other major credit cards such as Visa, Mastercard, and Discover. Square charges a consistent processing fee of 2.6% of the transaction plus $0.10 for each in-person payment, which applies to all card types, including American Express. Therefore, using American Express does not incur additional fees compared to other cards.

The fee increases slightly to 2.9% plus $0.30 per transaction for online transactions. When card details are entered manually (e.g., over the phone or on an invoice), the fee is 3.5% plus $0.15 per transaction.

These fees are the same for all cards and apply to all payment methods offered by Square, including physical point-of-sale systems, online transactions, and payments made through mobile devices.

Is It Possible to Charge Your Credit Card with Square?

While you might consider charging your own credit card through Square to meet spending thresholds or bypass cash advance fees, it’s important to note that Square’s terms of service explicitly prohibit such actions. The platform does not allow using its service for “cash advances” or for moving funds between your accounts. Engaging in these activities is likely to be flagged as suspicious and could lead to account suspension or additional investigations.

Square has implemented measures to prevent business owners from processing payments with their credit cards on their Square Readers. This restriction also applies to family members of the business owner, preventing them from using the Reader for similar purposes. Any attempts to circumvent these restrictions could result in the termination of your Square account.

Complying with Square’s policies is crucial to maintain uninterrupted service and avoid potential penalties.

What Is a Square Credit Card? How Does It Work?

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The Square Credit Card is a business credit card created for merchants using Square’s platform, developed in collaboration with American Express. It’s designed to meet the specific needs of small business owners, making it a useful asset for managing business finances.

Here are some key features:

• Dynamic Credit Limit: The credit limit on the Square Credit Card adjusts with a business’s sales through Square. As sales increase, so does the credit limit, providing flexibility for businesses with variable sales volumes.
• Rewards: The card rewards users with $1 in free processing on Square for every $3 spent. This benefit can help reduce processing costs, which are often a substantial expense for small businesses.
• No Fees: There are no annual, late, or foreign transaction fees, which benefits small businesses by reducing unforeseen expenses.
• Eligibility: Access to the card is by invitation only and is offered to Square sellers who meet specific sales and historical criteria with Square, ensuring it’s best suited for businesses already using Square’s services.
• Integration with Square Platform: The credit card account is integrated into the Square platform, allowing businesses to manage their account and rewards through the Square Dashboard, thus simplifying operations and financial management.

The card, issued by Celtic Bank, uses the American Express network and can be used wherever Amex is accepted. The partnership uses merchant sales data to make informed credit decisions, helping businesses with limited credit history access credit based on their sales volume.

This credit card enhances Square’s range of financial products, which include Square Loans and banking services. These products are designed to help small businesses manage their finances more effectively.

How Merchants Can Store Clients’ Credit Card Information Using Square?

Square offers a practical “Card on File” feature that allows businesses to securely store client credit card information, streamlining the payment process for future transactions. This tool is handy for recurring payments or clients who frequently transact with a business, enhancing convenience and security.

Here’s a step-by-step guide to storing your client’s credit card information using Square:

From the Square Dashboard

• Log in to your Square Dashboard.
• Access the Customers section.
• Choose an existing customer or add a new one.
• Next to the customer’s name, click the three dots (“…”) and select “Add Card”.
• Input the customer’s credit card details, including the billing zip code.
• Obtain a signed Customer Authorization Form from the client to aid in chargeback prevention.
• After saving, the card is securely stored for future use.

Using the Square POS App

• Launch the Square POS app and navigate to the Customers tab.
• Select a customer or create a new profile.
• Choose ‘Edit Personal Information’ and then ‘Add Card’.
• The card information can be entered manually, swiped, or inserted into the POS device.
• Verify the customer’s email address, enter the billing zip code, and authorize the card for future transactions.
• The customer will receive an email confirmation that their card has been saved.

During Invoice Creation

• Within your Square Dashboard or POS app, go to the Invoices section.
• While creating an invoice, activate the option ‘Allow Customer to Save Card’.
• Customers can then opt to save their card details when they pay the invoice.

Each method adheres to PCI-DSS standards, ensuring that card details are stored securely and reducing the risk of payment disputes or fraud. Safeguarding customers’ payment information not only protects your business but also builds trust.

Understanding the Credit Card Processing Charges with Square

Square provides clear and straightforward pricing for credit card processing, adjusting fees based on the sales type and the payment method.

In-person Transactions

Square charges a fee of 2.6% plus $0.10 per transaction for payments made through a card reader, which includes credit/debit cards, prepaid gift cards, and contactless options like Apple Pay and Google Pay.

Afterpay transactions (Buy Now, Pay Later) are subject to a fee of 6% plus $0.30 each.

There is no charge for processing cash or check transactions through Square’s POS system.

E-Commerce and Online Sales

Online transactions involving credit/debit cards, Cash App, Apple Pay, Google Pay, or prepaid gift cards incur a fee of 2.9% plus $0.30 per transaction. This rate decreases to 2.6% plus $0.30 with Square’s premium online store plan.

Online Afterpay transactions also attract a fee of 6% plus $0.30.

Invoice Payments

The fee for processing invoices using credit cards or digital wallets like Apple Pay and Google Pay is 2.9% plus $0.30. ACH check payments are charged at 1% per transaction, with a minimum fee of $1.

Using a saved card on file either for POS or online transactions incurs a fee of 3.5% plus $0.15 per transaction.

Keyed-in Payments and Virtual Terminal

Manually entered card details, whether through Square’s Virtual Terminal or the app, incur a fee of 3.5% plus $0.15 per transaction.

These Fees Square acts as both the merchant service provider and the payment processor, streamlining the setup process and enabling small businesses to start accepting payments swiftly. Fees are deducted from the transaction amount before the balance is deposited into your account, typically within one to two business days.

Square’s uniform pricing model offers predictability, which is particularly beneficial for businesses with smaller or sporadic transaction volumes. Nonetheless, businesses in high-risk industries or those with large transaction volumes might find more competitive rates with other providers.

Conclusion

Square provides a robust and flexible solution for businesses to accept various credit cards, including Visa, Mastercard, American Express, Discover, UnionPay, and JCB. Its simplicity, uniform fee structure, and diverse payment options—from mobile wallets to recurring payments—make it an attractive choice for small and medium-sized businesses.

With additional features like the ability to store customer credit card information and support for buy-now-pay-later services, Square ensures convenience for merchants and customers, all while maintaining transparency in its fee model.

Frequently Asked Questions