Square Checking Account Review for Business (2024)

You've probably heard of Square – the popular mobile payment processing service that makes it easy for businesses to accept payments on the go. But did you know they also offer a checking account for their business customers?

The Square Checking account helps business owners to manage their finances and make transactions easier. In this review, we'll take an in-depth look at what this checking account has to offer and how the Wise Business international account could be another suitable option for you.

Wise could help you save when sending and receiving international payments.

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Square Business Account Overview

The Square Business account is a checking account targeted toward small businesses that use the Square payment system.

Key Takeaways¹ ² ³

Square business checking is directly connected to your income from Square payment services Only Square payment service customers, such their Point-of-sale (POS) system, are eligible for a Square business account The Square business account is free for Square users with no monthly maintenance fee, minimum balance requirement, or overdraft fee Instant transfers of earnings with Square are made at no extra cost to the Square checking account Other business accounts can be linked to the Square POS and payment processing system - the difference is that incoming free transfers occur every 1-2 business days and instant transfers cost 1.75% of the transfer amount

Businesses using Square can receive funds through their Square Business account. Though Square offers the possibility to transfer funds into a free business checking account, customers can also transfer them directly to their bank account.

The Square business checking account doesn't charge any monthly fees or minimum balance requirements, which makes it a good option for businesses that don't need a full-fledged account.

You’ll also get access to discounts on products like Square Register hardware, which is useful if you run a retail business. The Square dashboard and point-of-sale system are also helpful for business owners who need to keep track of their sales, customers, and inventory.

The app is easy to use and makes tracking expenses simple, with instant notifications whenever you make a purchase or transfer money. But, be aware, that there are plenty of alternatives out there.

Square Checking Overview
Square Business Account: Membership and Eligibility Square Fees, Limits, and Costs for Business Checking Pros and Cons of Square Business Checking Other Square Business Banking Features Square Business Debit Card Manage, send, and receive international payments easily with Wise

Square Business Account: Membership and Eligibility

Before you can open a Square checking account, you’ll need to meet certain requirements. If you’re already selling on Square, you can get your business checking immediately. Otherwise, you’ll have to join Square as a seller first.

Square business checking vs other business bank account:

A primary benefit of the Square business checking account is that you don’t get charged any fees for making instant transfers into it after getting paid via Square POS or payment processing services.

If you choose to instead transfer funds from your Square system to your business account, you will get the funds within 1-2 business days. But, if you need the funds immediately, then you will need to make an instant transfer for 1.75% of the transfer amount.

To be eligible for the Square business checking account, your business must⁴:

• Be based in the United States
• Have a Social Security Number (or ITIN), date of birth, full name, US mailing address
• Have a valid US address and contact information
• Have been registered with the IRS as a legal business entity
• Pass identity verification and Know Your Customer (KYC) requirements
• Have a valid US debit card or bank account to link to your Square business checking account

Once you’ve met all the eligibility requirements, you can open your Square small business banking account and start using it.

Open a free business
account with Wise 🚀

US account opening is free while other markets may vary
Pay contractors at rates 19x cheaper than PayPal
Pay a one-time fee for local bank account details and free non-wire incoming transfers (GBP, EUR, AUD, CAD, and more) transfers

Square Fees, Limits, and Costs for Business Checking

Square checking accounts come with a few fees and limits that you should be aware of. For instance, the way in which you send transfers should be monitored as you might receive an extra charge. Take a look at a few examples of fees and limits below.

Transfer Fees

Although there aren’t any fees for the account itself, Square does have some transfer fees you might want to take note of.

Sending money from your Square Checking to a linked account⁵ ⁶:

Sending money from your Square checking account is split into three different transfer types.

Instant Transfer Fee

An instant transfer can be done 24/7 using a Square debit card to send money to your linked account. The benefit of this type of transfer is that you receive your funds immediately. But, you will have to pay a 1.75% fee per transaction.

Same-Day Transfer Fee

This type of transfer is similar to instant transfers where you are charged a 1.75% account transfer. With the same-day transfer, the customer can set up an automatic transfer during each working day.

Manual Transfer Fee

If you wish to transfer money without the extra Square fee, you can use the manual transfer option to send available funds on your Square account to a linked bank account. The difference with this transfer is that it takes longer and, of course, requires you to go through the transfer process yourself.

After sending the funds, you will receive them the next business day with no extra charge.

Limits⁷

The limits noted here are for the Square checking account and the Square Business Debit.

• Direct deposit - Limits can range between $2,000 to $50,000 per day via ACH and $500 to $2000 per day through add money deposit.
• Maximum spend per transaction has a limit of $10,000, while maximum aggregate spend per day is $25,000, $50,000 per week, and $150,000 per month.
• Maximum withdrawal at an ATM or POS device per transaction is $500 - $3,000, maximum aggregate withdrawal per day is $1,000 - 3,000, $1,000 - $7,000 per week, and $2,000 - $10,000 per month

Pros and Cons of Square Business Checking

The Square checking account comes with some desirable features that make it stand out from other accounts.

Pros:

• It has no monthly fees, minimum balance requirements, overdraft fees, or foreign transaction fees⁸
• You can instantly access funds from your account with the instant deposit feature
• You can automatically transfer money between accounts, making it easier to manage multiple accounts
• You get free access to Square’s suite of business tools, like invoicing and analytics
• Mobile check deposit
• No credit checks

Cons:

• Only available to Square sellers
• You can only transfer earnings into US bank accounts and debit cards
• Accounts receive a 1.50% fee for instant deposits from Square checking to other accounts
• You must also maintain a minimum balance of $25
• ATM withdrawal limits

Open a free business
account with Wise 🚀

US account opening is free while other markets may vary
Pay contractors at rates 19x cheaper than PayPal
Pay a one-time fee for local bank account details and free non-wire incoming transfers (GBP, EUR, AUD, CAD, and more) transfers

Other Square Business Banking Features

Aside from the checking account, there’s also a range of other Square business bank account features. Let’s go over some of them:

• Business Loans & Financing⁹: Although invite-only depending on your business data, you can choose a loan amount to get funding on your venture. Square offers loans anywhere from $300 - $250,000 with multiple repayment methods.
• Point of Sale System: Square offers a payment processing system that’s designed specifically for businesses. Accept payments from customers, track sales and inventory, and manage employee time cards.
• Payroll: With this feature, you can pay your employees without having to worry about manually entering hours worked and calculating taxes. It also integrates with Square’s POS system and payment processing service, so everything is handled in one place.
• Contactless and Chip Reader: Accept payments quickly and securely. This device is compatible with all major credit cards, including Apple Pay, Google Pay, and Samsung Pay.
• Savings Account: Square also offers a savings account to help you save money and earn interest. It also allows you to set up automatic transfers from your checking account, so you can easily move money into the savings account without thinking twice.
• Integrations with Other Services: Make use of integrations with other services like QuickBooks and Xero, allowing you to better manage your finances.

Note that Square charges different fees for payment processing on POS systems, industry-specific products, and more.

Square Business Debit Card

The Square checking account comes with its own debit card. This card can be used to make purchases, withdraw cash from ATMs, and transfer funds between accounts.

The card also comes with a few extra benefits that are designed to help you manage your daily finances more seamlessly. For example, you can set up alerts for when payments arrive or exceed certain amounts, and you can even track expenses if you link it to an online expense tracking tool like Expensify or Wave.

The Square business debit card also offers an extra layer of security with its EMV chip technology, which is designed to protect your financial information from fraud and identity theft. Plus, the card can be used at any terminal that accepts Mastercard, so you won't have to worry about being limited by geographic location or merchant type when making payments.

🚀 The Wise Business Debit Card helps sole proprietors and single-member LLCs organize expenses under one account and reconcile them with leading accounting tools. 👉 Get started with no subscription or monthly fees and pay online or in-store in no time in 55+ currencies and 200+ countries.

Open a free business
account with Wise 🚀

US account opening is free while other markets may vary

Need to manage, send, or receive international payments? Try Wise

Square checking accounts let business owners manage their finances with ease and simplify payment processing. But, Wise Business can be a good option if they need to send payments across currencies. Since Square currently accepts payments from a limited set of countries, you may want to tap into Wise Business where you can operate your company in 40+ currencies.

Wise Business customers can start an account for free with a one-time fee to get local account details.

Square customers can either connect their POS account directly to Wise or transfer funds from their Square Checking account into their Wise Business account.

• Get local account details in up to 8+ currencies, such as USD, AUD, CAD, EUR, and GBP for a one-time fee
• Get payments (non-wire) for free with local account details
• Hold money in up to 40+ currencies and save on expenses with Wise’s transparent and low-cost fees
• No monthly fees or minimum load requirement on the account

Open a free business
account with Wise 🚀

US account opening is free while other markets may vary

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Sources:

1.Get Started with Square Checking | Square Support Center - US
2.Small Business Checking Accounts | Square Checking
3.Same-Day and Instant Transfers—Get Paid Instantly | Square Transfers
4.How to Open a Business Bank Account | Square
5.Same-Day and Instant Transfers—Get Paid Instantly | Square Transfers
6.Transfer Options with Square | Square Support Center - US
7. Square Checking Terms of Service
8. Small Business Checking Accounts | Square Checking
9. Small Business Loans & Business Financing | Square Loans
10. https://www.trustpilot.com/review/wise.com