Cash App for Business | Online Banking and Point of Sale

cash app for business

Cash App for business is called Square Cash and is a popular point of sale and online banking platform for taking customer payments. Learn all about the software, hardware, payment fees, and more in our Square Cash App for business review. 

But first, here’s our short verdict:

Unlike their popular Cash App that is ripe with scammers and unsatisfied customers, Square Cash (Cash App) for businesses is a stellar and reliable product for small and medium businesses. With live phone support, a solid app for taking payments, and easy-to-use hardware and peripherals, businesses are flocking to the platform.

About Square

Square is a digital bank, but also offers payments and other financial services to regular people via its popular Cash App and businesses via Square Cash. 

The company was founded in 2009 by Twitter’s Jack Dorsey and Jim McKelvey. Its headquarters are in Sn Francisco, California. 

As of writing this review, the fintech is worth more than $111 billion. 

Where is the Square Cash App available?

Square Cash App is only available in the US and the UK. The company has its European headquarters in Dublin, Ireland, supporting operations for its payments software and card readers for businesses.  

Although their service isn’t yet available in Europe, the fintech giant has made some significant investments in the space, preparing to expand worldwide. They even obtained their e-money license from the Central Bank of Ireland. 

How to set up a Cash App for Business account?

If you already have a personal Cash App account, you can switch it to a business Square Cash (Cash app for Business) account. Simply open the app and change the account type. You can then add your business bank account details, create a cashtag and embed cash.me link wherever you need it. 

If you’re starting from scratch and want to integrate Square Cash with your business, go to their website, where you’ll have to create an account by entering your email, password, and country.  

You can register for a Square account as a sole trader or a company, and you’ll have to input personal and business information for identity verification purposes. But that’s not all, as you’ll also have to upload a photo ID for you and other business owners if there are any. 

Once you open the account, Square will send you a free magstripe reader, but you can also choose additional equipment (more on that later). 

Pros and cons

Pros 

  • POS software and hardware
  • Square business card
  • Lots of addons
  • Low fees
  • Offline payments
  • Free magstripe reader

Cons

  • Not for big companies
  • Add-on services can add up costs

Fees

The fees largely depend on the type of transaction. So, for instance, the most popular transaction for merchants, in-person card payments, will be 2.6% + 10 cents. For e-commerce payments, the fee is 2.9% + 30 cents. Those fees are in line with other competitors out there. But, unlike some others, Square doesn’t charge a monthly fee for using their platform. 

The fees also stay the same whatever card your customer uses. Plus, there are no other fees that might give you a scare once the statement rolls in. 

In-person payments

  • Tap, chip, swipe: 
    • Free plan: 2.6% + 10¢
    • Plus plan: 2.5% + 10¢
  • Manual: 3.5% + 15¢

Remote payments

  • Square Invoices card transactions: 2.9% + 30¢
  • Square Virtual Terminal transactions: 3.5% + 15¢
  • Card-not-present transactions: 3.5% + 15¢
  • Card on File transactions: 3.5% + 15¢
  • eCommerce transactions: 2.9% + 30¢
  • ACH Bank Transfers: 1% with a $1 minimum

Custom build

  • Terminal API and Reader SDK transactions: 2.6% + 10¢
  • In-App Payments SDK transactions: 2.9% + 30¢
  • Online Payment APIs transactions: 2.9% + 30¢

Square Payments

Square lets you accept payments both in-person and online. You can connect your existing website or set up a free one from scratch. 

Customers can also pay you remotely by card or ACH, or you can send them a checkout link over email or text. The alternative is to take payments over the phone and type it in yourself into the Square app or browser. 

There are in total nine payment methods that you can accept and their corresponding fees:

  • Online Invoices: 2.75% per invoice paid
  • Cash App: Free debit card payments for personal use or 2.75% per business payment received
  • Appointments Prepayments: 2.9% + 30¢ per guaranteed appointment
  • App Marketplace: Free
  • Manually Enter Transactions: 3.5% + 15¢ per transaction
  • Take payments with Square Point of Sale: 2.6% + 10¢ per swipe, tap, or dip
  • Turn your computer into a cloud POS with Virtual Terminal: 3.5% + 15¢ per transaction
  • E-commerce API: 3.5% + 15¢ per transaction
  • Hosted Checkout: 3.5% + 15¢ per transaction

Square Hardware 

Square Terminal

Square’s terminal is a sleek-looking piece of hardware that acts as an all-in-one card machine. It will take payments by tapping, inserting, or swiping and can print receipts. 

You can accept Apple Pay, Google Pay, other NFC payments, chip cards, and magstripe cards. 

The machine itself isn’t complicated to install and use, and Square will even manage payment disputes for you. When payment disputes occur, their team will deal with the bank for you, helping you avoid costly chargebacks.

You can connect the terminal to a computer or extend your existing POS by integrating it to custom and third-party POS such as Shopwave, TicketSocket, Mobi2Go, Flash, Local LIne, Jane, Remedly, and others. 

So, what does it cost then? It’s $299 annually or $27 per month. You also need to pay 2.6% + 10 cents per payment. 

Square Readers

As I’ve already mentioned, you get a free mobile card reader with your Square account. It’s a little piece of hardware that connects to your phone. It’s great if you’re on the move, and it works offline as well.

There’s also a $49 contactless and chip reader that is a standalone unit that connects wirelessly to your phone or tablet. Square says that it’s one of the fastest payment processors out there, with a processing speed of under 2 seconds. 

You’ll need a free Square POS app to connect both units to your phone. 

Square Register

With the Square Register, you can start selling your services or products right out of the box. It’s a standalone piece of equipment that is fully integrated and seamless. 

It has two displays; one in front of you, and the other presented to the customer that lets them pay and tip onscreen in just a few taps. You can, of course, connect additional peripherals to it, such as a barcode scanner, printer, and cash drawer. 

It will put you back $799 or $39 per month for 24 months. 

Other accessories

Apart from the hardware mentioned above, Square also offers: 

  • an iPad stand ($169), 
  • cash drawers ($129 and $249), 
  • printers (from$299), 
  • barcode scanners (from $119), 
  • scales (from $500), and 
  • complete restaurant kits (from $1,159)

Analytics 

Square Cash has an extensive dashboard that includes insights into your day-to-day business. You can get real-time sales reports or breakdowns of your top categories and products. 

Square has really gone above and beyond here with the amount of data that you can see. If you want to take your business to the next level, some of these reports are going to be crucial. 

See your most frequent and most recent visitors, and find out how much your average customer spends. Get daily summaries in your inbox or download detailed CSVs. 

You’ll get the most detailed data if you sign in with your browser and the most crucial data on your Square Dashboard app. 

Square Card 

  • No monthly service or maintenance fees
  • No minimum opening deposit
  • No overdraft fees
  • No minimum balance requirement
  • No foreign transaction fees
  • No ATM fees

Square business debit card comes with no minimum deposits and monthly fees. In fact, as soon as a Square sale comes in, you can spend the money with the card. You can, of course, add it to Apple Pay or Google Pay as well. 

If you’re a frequent traveler, you’ll be glad to know that there are no foreign transaction fees. Plus, there are no overdraft fees (usually $35 elsewhere) and no ATM fees. 

Your Square checking account is also FDIC insured up to $250,000. And I have to say that their Mastercard looks really nice with your custom signature, logo, and business name. 

Savings

Apart from checking account, Square also offers a business savings account with a 0.50% APY. It’s not groundbreaking, but it’s more than what most of the big banks have to offer. 

You get to organize your savings into folders for rainy day funds or taxes, but also new equipment for example. Put all the savings on auto by choosing what percentage of your sales will go towards them. If you’re feeling overwhelmed, pause them at any time. 

Loans

Square sellers can certainly make use of up to $250,000 in loans that the company is offering them. Every seller gets a custom offer from Square depending on their card sales. The minimum is easily obtainable $300.  

There’s no interest, only a flat fee that depends on the offer you get. You can repay loans on autopilot as a percentage of your daily sales, or prepay them, free of charge. The only requirement is that you repay a minimum of 1/18 of the initial balance every 60 days.

Payroll

Square offers so many tools and services that it’s nearly impossible to cover them all in this review. But, we decided to have a look at their payroll software. 

It’s priced at $5 monthly fee per person paid if you’re only paying your contractors, or $29/m + $5 per person if you also have employees.

So, what are the benefits of their Payroll service? You’ll be happy to know that taxes are automatically filled at local, state, and federal level. You can also automatically track and import tips and commissions, sync hours, review sales, and even talk to a payroll specialist. 

You can easily do all of this yourself without the need to hire a pricey bookkeeper. 

Customer Reviews

Unlike the Cash App, Square Cash has a high 4.7-star rating out of 5 on Trustpilot, with 88% of 3k+ reviewers giving it an excellent mark and only 6% a bad one. They have some of the best customer reviews I’ve ever seen in this space. 

Competitors

PayPal Zettle (Here) 

zettle

The payments giant has its mobile payments solution that is now called PayPal Zettle. It can integrate with other POS, accounting, and e-commerce apps, or you can use the Zettle App. It’s similar to Square in that they also offer iPad stands, retail kits, tap and chip readers, and so on.

QuickBooks GoPayment

quickbooks

Arguably the most famous accounting tool out there is also offering a payments solution for businesses. It seamlessly integrates with their accounting tool, so that might be an exciting option if you’re already using their accounting platform. New users can get the software from $12,50/m and the reader from $49. 

SumUp 

sumup

With SumUp, your business can accept card payments for just 2.75% per transaction. They also offer card readers ranging from $19 to $119. There are no hidden fees, no monthly fee, and best of all, no monthly contract. Only pay for what you use.

Shopify POS

Shopify pos

Shopify has taken e-commerce by storm, and now more than a million businesses use their services. All the usual hardware is available for purchase as well. Their rates start at 2.4% + 0¢ USD up to 2.9% + 30¢. And from $29/m to $299/m.

The bottom line

Square has made a great business ecosystem for entrepreneurs. Need a POS? You got it. Need a checking and savings account? You got it. Loans? Yup. Payroll, marketing, gift cards, loyalty program, and whatever else you can think of – Square has implemented into its all-in-one business toolkit.