Square Banking Review: Financial Services & Business Checking

Pros

• $0 opening deposit
• Instant availability of funds from Square transactions
• Automatic transfers to customizable savings folders
• High APY
• Access to Square Loans

Cons

• ATM withdrawal limits
• No cash deposits
• Deposit and spend caps

What Is Square Banking

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 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.

Spoiler: We think Square offers one of the best banks available for small business owners. 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.

Square Banking Rewards & Perks

Square Banking may doesn’t offer much in the way of special rewards. What it does offer is 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.

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.

Compared to other business banking services, Square Banking offers some nice perks that small business owners should appreciate:

• No account minimums
• Instant account setup
• $0 minimum deposit
• No credit checks
• Funds from Square sales are instantly available
• Automated transfers to high-yield savings
• 24/7 access to funds
• eWallet options including Apple Pay and Google Pay
• View sales and savings in POS and Dashboard
• Free instant transfers to internal or external accounts
• Eligibility for Square Loans ($300-$250,000)

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.

If you are looking for a small business banking option with better rewards, check out the best high-yield business savings accounts.

Square Banking Pricing & Fees

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. When you use Square Checking, you can cross these off the list:

• No monthly service or maintenance fees
• No minimum balance fees
• No transfer fees, except for instant transfers (1.5%)
• No fees for bill pay
• No foreign transaction fees
• No ATM fees, though the ATM owner may charge you
• No overdraft fees, because transactions that would result in an overdraft will not be processed

Square Banking Eligibility Requirements

Square Banking is available to Square users aged 18+. It’s free to sign up for a Square account, and signing up takes only two minutes, according to Square. 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. 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.

Square Banking Features

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.

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:

• Transaction Reports: Users can download transaction reports directly from the Square POS or online dashboard. That will help you with balancing your books, doing your taxes, and knowing how much cash you have available, with no third-party integrations needed.
• Instant Access To Cash: Transactions processed on your Square merchant account are transferred instantly to your linked Square Checking account. That means you can access your money faster than if you first had to transfer it to a bank account. Compare that to funds processed via Square and transferred to an external account, which can take up to two business days, or longer if your transfer falls on the wrong side of the transfer deadline or a weekend. If your business operates with a tight cash flow, Square Banking could be a lifesaver. (Of course, another option is to use Square Instant Transfers or a Square Debit Card without setting up a Square Banking account.)
• Easy Access To Funds: Square’s debit card works Apple Pay and Google Pay digital wallets. Setting the card up in a digital wallet allows you to whip out your phone or compatible smartwatch at NFC-enabled payment terminals or more seamlessly pay for in-app or online purchases. You can also use the Square debit card at ATMs, although your withdrawals are limited to $500 per transaction, $1,000 per day and per week, and $2,000 per month. Square does not charge an ATM fee, although the owner of the ATM you use may do so.
• International Use: Although Square Banking is available only to US-based merchants, the Square debit card can be used internationally wherever MasterCard is accepted. Square does not charge foreign transaction fees.
• Automatic Transfers: Move your money around the Square Banking system without limits or fees. Funds from Square sales are automatically transferred to your Square Checking account. From there, you can access the cash using your debit card, move money to savings, or pay off your Square Loan, if you have one. You also can send money to an external linked account in one to three business days (for free) or instantly (for a fee). The Square Bank includes account and routing numbers, like a traditional bank, that you can use to pay bills and add funds from an external account, with no fees. It’s important to note that while you can make transfers from an internal account, you cannot deposit cash or checks into your Square Checking account.
• Targeted Savings: Set up automated savings, and you can move a percentage of each day’s Square sales revenue into a dedicated savings folder within your Square Savings account. That’s a boon to small business owners who may find it difficult to set aside money for taxes, emergency use, or business investments. Setting up automatic transfers means you can separate those needs from your day-to-day operating expenses and easily save for multiple priorities that your business will need as you grow.
• Access To Credit: Square Banking services include access to small business loans from $300-$250,000. Loan offers are based on your card sales through Square and don’t include ongoing interest, just a flat fee. You can prepay the loan without penalty, but doing so will not decrease the total amount owed. Repayment happens automatically with a percentage of daily card sales through Square, so the amount you pay varies with the pace of your sales. To stay current on the loan, you must repay a minimum of 1/18 of the initial balance every 60 days. You don’t even have to apply; you’ll receive loan offers automatically and immediate approval, with no lengthy application or credit check.
• Mobile Check Deposit: Use your smartphone to open the Square POS app to deposit checks. Checks may be made out to the owner’s name or the business name, and checks must be endorsed.

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:

Looking For Additional Features? Here are Square’s Other Business Services

Square offers much more than banking services, of course. Here are some of the other tools Square offers to small business owners:

• Square POS
• Square Payroll
• Square Online
• Square
• Square Loyalty
• Square Marketing
• Square Inventory
• Square Invoices
• Square Capital
• Square Appointments
• Square Estimates
• Square Customer Directory

Square Banking Customer Service

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 usually rated fairly well by users. 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:

• Phone: Contact a live rep between 6 AM and 6 PM Pacific time, Monday through Friday.
• Email: If you have a Square account, you can sign in and send a detailed email message.
• Live Chat: A chatbot guides you through a series of questions, narrowing your topic.
• Community Forum: Check out the self-help resources on the Square Seller Community.
• Social Media: Square maintains a Twitter support page for technical questions and responds to messages on its Facebook page.

Square Banking Reviews & Customer Complaints

Launched in July 2021, Square Banking is a relatively new financial product, and there aren’t a lot of user reviews available. Square is a Better Business Bureau-accredited business with a BBB rating of A+ with 1,144 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.

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.

On Trustpilot, Square has a 4.4/5 rating with 3,969 reviews. G2 has now broken out banking reviews from other Square products. With just 10 reviews so far, Square Banking has a solid 5/5 stars. We will continue to check for more banking-specific reviews of Square’s services we can use to update this review.

Negative Square Banking Reviews & Complaints

• No option to pay loans faster
• Rates are not the best available
• Hard to reach live support

Positive Square Banking Reviews

• Easy to use
• Good customer support
• Quick access to cash
• Useful tools for growing businesses, including loans
• Convenient linked services

Is Square Banking Safe?

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.

Final Verdict: Is Square Banking Worth It?

If you currently use Square for your small business payment processing, Square Banking could be a great choice. It’s one easy way to separate your business and personal finances, something many small business owners struggle with. If you’ve been operating your business using your personal bank account, you should take this opportunity to correct course and open a business bank account. After all, Square does make it easy, and it’s smart to use business banking services.

Compared to the more complicated process of opening a traditional business bank account, Square provides an easy alternative. With no credit check, no proof of income, no minimum balance, and no fees, Square Banking is an attractive alternative to traditional business banking. And, for Square merchants, it’s one of the easiest ways to open a business bank account.

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.

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.

Square Bank FAQs

The Merchant Maverick Seal of Approval 🏆

Square Business Banking	Apply Now

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	Apply Now

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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