What Is Square Online Checkout? Your Guide To Using This New Square Payment Option
As businesses everywhere race to prioritize eCommerce in a world ravaged by COVID-19, payments giant Square has launched a new online payment tool called Square Online Checkout. This service is intended to condense the eCommerce experience down to a simple link or button, making online selling easier than ever for both the merchant and the customer. If you want to sell items or services online — or even accept donations — without building an online store, you’ll want to read on.
In this article, we’re going to explain just what Square Online Checkout is, how it works, and how using it can benefit your business.
We should mention that Square Online Checkout is not to be confused with Square Checkout, a separate hosted payment page solution built on top of Square’s API.
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What Is Square Online Checkout?
Seen as an effort by Square to compete with the flexible eCommerce capabilities of PayPal, Square Online Checkout allows all would-be online sellers — particularly those who don’t have a full online store and aren’t looking to build one — to accept payments from customers via a simple link. The buyer does not need to have an account with Square. All the buyer needs to provide is their name, email address, and credit card number.
Let’s look at how this works in practice.
How Square Online Checkout Works
When you use Square Online Checkout, you generate a link or button that can be posted to an email, a text message, your social media accounts, and/or your blog or website. This link can be clicked on by a buyer to purchase whatever product or service you’re offering. It can also be used by the buyer to pay for a prior purchase or to offer a donation — essentially, the link can be used to transfer money for any legal purpose.
An important caveat: Square Online Checkout links can only be used domestically within the US.
How To Set Up & Accept Payments With Square Online Checkout
Let’s walk through the steps required to set up an Online Checkout link and accept payments. Don’t worry — it’s pretty easy!
1. Create A Square Account
To create a Square Online Checkout link, you’ll need to have a Square account. Luckily, Square is free to use, so this step won’t cost you anything.
Here’s our complete guide to creating a Square account. I’ll summarize it thusly:
- Go to Square and click the “Get Started” button
- Enter your email address, create a password, and select your country of residence (only US residents can use Online Checkout links)
- Enter the information Square will subsequently ask of you (the last four digits of your Social Security number, your home & shipping addresses, your phone number, and some basic questions about how you intend to use Square)
Congrats — you now have a Square account!
2. Get A Link
Once you have a Square account, you can create Online Checkout links from your online Square Dashboard on the website or from the Square app (available for iOS and Android devices).
Square’s guidelines for creating Online Checkout links are as follows:
- Head to the Homepage of your online Square Dashboard.
- Click Create a checkout link in the Online Checkout section.
- Next to Purpose of link, choose either Collect payments, Sell items or Accept Donations.
- Enter a name for your link – this will be displayed to the customer.
- If prompted, enter the amount you want to charge.
- Click Save to create a checkout link.
- Select Copy, and share the link anywhere.
And if you want to create an Online Checkout link from the Square app, here’s how to do it:
- Enter the amount you want to charge in the keypad
- Tap Charge.
- Tap Online Checkout.
- Write in the details of what is being paid for.
- Tap Get link. Have your customer scan the QR code with their phone, or share the link anyway you want — text, email, social, etc.
You can also create Online Checkout links through the Settings tab or the Edit Item page.
3. Embed The Link On Your Website Or Blog
After you’ve created the link via the process outlined above and selected Copy (or Get link if you’re using the app), embedding the link on your blog or website is as simple as going to your blog post editor or website editor and pasting in the link the same way you would copy & paste anything else. If you’re using a Windows PC, you just right-click where you want to put the link and then select Paste from the menu. That’s it!
4. Or, Share The Link
To send the link directly to someone or to a group of recipients, you just go through the process of creating the link and then paste it into an email or a text message. You can also post it to your social media channels. Include the link in a post, put the link in your bio, or send it to someone in a DM using any platform you wish. You can share your link just as you would share any other kind of message.
5. Start Accepting Payments
Once you’ve created and shared your link, you can immediately start accepting payments, assuming you’ve correctly entered your bank account number when setting up your Square account. It’s that simple.
Of course, your ability to accept payments won’t be unlimited. Square has a $50,000 per-transaction limit, so you won’t be able to accept massive payments via Online Checkout. And if the transaction is a donation, there’s a $5,000 per-transaction limit.
On the customer end, the process couldn’t be simpler. Whereas PayPal’s checkout buttons require the buyer to have a PayPal account, your customers will not need a Square account in order to make a payment via a Square Online Checkout link. All the customer is prompted to provide is their name, email address, and credit card number.
Once the payment is made, the customer will be emailed a basic receipt. As of now, you can’t create a customized receipt for customers when they make a purchase via an Online Checkout link.
How Much Does Square Online Checkout Cost?
Payments accepted via Square Online Checkout links will be subject to Square’s standard online processing fee of 2.9% + $0.30 per transaction. That’s the only fee involved here — there are no monthly or annual fees associated with having a Square account.
One thing to keep in mind: Square discounts don’t work with Online Checkout links.
The Benefits Of Using Square Online Checkout
Here are some of the advantages of using Square Online Checkout:
- Easy to use, simple to set up
- Customers don’t need a Square account — just a credit card
- You can run reports to track the number of sales generated from each checkout link — easily see which links are performing best
- New sellers can create subscriptions checkouts
- You can customize the Checkout Button style and text to reflect your branding
- You can create a marketing campaign with checkout links from your online Square Dashboard
Square Online Checkout FAQs
Let’s answer some basic questions about Square’s new Online Checkout service.
Do I have to have a Square account to use Square Online Checkout Links?
In order to set up an Online Checkout link and receive payments, yes, you do need a Square account. Luckily, you can easily and freely get yourself a Square account by signing up on their website.
In order to make a purchase or donation using an Online checkout link, no, you do not need a Square account.
Is there a transaction limit for Square Online Checkout Links?
Yes. Square’s transaction limit for Online Checkout links is $50,000 for purchases and $5,000 for donations.
How much do Square Online Checkout Links cost?
It’s free to set up the link, but Square will take a 2.9% + $0.30 fee from each transaction.
Can I create subscription checkout links?
Yes, but only if you are a new seller. If you’ve just set up a Square account to start selling online, you can set up a subscription checkout link with Online Checkout to accept weekly, monthly, quarterly, or annual payments from buyers — all from a single link. Here’s how to create a subscription checkout link.
Existing Square sellers will have to use Square Invoices to set up recurring payments.
Can I send the same Online Checkout Link to different customers?
Yes. You can send one link to an entire mailing list or even post it to social media for the use of anyone who sees it.
A company just sent me an Online Checkout link. What do I do?
Just enter your name, email address, and credit card number (that is, if you want to pay it!).
Is Square Online Checkout safe?
Yes. Square is regarded as having a high degree of security by eCommerce standards and is fully PCI compliant.
Is Square Online Checkout Right For Me?
If you’re looking for an easy way to sell items or services (or accept donations) online, Square Online Checkout makes eCommerce simpler than ever — for both you and your customers.
If, on the other hand, you’re looking to set up a full eCommerce website, sell internationally, or if you want to take advantage of Square’s more advanced eCommerce features like discounts and customized receipts, you might want to take advantage of Square’s other eCommerce tools. You can also check out Merchant Maverick’s shopping cart software reviews to get an idea of the full range of options available.