Point of Sale, Online Store, Online Checkout, Square Appointments, Square for Retail, Square for Restaurants, Square Kitchen Display System, Dashboard, Business Loans, Team Management, Shifts, Square Marketing, Loyalty, Customer Directory, Inventory Management, Gift Cards, Integrations, Photo Studio
Square is a financial services platform by Block, Inc. for small and medium-sized businesses.[1][2] It enables accepting credit card payments using smartphones as POS registers, and facilitates various business operations. As of 2023, Square reports 4 million merchant clients and an annual payment value of US$210 billion.[3][4]
Square includes features to manage operations such as e-Commerce,[5] customer bookings,[6] inventory,[7] payroll, shifts,[8] banking, loan financing etc.[9] It services the markets in the United States, Canada, Australia, New Zealand, Japan, the United Kingdom, Republic of Ireland, France and Spain as of 2023.[10]
History
The inspiration for Square occurred to Jack Dorsey in 2009, when his friend Jim McKelvey was unable to complete a $2,000 sale of his glass faucets and fittings because he could not accept credit cards.[11][12]
At the TechCrunch Disrupt conference in May 2011, Square announced the release of two apps, Square Card Case (later rebranded Square Wallet)[13] and Square Register. Square Wallet, before it was removed from the Apple App Store and Google Play Store in 2014, allowed customers to set up a tab and pay for their order by providing their name (or a barcode) using a stored credit, debit, or gift card.
In April 2012, rival payment company Verifone claimed that the Square system was insecure and that a reasonably skilled programmer could write a replacement app that could use the Square device to skim a credit card and return its details, because of the lack of encryption. VeriFone posted a demonstration video and sample skimming app to its web site.[14] Dorsey called VeriFone's claims "neither fair nor accurate", noting that all card data can be compromised by visually examining the card and that even if an attack succeeded, card issuers offered fraud protection.[15] Square later introduced strong encryption on its devices.[16]
In August 2012, Starbucks announced it would use Square to process transactions with customers who pay via debit or credit card.[17] In December 2012, Square introduced virtual gift cards.[18] Physical gift cards were added in 2014.[19]
In May 2013, the firm announced that its mobile payments service was available in Japan after agreeing to a partnership with Sumitomo Mitsui Card Corporation. In May 2013, Square announced it would no longer support firearms-related transactions.[20]
In June 2013, the firm launched Square Market, which allows sellers to create a free online storefront with online payment processing functionality.[21] Square Stand was introduced the same month.[22]
In February 2014, Whole Foods Market announced it would use Square Register at select stores' sandwich counters, pizzerias and coffee, juice, wine and beer bars.[23] In March 2014, the firm announced it would allow sellers to accept bitcoin on their own storefronts through Square Market. The seller takes no risk of bitcoin value fluctuations.[24]
In July 2014 the firm announced a card reader that would accept chip cards and contactless cards.[25] In June 2015, Apple announced Square would release a Reader capable of accepting Apple Pay and other contactless payments.[26]
In 2014, Square launched Square Capital[9] and an online booking tool.[27]
In 2015, Square launched a reader for Android and iOS that accepts contactless and chip card payments.[28] That year, the firm launched Square Payroll for small business owners to process payroll.[29]
In October 2017, Square Register, was announced for small to medium-sized businesses.[30] Square launched in the UK in 2017.[31]
In August 2018, Square released a version of its magstripe reader with a Lightning connector, allowing it to be used on iPhones without a headphone jack.[32] In October 2018, the company introduced its Terminal product.[33] That Square began allowing merchants to develop custom interfaces for the platform, via an application programming interface.[34]
Square Financial Services launched in 2021, based in Salt Lake City, after receiving FDIC and Utah Department of Financial Institutions approval.[35]
In February 2023, Block reported that Square served 4 million merchant clients over January-December 2022.[3]
On September 7-8, 2023, Square and Cash App experienced a 14-hour long outage that left businesses unable to process customers' payments. Square recommended vendors switch to an offline mode to mitigate the issue, where the payments get processed once the network connectivity is re-established but were met with mixed results. Several days later, Square determined that the disruption was caused due to a misconfiguration in the DNS.[36][37]
According to Payments Dive in September 2023, Square reported service availability in the United States, Canada, Australia, New Zealand, Japan, the United Kingdom, Republic of Ireland, France and Spain.[10]
In February 2024, Block reported that Square processed payments worth US$209.6 billion for the year 2023.[4]
Devices
Square Reader for magstripe
In 2010, the Square device was able to communicate with the Square app through the phone's audio jack.
The Square Reader was the firm's first product. It accepts credit card payments by connecting to a mobile device's audio jack. The original version consisted of a read head directly wired to a 3.5mm audio jack, through which unencrypted, analog card information was fed to smartphones for amplification and digitization.[38] Square Reader also supports Apple Lightning on post-2018 products.
Square provides its magnetic stripe card readers to sellers without charge.[39] Square charges $99 for Square Stand and $59 for its chip-based Square Reader.[40] The Square app is freely downloadable from the AppleApp Store and the Google Play Store.
Square charges a fee of 2.6% plus $0.10 on every electronically scanned credit card transaction[41] or 3.50% plus $0.15 per manually-entered transaction. No monthly or set-up fees are charged. The firm claims that its costs are, on average, lower than the costs charged by conventional credit card processors.[42] Swiped payments are deposited directly into a seller's bank account within 1-2 business days. In some instances, Square withholds payments pending issues related to chargebacks.[43]
Square no longer returns fees for refunds or cancelled transitions (as of 4-2023)
Square Reader for contactless and chip
Square Reader's bluetooth-connected reader allows Android and iOS devices to accept contactless and chip card payments.[28]
Square Terminal
Square Terminal features a display, prints receipts, and accepts chip, swipe, and contactless payments.[33] Unlike the basic card reader, it does not require a phone or tablet. It is more affordable than Square Register. It was designed to replace the older credit card terminals encountered in many stores. Square argued that these terminals often come with onerous contracts, and are not a positive experience for consumers. Terminal works with WiFi and is powered by an all-day battery, so it can be carried around the store and handed to customers.[44]
Square Stand
Square Stand at a coffee shop turned around for the customer to choose a tipping option
Square Register is a standalone point-of-sale system.[30] It consists of a merchant tablet and a customer tablet, with a built-in swipe, chip, and contactless reader.[45]
Services
The Square product catalog includes subscription-based offerings such as Customer Engagement, Square Payroll, and Square Register. It also offers to facilitate customer bookings,[6]e-Commerce,[5] inventory,[7] payroll, shift schedules,[8] banking, and borrowing business loans.[9]
Square Payroll charges sellers a monthly fee of $20 plus $5 for each employee paid.[46]
Square offers virtual and physical gift cards. A QR code is scanned to use the funds.[18][19]
Square Capital offers financing to merchants using Square.[9]
An online booking tool allows small businesses to accept appointments on their website,[27] but does not accept restaurant reservations.[48]
Square Payroll allows small business owners to process payroll. The product is available in all 50 states + DC. It automatically handles withholding, payments, and tax filings.[29]
Square Financial Services offers other financial services.[35]
Square offers a Tap to Pay service on Android and iOS devices, allowing merchants to accept contactless payments without needing to purchase an external reader.[49][50]
Firearms
Square does not support firearms-related transactions. The company denied that this move was related to the debate over gun control.[20]
Controversies
In June 2019, The Wall Street Journal reported that Square inadvertently sent transaction receipts to the wrong email address, leading to adverse consequences such as outing one woman's impending divorce.[51]
A Canadian food truck which sold Cuban coffee faced a loss of C$14,000 because transactions were processed through a Canadian subsidiary of Chase Manhattan Bank, contracted by Square to handle its Canadian accounts. As the parent company is governed by US laws, the bank would have been subject with charges of trafficking in prohibited Cuban goods if it had processed the fund transactions.[52]
Square marks certain merchants as high risk, a designation that can come suddenly and without warning. Merchants classified as risky can have 20-30% of their funds withheld to handle chargebacks and disputes. Square received criticism from affected merchants due to the opaque nature of the process, its suddenness, and difficulties in appealing the designation.[53][54]
A debit card, also known as a check card or bank card, is a payment card that can be used in place of cash to make purchases. The card usually consists of the bank's name, a card number, the cardholder's name, and an expiration date, on either the front or the back. Many new cards now have a chip on them, which allows people to use their card by touch (contactless), or by inserting the card and keying in a PIN as with swiping the magnetic stripe. Debit cards are similar to a credit card, but the money for the purchase must be in the cardholder's bank account at the time of the purchase and is immediately transferred directly from that account to the merchant's account to pay for the purchase.
Electronic funds transfer at point of sale is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit cards or credit cards, at payment terminals located at points of sale. EFTPOS technology was developed during the 1980s.
Mastercard Inc. is an American multinational payment card services corporation headquartered in Purchase, New York. It offers a range of payment transaction processing and other related-payment services. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard-brand debit, credit and prepaid cards to make purchases. Mastercard has been publicly traded since 2006.
EMV is a payment method based on a technical standard for smart payment cards and for payment terminals and automated teller machines which can accept them. EMV stands for "Europay, Mastercard, and Visa", the three companies that created the standard.
Verifone, Inc. is an American multinational corporation headquartered in Coral Springs, Florida. Verifone provides technology for electronic payment transactions and value-added services at the point-of-sale. Verifone sells merchant-operated, consumer-facing and self-service payment systems to the financial, retail, hospitality, petroleum, government and healthcare industries. The company's products consist of POS electronic payment devices that run its own operating systems, security and encryption software, and certified payment software, and that are designed for both consumer-facing and unattended environments.
Network for Electronic Transfers, colloquially known as NETS, is a Singaporean electronic payment service provider. Founded in 1986 by a consortium of local banks, it aims to establish the debit network and drive the adoption of electronic payments in Singapore. It is owned by DBS Bank, OCBC Bank and United Overseas Bank (UOB).
Moneris is a Canadian financial technology company that specializes in payment processing.
Contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or near-field communication (NFC) for making secure payments. The embedded integrated circuit chip and antenna enable consumers to wave their card, fob, or handheld device over a reader at the Point-of-sale terminal. Contactless payments are made in close physical proximity, unlike other types of mobile payments which use broad-area cellular or Wi-Fi networks and do not involve close physical proximity.
A payment terminal, also known as a point of sale (POS) terminal, credit card machine, card reader, PIN pad, EFTPOS terminal, is a device which interfaces with payment cards to make electronic funds transfers. The terminal typically consists of a secure keypad for entering PIN, a screen, a means of capturing information from payments cards and a network connection to access the payment network for authorization.
Block, Inc. is a U.S. listed company founded by Jack Dorsey and Jim McKelvey in 2009. It is a financial technology conglomerate. The company reportedly serves 56 million users and 4 million businesses, and processes payments worth US$228 billion annually as of 2023.
Chase Paymentech is a payment processing and merchant acquiring business of JPMorgan Chase. Paymentech payment platforms supports businesses to process payments. Paymentech authorises payment transactions in more than 130 currencies. In addition to this, the company provides business analytics, payment fraud detection, and data security solutions.
RuPay is an Indian multinational financial services and payment service system, conceived and launched by the National Payments Corporation of India (NPCI) in 2012. It was created to fulfil the Reserve Bank of India's (RBI) vision of establishing a domestic, open and multilateral system of payments. RuPay facilitates electronic payment at all Indian banks and financial institutions. NPCI maintains ties with Discover Financial and JCB to enable the RuPay Card scheme to gain international acceptance.
Merchant Customer Exchange (MCX) was a company created by a consortium of U.S. retail companies to develop a merchant-owned mobile payment system, which was to be called "CurrentC." The joint venture was announced on August 15, 2012.
Apple Wallet is a digital wallet developed by Apple Inc. and included with iOS and watchOS that allows users to store Wallet passes such as coupons, boarding passes, student ID cards, government ID cards, business credentials, resort passes, car keys, home keys, event tickets, public transportation passes, store cards, and – starting with iOS 8.1 – credit cards, and debit cards for use via Apple Pay.
Payanywhere is a payments platform and app that allows merchants in the United States to accept credit and debit card payments while building customer relationships in-store, online, or on the go. Merchants may accept payments on their smartphone via a Bluetooth card reader or on an in-store “Storefront” solution featuring a tablet and stand, which was introduced on April 8, 2014. PayAnywhere offers credit card readers and apps that are compatible with both Apple and Android devices.
Zettle by PayPal is a Swedish financial technology company founded by Jacob de Geer and Magnus Nilsson in April 2010. Launching its first app and service in 2011, the company offers a range of financial products including payments, point of sales, funding and partners applications. The company was acquired by PayPal in 2018.
Apple Pay is a mobile payment service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web. It is supported on iPhone, Apple Watch, iPad, Mac, and Vision Pro. It digitizes and can replace a credit or debit card chip and PIN transaction at a contactless-capable point-of-sale terminal. It does not require Apple Pay–specific contactless payment terminals; it can work with any merchant that accepts contactless payments. It adds two-factor authentication via Touch ID, Face ID, Optic ID, PIN, or passcode. Devices wirelessly communicate with point of sale systems using near field communication (NFC), with an embedded secure element (eSE) to securely store payment data and perform cryptographic functions, and Apple's Touch ID and Face ID for biometric authentication.
SumUp is a global financial technology company headquartered in London, United Kingdom. SumUp supports more than 3.5 million merchants in over 30 markets worldwide, and operates business tools created specifically for the micro and nano segment.
Google Pay is a mobile payment service developed by Google to power in-app, online, and in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or watches. Users can authenticate via a PIN, passcode, or biometrics such as 3D face scanning or fingerprint recognition.
Curve is a payment card that aggregates multiple payment cards through its accompanying mobile app, allowing a user to make payments and withdrawals from a single card. It lets you "switch the bank card you paid with after each transaction is complete." Curve named this feature "Back in time".
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
