Square Credit Card Processing Review

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Review of: SquareUp

Reviewed by:
Rating:
2.5
On July 2, 2012
Last modified:October 4, 2012

Summary:

SquareUp allows any merchant in the United States to processes credit cards with their mobile device like an Android, Iphone, or Ipad. SquareUp offers the capability to either swipe credit cards with their attachment, or manually enter them into a mobile device.

Square Credit Card Processing
Based out of San Francisco, California, SquareUp (www.squareup.com) allows any merchant in the United States to processes credit cards with their mobile device like an Android, Iphone, or Ipad. SquareUp offers the capability to either swipe credit cards with their attachment, or manually enter them into a mobile device. The company was founded by Jack Dorsey in 2010 under SquareUp, Inc.

SquareUp is not accredited with the Better Business Bureau but has a rating of A-. A total of 154 complaints have been filed within the past three years, with 145 closed within the past year. There have been 18 complaints in which the customer felt the resolution SquareUp gave was unsatisfactory. With 2 million users, the ratio of BBB complaints is low. The majority of the complaints had to do with billing/collection issues and problems with products/service.

Square credit card processing advertises the ease of use of their service, and for good reason. They’re one of the only merchant service providers that offer no monthly fees, a free credit card swiper, and a true ‘plug-and-go’ application. They do not have independent agents and instead rely on inside sales representatives, kiosks at retail locations, and a heavy direct marketing campaign. You can pick up a SquareUp device at retail locations like Apple stores, Best Buy, Staples, and Wallgreen’s making finding processing solution easier than ever before. Their pricing structure also acts as a marketing strategy. Square offers a flat 2.75% transaction fee, no monthly fees, and no merchant account contract. In an industry of complicated contracts and notorious hidden fees SquareUp has been a breath of fresh air. However, this simplistic approach to processing credit cards might not always be best depending on the business. Furthermore, customer service is sub- par for a multi-million dollar corporation. Any customer service related issues have to be solved using email, or their online support forum, they do not have an 800# to call. Many see this as a deal-breaker for using Square credit card processing because situations might arise where waiting for an email response is out of the question.

With no monthly fees, SquareUp offers a flat 2.75% for all swiped AMEX, MasterCard, or Visa transactions. Keyed transactions are 3.5% and $0.15 meaning businesses with a large amount of card-not-present transactions should look elsewhere. Keyed transactions also have a $2,002 per week restriction. In any consecutive seven (7) days, if a merchant is to exceed $2,002 in keyed transactions funds will be held for up to thirty (30) days. Furthermore, 2.75% is a pretty high markup above interchange on a lot of cards consumers use. For example, interchange on a swiped debit card from a major bank is 0.05%. Any business that plans on taking multiple transactions on a daily basis might want to look around more. A monthly fee from another provider might not matter if there’s a better markup above interchange.

   

 

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