Are you a small business owner in need of a reliable banking solution? Look no further than the Square Business Checking Account.
Whether you’re a freelancer, a startup, or an established business, having a dedicated business checking account minimizes your liability by separating your business finances from your personal finances.
In this comprehensive review, we will explore the Square Business Checking Account’s key features, benefits, and drawbacks of this banking service, so you can decide if it fits your needs.
What is a Square Business Checking Account?
The Square Business Checking Account is a business bank account offered by Square, a popular payment processing platform and point-of-sale (POS) system that businesses of all sizes use.
It is designed for small businesses, freelancers, and entrepreneurs needing a simple, streamlined banking solution.
As such, it’s reserved for sole proprietorships; business owners classified as a limited liability corporation or other type of business will need to pursue different business banking options.
Benefits of a Square Business Banking
Opening a Square Business Checking Account offers several advantages for small businesses:
- Easy account setup: Square makes creating a business checking account easy without requiring lengthy paperwork or complex requirements. The quick and user-friendly process allows businesses to get up and running with their finances swiftly.
- Integrates with Square payment processing: If you already use the Square card reader as your POS system, having a Square Business Checking Account integrates with your existing payment system. The Square POS and bank account enable you to manage your finances and sales in one convenient platform.
- No monthly fees: One of the standout features of a Square Business Checking Account is that it does not charge any monthly fees, which can be especially beneficial for small businesses with limited budgets, as it helps reduce operational costs.
- FDIC-insured deposits: Square partners with Sutton Bank, a member FDIC-insured financial institution, to protect your Square Business Checking Account funds. As such, your money is protected up to $250,000 per depositor, providing peace of mind and ensuring the safety of your funds.
- Seamless money management: With a Square Business Checking Account, you can easily track your transactions, manage expenses, and review your account balance in real time. Square’s intuitive online interface and mobile app make it simple to stay on top of your business finances, no matter where you are.
Square Business Checking Account Features
The Square checking account comes packed with a range of features and benefits that can streamline your financial management and enhance your business operations. In this section, we’ll explore the key advantages of this account.
No Monthly Fees
One of the standout benefits of the Square Business Checking Account is the absence of monthly fees. Unlike traditional banks that often burden small businesses with hefty account maintenance fees, Square provides a cost-effective solution. By eliminating monthly fees, Square empowers you to allocate more of your hard-earned revenue towards growing your business.
Mobile Check Deposit
If you ever receive a paper check for your business’ services, you can deposit it seamlessly online or through the mobile app.
Instant Access to Funds
With a Square Business Checking Account, you instantly access your funds. You no longer have to endure the frustration of waiting for deposits to clear. The funds will be available immediately if you receive payments through Square or other methods. With instant transfer, you can enhance your cash flow management and seize opportunities whenever they arise.
Seamless Integration with Square Payments
Another notable feature of the Square Business Checking Account is its seamless integration with Square Payments. As a business owner, this integration provides a unified platform to manage your payments and finances easily. By combining payment processing and banking services, Square simplifies your operations, eliminating the need for multiple platforms––saving you time and effort.
Free Business Debit Card
Square Business Checking Account offers a free business debit card, making accessing and managing your funds even more convenient. This debit card lets you make purchases, withdraw cash, or pay bills directly from your business account.
The added convenience of the Square Debit Card allows you to streamline your financial transactions and maintain better control over your business funds.
Tools for Managing Finances
In addition to the other benefits, the Square Business Checking Account provides a suite of financial services through its Square Dashboard. These tools include real-time reporting, expense categorization, and budgeting features. These tools allow you to gain valuable insights into your financial performance, track your expenses effortlessly, and maintain a clear overview of your business finances.
You can even use an integrated Square savings account to separate your funds into savings buckets where it can incur ongoing interest thanks to Square’s high APY.
Overall, the Square Business Checking Account offers small businesses a range of features and benefits that can help simplify financial management. With no monthly fees, instant access to funds, seamless integration with Square Payments, a free business debit card, and robust financial tools, Square provides a comprehensive solution to your business banking needs.
Square Loans
Square Business Checking Account holders are eligible for small business loans from as little as $300 to as much as $250,000. Unlike other types of financing, the loans don’t accrue interest; you’ll just pay a flat fee.
When you use a Square card reader, a portion of your daily sales automatically go to loan repayment, which can reduce the mental energy you have to expend managing your business finances.
Existing customers can qualify for a loan automatically without a long approval process or credit check.
Square Business Checking Account Pricing and Fees
When considering a business checking account, it’s essential to understand the fees involved. This section will delve into the various costs of the Square Business Checking Account, including transaction, ATM, and overdraft fees.
No Minimum Balance Requirements
When you open a Square Business Bank Account, you don’t have to make an opening deposit or maintain a minimum balance, which provides a lot of flexibility if you’re still getting your business up and running.
Some industries have a revolving cash flow where stringent account minimums can be a real inconvenience. Square understands the needs of small business owners and gives them the autonomy to manage their account balances as they see fit.
Transaction Fees
The transaction fees are one aspect to consider when opening a Square Business Checking Account. Square offers a transparent fee structure, making it easy to understand how much you’ll be charged for each transaction.
Your Square POS system may have a different fee structure, but your business banking account has no domestic or foreign transaction fees.
ATM Fees
Accessing your funds is crucial for any business, and Square understands this. With the Square Business Checking Account, you have the convenience of free ATM withdrawals.
Square will reimburse any fees charged by ATM operators within the United States up to a limit of $250 per month. This perk ensures easy access to your funds without worrying about excessive fees associated with ATM withdrawals.
Overdraft Fees
Another consideration when managing your finances is the possibility of overdrawing your account. While it’s always best to maintain a positive balance, unforeseen circumstances can sometimes lead to overdrafts.
With the Square Business Checking Account, you don’t have to worry about overdraft fees. Square doesn’t charge any additional fees if your account balance goes into the negative. However, it’s essential to note that you’ll still be responsible for covering the overdraft amount.
The Square Business Checking Account offers a transparent fee structure to simplify financial management. With competitive transaction fees, free ATM withdrawals, and no overdraft fees, Square ensures you can focus on running your business without unexpected charges weighing you down.
Getting Started
A dedicated business checking account is crucial to staying on top of your business finances. Opening a Square Business Checking Account is a straightforward process. You can complete all the necessary paperwork online.
In this section, we will guide you through the eligibility requirements, required documents, application process, and approval timeframe.
Eligibility Requirements
Before you begin the application process, it’s important to ensure that you meet Square’s eligibility requirements for opening a business checking account.
To be eligible, you should:
- Be at least 18 years old
- Have a valid Social Security or Individual Taxpayer Identification Number (ITIN)
- Have a U.S.-based business with a physical address
Required Documents
To open a Square Business Checking Account, you’ll need to gather the necessary documents to complete the application process smoothly.
Here are the documents you will typically need:
Business Information:
- Name and address of your business
- Business tax identification number (EIN or ITIN)
- Legal business structure information (sole proprietorship, partnership, LLC, corporation, etc.)
- Description of the products or services your business offers
Personal Information:
- Your full legal name, date of birth, and contact information
- Social Security Number or ITIN.
- Personal identification, such as a driver’s license or passport
Financial Information:
- Bank account and routing number for funding your Square Business Checking Account
- Information about any existing loans or lines of credit you may have
Application Process
Once you have gathered all the required documents, you can apply to open your Square Business Checking Account.
Here’s a step-by-step guide:
- Visit the Square website and navigate to the Business Checking Account page.
- Click on the “Open an Account” button to start your application.
- Provide the requested information about your business, personal details, and financial information.
- Review the terms and conditions associated with the Square Business Checking Account.
- Submit your application.
Approval Timeframe
After submitting your application, Square will review the information provided and evaluate your eligibility. The approval timeframe can vary depending on several factors, including the completeness and accuracy of your application. While Square aims to provide a quick and seamless experience, the approval process typically takes a few business days.
Square may request additional information or documentation to verify the details provided during the review process. Once your application is approved, you will receive confirmation via email, and you can start using your Square Business Checking Account to manage your business finances efficiently.
Opening a Square Business Checking Account is a simple and convenient way to streamline your business operations. By carefully following the eligibility requirements, gathering the required documents, completing the application process accurately, and patiently awaiting approval, you’ll be on your way to enjoying the benefits of this useful financial tool.
Customer Service
When choosing a business checking account, it’s essential to consider the experiences and opinions of other customers. In this section, we will explore positive reviews, negative reviews, and overall customer satisfaction with Square’s business checking account.
Positive Reviews
Square maintains a positive reputation across many review sites. On TrustPilot, it holds an impressive 4.2 out of 5 stars, and the Better Business Bureau (BBB) gave it an A+ rating.
Many business owners have praised the Square Business Checking Account’s convenience and user-friendly features. One of the standout benefits frequently mentioned is the seamless integration with Square’s payment processing services.
Customers appreciate the ability to manage their finances and transactions all in one place, simplifying their day-to-day operations. The intuitive user interface and comprehensive reporting tools are also highly regarded, allowing business owners to stay on top of their finances effortlessly.
Furthermore, customers have expressed their satisfaction with Square’s transparent fee structure. The lack of monthly maintenance fees, overdraft fees, and minimum balance requirements is a significant advantage for small businesses. The ability to send and receive free digital invoices is also highly valued by Square’s customers, as it helps streamline their billing processes and save time.
Negative Reviews
While many positive reviews exist, a few customers have voiced concerns about Square’s Business Checking Account. One recurring complaint is the lack of physical branches and face-to-face customer support.
Despite its high BBB rating, Square’s broader customer reviews score it at only 1.05 out of 5 stars.
Some business owners prefer the convenience of visiting a physical location and speaking to a representative directly. However, Square offers customer support through other channels, such as phone and email, which may be sufficient for many businesses.
Another aspect that has received mixed feedback is Square’s holds policy. Some customers have mentioned occasional delays in accessing their funds due to account holds, which can be frustrating for businesses with immediate cash flow needs. However, Square has been actively working to improve this aspect and has implemented measures to expedite the release of funds.
Despite a few concerns raised by some customers, the overall satisfaction with the Square Business Checking Account remains high. Most business owners appreciate the convenience, simplicity, and cost-effectiveness of Square’s business banking solution. The ability to track sales, manage cash flow, and integrate with other Square services has helped many small businesses streamline their financial operations efficiently.
Bottom Line
The Square Business Checking Account is a reliable and user-friendly option for small businesses. It offers a range of features and benefits that make managing finances easier and more efficient.
The account offers unlimited transactions and fast deposits without monthly maintenance fees or minimum balance requirements. It is a cost-effective solution for businesses looking to streamline their banking needs.
Integrating Square’s payment processing tools and other business services adds further convenience. The Square Business Checking Account is a solid choice for entrepreneurs seeking a straightforward, hassle-free banking experience.
Consider Square as you navigate your business’ ongoing need for financial services from its inception into its growth stage.
