Business

Square for small business: Review and features

A full review of Square for small business: accounts, fees, features, and countries supported.

Square combines payment processing, point-of-sale software, and financial services into one system. It’s designed for a wide range of businesses, from sole traders and cafes to retail shops and service providers. This review covers Square’s business accounts, features, fees, and more, so you can decide whether it’s the right fit for you.

If your business also has employees traveling internationally, we’ll show how Holafly for Business can keep your team connected.

In this article

What business accounts does Square offer?

Square Banking is a suite of business financial tools primarily for businesses using Square for payment processing.

It has two deposit accounts: Square Checking and Square Savings.

Square business checking account is a day-to-day business account for fast cash flow. Sales processed through Square are available in the account immediately, without the delays of bank transfers.
Square Savings is a high-yield account to help businesses set aside reserves. You can set a percentage of every Square sale to transfer to your account and allocate funds for different purposes, such as taxes or equipment.

Square for business review: A breakdown

Here’s a closer look at what Square offers across features, fees, regulations, and services.

Features

Square’s business accounts integrate with its payment ecosystem, which is one of its main advantages.

Instant access to funds: Sales processed through Square appear in your Square Checking account immediately
Square Debit Card: A physical or digital Mastercard to spend your balance anywhere Mastercard is accepted
Automated savings: Set a percentage of every sale to transfer automatically into Square Savings folders for specific purposes
Dashboard integration: Both accounts connect to the Square Dashboard and POS app to keep cash flow and sales data in one place

Square fees for business

Square doesn’t charge fees for account maintenance but applies per-transaction rates for payment processing.

Account fees: $0 monthly maintenance, $0 minimum balance, $0 overdraft fees
In-person payments (tap, dip, or swipe): 2.6% + 15¢ per transaction
Online payments and invoices: 3.3% + 30¢ on the free plan, or 2.9% + 30¢ on the Plus plan
Manually keyed-in payments: 3.5% + 15¢
ATM fees: Square doesn’t charge ATM fees (though third-party operators may)

Regulation

Square is a financial services platform, not a bank, and banking services are provided through partner institutions.

Square Checking is provided by Sutton Bank, Member FDIC, with coverage up to $250,000
Square Savings is provided by Square Financial Services, Inc., with coverage up to $2.5 million through a sweep program
Square Financial Services holds a state-chartered industrial bank license, regulated by the FDIC and the Utah Department of Financial Institutions

Services

Beyond its banking products, Square offers tools for day-to-day business operations, including:

Square POS system for small business: The free Square Point of Sale app is available in standard and industry-specific versions for restaurants, retail, and appointments
Hardware: Options range from the Square Reader at $59 to the Square Register at $899
Business loans: Square Loans are repaid as a percentage of daily card sales, rather than fixed monthly installments
Team management: Covers payroll processing, shift scheduling, and attendance tracking

How to open a Square business account

Opening a Square account is a two-part process: first, setting up a seller account to process payments, then adding the banking products.

Requirements for opening an account

To meet federal “Know Your Customer” (KYC) regulations and anti-money laundering laws, Square will ask you for several pieces of personal and business information, including:

Full legal name and date of birth
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
US residential address (P.O. boxes aren’t accepted for verification)
Government-issued photo ID (e.g., a driver’s license, passport) and a selfie for identity verification

On the business side, you’ll need to inform Square of the following:

Business structure (e.g., sole proprietor, LLC, corporation, or partnership)
Employer Identification Number (EIN) for registered businesses (sole proprietors can use an SSN)
Legal business name and any “doing business as” name
A valid US bank account to link for transfers, unless you plan to use Square Checking as your primary account
Ownership details for any individual holding 25% or more of the business

Steps to open your account

Once you have your documents ready, the process splits into two parts.

Set up your Square seller account

Go to the Square sign-up page and create an account.
Select your business type, enter your business name, and provide an estimate of your annual revenue.
Navigate to the “Activate your account” section on your dashboard.
Submit your personal and business details for identity verification (this usually takes a few minutes, though manual reviews may take longer).
Link your external bank account.

Open Square Checking or Square Savings

Log in to your Square Dashboard and go to the Banking tab.
Select Square Checking or Square Savings and click “Open account”.
Confirm your identity if prompted.
For checking accounts, personalize your Square Debit Card and confirm your shipping address.

Where is Square for Business supported?

Square supports card payment processing in eight countries across North America, Europe, and Asia-Pacific.

Region	Supported countries
North America	United States, Canada
Europe	United Kingdom, Republic of Ireland, France, Spain
Asia-Pacific	Australia, Japan

If your business operates across borders, check our guide on international business payments.

Is Square right for your business?

Square works well for a wide range of small businesses, but whether it’s the right fit depends on your sales volume, industry, and growth plans.

Square works well for:

Low to mid-volume businesses processing under $10,000 per month, where flat-rate pricing is often cheaper than traditional merchant account fees
Retail shops, cafes, salons, and mobile businesses (e.g., food trucks) that need a free POS app and a simple setup
Business owners with limited technical experience who need to get up and running quickly without professional help

Square may not be the best fit if:

You consistently process over $10,000 to $20,000 per month, where interchange-plus pricing from a competing provider may work out cheaper
Your business is primarily e-commerce, and you need more robust website and shipping tools
You need deep API integrations or a customized checkout experience

If you’re still comparing options, see our guide to the best business bank account for international payments.

Keep your international teams connected with Holafly for Business

If your business plans to use Square to manage payments and operations across international teams, keeping those employees connected while they travel is a separate challenge worth planning for.

A business eSIM from Holafly for Business provides employees with mobile data in 160+ destinations, with unlimited data options and 24/7 multilingual customer support. Everything is managed through the Holafly Business Center, a dashboard to handle eSIMs, invoices, and data usage.

There are four Holafly Plans for Business depending on how often your team travels:

On Demand: from €3.40/day; pay only when employees are on the move without fixed costs
Always On: €9.95/year for 1 GB of data per month; best for employees taking up to four short trips per year
Unlimited: €57/month per eSIM for unlimited data, including VPN, ad-blocker, and web protection
Enterprise: custom pricing for larger teams, with tailor-made plans, volume discounts, and priority support

Not sure which plan is best for your team? Book a demo.

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Max Woolf

Writer

I’m a writer with over eight years of experience in digital content. My work has appeared in publications such as The New York Times, Forbes, Business Insider, and the BBC. At Holafly, I write clear, practical guides to help travelers stay connected with eSIM technology. In my spare time, I enjoy car detailing, biking around Warsaw, and capturing portraits.

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