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Square Vs Merchant Account

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Melissa Johnson

Melissa Johnson

Melissa Johnson has been writing about payment processing and mobile payments since 2014, and has been quoted in articles for Credit Karma and The Next Web, among others. She graduated from The University of Kansas in 2010 with bachelor's degrees in English and journalism.
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    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.

      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.


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

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