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Square VS Merchant Account: Which Is Better For Your Business?

Learn how to determine when Square is the best option for your small business and when it's time to get a merchant account instead.

    Frank Kehl
  • 3 comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Frank Kehl

Frank Kehl

Expert Analyst & Reviewer at Merchant Maverick
Frank Kehl has been researching and analyzing merchant services, payment gateways, and international money transfer services since 2015. He has a Bachelor of Science degree from Penn State and a Juris Doctorate from the Ventura College of Law.
Frank Kehl
View Frank Kehl's professional experience on LinkedIn.

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3 Comments

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    clint

    This has probably been asked somewhere before, but are there any (decent) companies that are similar to square, which have flat rate pricing like square but also lets you set up a Merchant Account? I know interchange rates are highly touted, but in a typical month my cc charges are $800/mo or less, so I wouldn’t really benefit that much from using interchange. I like the convenience of square, but have read too many horror stories on how they can withhold funds for whatever reason they see fit, so having a merchant account is a must for me.

      This comment refers to an earlier version of this post and may be outdated.

      Curtis DeCora

      You’re really better off sticking with Square or a comparable platform. If you elected a merchant account, you’re going to run similar fees with batch, and statement fees.

      The real advantage lies in the form of leveraging your monthly volume for purposes of capital, equipment purchases, etc. You cannot do that with Square, nor do any of my financing partners work with Square. Also, to attest to your comment about holding funds. They have held funds for a number of folks. They ended up electing to choose a merchant account. They did leverage that monthly volume as a startup and were able to purchase new equipment, company vehicle, and the like, as well as invest into a customer-centric marketing strategy.

      Square is great if you’re running some low volume or minimal transactions. I really say it’s for hobbyist.

        This comment refers to an earlier version of this post and may be outdated.

        Logan

        The one I’ve ran into that allows this, as a merchant account provider myself, is Shopkeep.

          This comment refers to an earlier version of this post and may be outdated.

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