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Join For FreeSquare Banking includes business checking and savings accounts, debit cards, and loans for Square users.
Total Rating | 3.8 |
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Fees & Rates3.5 | |
Services5.0 | |
Rewards2.7 | |
Features2.9 | |
Eligibility Requirements4.3 | |
Application Process4.6 | |
Sales & Advertising Transparency3.9 | |
Customer Service4.4 | |
User Reviews4.3 |
APY
1.75%Monthly Fee
$0Business Size
Sole proprietors onlyTable of Contents
Square Banking is a business banking option available exclusively to Square sellers. With a full suite of banking services, from sales to checking and savings accounts to loans, Square Banking works seamlessly with all the small business management tools in the Square universe.
One of Square Banking’s top features is the instant availability of funds from sales you make through your Square POS or online store. Could Square Banking be the right banking option for your small business? Let’s find out.
Square makes it onto our list of best online business bank accounts for its high APY and no monthly fees. However, it’s available only to small businesses run as sole proprietorships. If your business is an LLC, partnership, or corporation, Square Banking is not available. Check out the rest of our best small business bank picks to find an alternative that works for your LLC, partnership, or corporation.
Services5.0 |
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Banking Services 5.0 |
Online Portal & Mobile App 5.0 |
Square offers the following business banking services:
Square’s banking accounts also integrate with other Square business services, including:
An online banking portal and mobile app are also available to make account management simple. Because Square isn’t lacking when it comes to services, we gave it a perfect 5-star rating in this category.
Rewards2.7 |
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Quality & Value Of Earned Rewards 2.7 |
Square Banking is currently advertising an APY of 1.75% making this a good option for anyone looking for a high-yield savings account. Square Banking also includes a debit card and virtually no fees.
Square Banking offers the convenience of business banking services that encompass all your financial needs, from credit card processing and loans to checking and savings, with seamless transfers between all elements. For merchants already using Square’s POS and other business and time-management functions, that’s a notable perk.
Even better, Square merchants who use Square Banking will have almost instantaneous access to funds from sales.
Compared to other business banking services, Square Banking offers some nice perks that small business owners should appreciate:
Users should be aware that Square is a financial services company, not a bank. Banking services are provided by various FDIC members, including Sutton Bank.
Unfortunately, Square does not offer any cash-back rewards or a welcome bonus for signing up, falling short in terms of some of the rewards and perks offered by some of its competitors. This contributed to our rating of 2.7/5 in this category.
While Square offers a decent APY, if you are looking for a small business banking option with better rewards, check out the best high-yield business savings accounts.
Fees & Rates3.5 |
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Pricing 4.7 |
Transaction Fees 2.2 |
Transparency 3.0 |
Square Banking compares favorably to other business banking options when it comes to fees. Square Banking users can avoid most fees commonly associated with business banking.
Fee | Cost |
---|---|
Monthly Fee | $0/month |
Opening Deposit | $0 |
ACH Fee | 1% |
ATM Fee | None |
Foreign Transaction Fee | 0% |
Deposit Fee | N/A |
When you use Square Checking, you can cross these off the list:
When most online banks say no monthly fees, they are usually just referring to your monthly maintenance fee. With Square banking the lack of nearly all monthly fees or other banking fees is impressive. The only real downside is if you process ACH payments regularly, Square Banking’s 1% ACH fee is higher than some competitors that offer no ACH fee.
Unfortunately, wire transfers aren’t an option with your Square banking account. We did have to take this into consideration, which led to our rating of 3.5/5 for Square’s pricing.
Eligibility Requirements4.3 |
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Eligibility Qualifications 4.4 |
Eligibility Availability 4.5 |
Eligibility Transparency 4.0 |
Square Banking is available to Square users aged 18+. It’s free to sign up for a Square account, and the process only takes two minutes, according to Square.
Requirement | Eligibility |
---|---|
Business Type | Sole proprietors only |
Credit Score | N/A |
Location | US |
Revenue | N/A |
You can set up a Square checking account that includes a debit card through your Square POS or Dashboard — simply verify your information and personalize your business debit card.
Square Savings is available only to US-based Square customers. Eligible businesses must be sole proprietorships, rather than LLCs or corporations. These limitations contributed to our rating of 4.3/5 for eligibility requirements. Although Square intends to expand to offer Square Banking to more types of businesses, there is no date attached to those plans. You do not need an EIN to apply.
Other than those limitations, all Square users are eligible for Square Banking services. You won’t need to worry about a credit check, income verification, or a hard pull that can affect your credit rating.
Application Process4.6 |
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Ease & Transparency Of Application 3.6 |
Application Timeline 5.0 |
Opening Deposit Requirements 5.0 |
Signing up for a Square bank account is easy. If you’re already a Square user, you can open an account right from your dashboard by confirming your information and personalizing your Square debit card.
If you aren’t a Square user, you can get started by signing up for a Square account. While Square does note that the process takes just a few minutes, it doesn’t provide an outline of the process before signing up.
Despite the lack of transparency, the application process is fast and easy, and there are no deposits required to open an account. Overall, we give Square a 4.6/5 for its application process.
Features2.9 |
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Transaction Types Supported 2.0 |
Transaction Limits 3.0 |
Standard Banking Features 3.0 |
Finance Management Features 3.0 |
Extras 4.0 |
Square Banking’s most attractive feature is that it exists right in the middle of your small business financial universe. Square Banking may be the final link for businesses that already use Square for transaction processing.
Feature | Availability | Summary |
---|---|---|
Cards | Use the Square ATM card fee-free | |
Transfers | 1% ACH transfer fees | |
Savings | Automate transfers to high-yield account | |
Cash Deposits | Cash deposit not available | |
Mobile Deposits | Mobile deposit of checks | |
Bill Payment | Fee-free bill-pay services | |
Access To Credit | Users may be eligible for up to $250K in loans | |
Merchant Services | Square banking integrates with Square POS | |
Mobile Apps | Mobile app for iOS and Android |
Whether you manage your business through the Square POS app or use the Square online dashboard, you can control all your small business finance needs from one place when you add Square Banking to the mix. Here’s how that plays out:
One feature that matters to people working with limited amounts of capital is how quickly you’ll be able to access funding. Square does an excellent job in that area, with funds from Square sales available immediately for use.
ATM withdrawals are limited to $500/transaction, $1,000/day and per week, and $2,000/month. Here’s a quick rundown of funds availability for Square banking customers:
Transaction Type | Processing Time |
---|---|
Square Sales | Within 15 mins |
ACH Transfers | 1-2 days |
Mobile Check Deposits | 1-5 days |
While Square banking does have a lot going for it, it also falls short in a few areas. Square does not support incoming, outgoing, or international wire transfers. If you need to write checks from your account, this is not an option. Square does not support cash deposits. Square also lacks some of the financial management features you’ll find among its competitors, including expense tracking and bill pay.
Taking all of this into consideration, we rated Square Banking 2.9/5 for its features.
Sales & Advertising Transparency3.9 |
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Sales Practices 4.0 |
Web Presence 3.3 |
Square isn’t the most transparent when it comes to its banking products, but you can find most of the information you need by clicking around the website and visiting the Square Support Center. Square also has active social media profiles with a mix of positive and negative customer reviews. Overall, there are no glaring red flags, although it would be nice to have more information compiled and disclosed in one spot. We gave Square a 3.9/5 rating for its sales and advertising transparency.
Customer Service4.4 |
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Personal Support 3.0 |
Self-Service 5.0 |
Square Banking does not include dedicated customer support for users needing a little extra help. However, users can access support through the usual Square support channels, which are rated fairly well by users.
Square Business Banking Customer Service | Availability |
---|---|
Phone Support | |
Email Support | |
Support Tickets | |
Live Chat | |
Dedicated Support Representative | |
Knowledge Base or Help Center | |
Videos & Tutorials | |
Company Blog | |
Social Media |
One potential immediate need can be addressed with a fix that comes in handy for anyone who loses track of their Square debit card: You can temporarily deactivate your card from right within the Square app.
For any other banking support needed, contact Square via these channels:
Mixed reviews for the quality of support as well as the lack of dedicated support options lowered Square’s score to 4.4/5 in this category.
User Reviews4.3 |
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User Feedback 4.0 |
Review Site Aggregate 4.4 |
Launched in July 2021, Square Banking is a relatively new financial product, and there aren’t a lot of user reviews available. And because Square Banking is part of a much larger sales ecosystem, it’s a bit tricky to find user reviews that are specific to any one function like banking. To glean clues, we can consider users’ overall satisfaction with Square. Although it’s possible to find dissatisfaction and complaints, overall, Square users like what they see and often request even more Square functions. It is this overall positive response from users that contributed to our 4.3/5 rating.
Square is a Better Business Bureau-accredited business with a BBB rating of A+ with 1,037 complaints closed over the past 12 months. A quick review of complaints to BBB over the lifespan of Square Banking did reveal a few banking-specific complaints. It appears that Square responds to BBB complaints, and the majority of them have been resolved to customers’ satisfaction.
On Trustpilot, Square has a 4/5 rating with 4,400+ reviews. G2 has now broken out banking reviews from other Square products. With just 10 reviews so far, Square Banking has a solid 4.9/5 stars. We will continue to check for more banking-specific reviews of Square’s services we can use to update this review.
While Square is a financial service company and not a bank, Square Banking services are provided by Sutton Bank, member FDIC. All Square Banking accounts are FDIC-insured to the legal limits.
As a parent company, Square is secure. Square monitors payments for fraud and maintains a team of fraud experts. Square is PCI-compliant and handles data security for its users. Square hardware and software are engineered with safety in mind. Payments are encrypted to protect them, with no setup required by merchants.
Users can set up two-step verification to add security to their Square account, set user permissions to control account access, and receive feedback from Square regarding password and account security.
Square Banking Review | |
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Business Size | Sole proprietors only |
APY | 1.75% on savings |
Choose If You Need | Business banking for Square sellers |
If you currently use Square for your small business payment processing, Square Banking could be a great choice. Square Banking services help small business owners manage their finances by giving instant access to funds from sales made using Square’s payment processing. Square Banking includes features that let you set and meet savings goals almost effortlessly.
We see some drawbacks to Square Banking, such as the inability to make cash deposits. If you’re one of the many merchants who take payment overwhelmingly via credit or debit card, that may not be a noteworthy shortcoming. Additional red flags to keep in mind include the lack of dedicated support, no wire transfers, and limitations on transactions. These factors led to an overall score of 3.8 during our comprehensive review.
If you’ve looked into opening a business banking account but are hesitant because you don’t have the required documentation or a verifiable income, Square Banking could be the all-in-one solution you need.
Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business banking products.
When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.
The Merchant Maverick Seal of Approval 🏆
Square Business Banking |
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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square Business Banking for yourself.
The Merchant Maverick Seal of Approval 🏆
Square Business Banking |
---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square Business Banking for yourself.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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