Square built its business by removing friction from accepting credit cards. For millions of small businesses starting out, it was the right tool. But Square's simplicity comes at a price that compounds as your business grows.
What Square Does Well
- Instant setup with no approval process
- Free basic plan with no monthly fees
- Integrated POS software and hardware ecosystem
- Good for very small or occasional sellers
Signs You've Outgrown Square
Processing More Than $5,000/Month
At $5,000/month, Square costs approximately $137/month. Interchange-plus at 2.0% effective rate costs approximately $100. At $20,000/month, Square costs $530/month versus approximately $400 with interchange-plus — a $1,560/year difference.
Significant Debit Card Volume
Square charges 2.6% + $0.10 on every transaction including debit. Regulated debit interchange is capped at 0.05% + $0.21. If a third of your transactions are debit, you are substantially overpaying on those transactions.
Account Stability Issues
Square's automated risk systems occasionally freeze funds without warning. A dedicated merchant account has underwritten your specific business and is far less prone to automated holds.
You Want a Cash Discount Program
Square does not support cash discount programs. A dedicated merchant account with a processor that supports these programs is required.
What You Gain From a Dedicated Merchant Account
- Interchange-plus pricing — you see exactly what you pay for each card type
- Lower effective rate on most card mixes
- Stable account underwritten for your business type and volume
- Dedicated support representative who knows your business
- Cash discount and dual pricing programs available
- Free terminal for qualifying merchants
Find out exactly how much you'd save by switching from Square. Upload your Square statement and get a detailed comparison — no commitment required.
Compare My Square CostsFrequently Asked Questions
At what volume should I stop using Square?
Most businesses find that at $5,000–$10,000/month in processing volume, interchange-plus pricing becomes meaningfully cheaper than Square's flat rate. The higher your volume and debit card usage, the larger the savings.
Will I lose my Square POS features if I switch processors?
You may need a different POS solution if you switch your payment processing. Many businesses use Square's POS software while processing through a different provider, or transition to a compatible POS system.