When you’re opening a business checking account, choosing the right features and fee structures is key. Square, a popular financial payment processor, now offers Square Checking accounts. While Square, Inc. is a financial services company, their checking accounts are provided by Sutton Bank, Member FDIC.

Square Checking offers several compelling benefits, including mostly fee-free accounts and seamless integration with Square point-of-sale (POS) systems. This makes it effortless for business owners to receive, transfer, and manage payments. Could Square Checking be the ideal solution for your organization? Find out by reading our in-depth review.

Square Checking Account Features

These Square Checking features make it stand out as a business banking partner:

Easy-to-Use Interface and POS

You must be a Square POS user to open a Square checking account. Because of this, you’ll already be familiar with Square’s intuitive, easy-to-use interface. By adding Square Checking, you can fund your sales instantly, and spend the money right away via your Square Debit Card. There’s no waiting for transfers or processing times.

Digital and Physical Debit Cards  

Square offers both digital and physical debit cards for all account holders. Add your Square Debit Card to Apple Pay or Google Pay to make purchases online, in apps, or in-store instantly. You can also get a Square Debit Card for everyday transactions. Owners can distribute up to five debit cards to their team, which allows them to make purchases from the business account. This helps streamline your spending and maintain control over your business’s finances.

No Hidden Fees  

Square Checking offers a business-friendly account with minimal fees. There are no monthly maintenance charges, minimum balance requirements, overdraft penalties or foreign transaction fees. The only costs you’ll encounter are for specific transfer services and when processing payments through the Square POS system. This streamlined fee structure also allows you to manage your business finances more efficiently, keeping more money in your pocket.

Security Features  

Square offers two-step verification to protect your account from unauthorized access with verification texts upon login. Debit card holders can easily lock and unlock their cards through the mobile app.

FDIC Insurance  

A Square Checking account is FDIC-insured up to $250,000, ensuring your funds are protected.

Convenient Transfers  

Square makes it easy to transfer money between accounts. You can automatically transfer funds daily to an external bank account for free, available the next business day. For a small fee, instantly transfer funds to your external bank account or set up a customizable schedule for transfers to external accounts.

Additional Features  

Square Checking also allows users to issue and manage printable checks, directly from your Square Checking balance. It’s also easy to organize and streamline outgoing payments. The app and website offer options to upload bills, take photos or forward via email.

Requirements to Open a Square Checking Account

You can set up a Square Checking account in just a couple of minutes. To get started, sign up as a Square seller. Once that’s done, opening your checking account is straightforward. Simply head to the Balance applet in your Square Point of Sale app or Dashboard. Next, click on Square Checking. From there, select “Open account” and follow the prompts to verify your information. 

You’ll also get to personalize your business debit card and confirm the shipping address for it. While you wait for your physical card to arrive, Square suggests adding your debit card to Apple Pay® or Google Pay™. This allows you to start using your funds immediately. 

Fees and Pricing

Square Checking does not charge monthly maintenance fees, minimum balance requirements, overdraft fees or foreign transaction fees. However, certain transfers and payment processing through the Square POS system incur fees. 

Here’s a list of all the fees associated with a Square checking account:

  • Instant Transfer Fee: Square charges 1.75% per transaction for instant transfers to a linked account. To access an instant transfer, you must have a minimum balance of $25 after Square’s fees, and a maximum transfer size of $10,000.
  • Same-Day Transfer Fee: Square charges 1.75% per transaction for same-day transfers. Same-day transfers require a minimum balance of $1 after Square’s fees. There is a maximum individual transaction size limit of $10,000. When your account balance exceeds $10,000, but does not include individual transactions greater than $10,000, you’ll receive multiple transfers.
  • Manual Transfer Fee: There is no fee for standard manual transfers (next business day).
  • ATM Withdrawal Fee: Withdrawals are subject to ATM operator fees (Square itself does not charge for ATM withdrawals).
  • Instant Deposit to Other Accounts: Square charges a 1.5% fee for instant deposits from Square checking to other accounts.
  • Payment Processing Fees (Square POS): These fees vary, depending on the payment method used in the Square POS system. Square charges 2.65% for swiped, contactless and prepaid Gift Card payments. They charge 2.9% plus 30¢ per paid Square Invoice, and 3.4% plus 15¢ for manually entered payments. Online sales come with a 2.9% plus 30¢ fee. Interac debit cards are processed at 0.75% plus 7¢ per tap and have no other associated fees. It’s also important to note that processing fees are deducted before each transfer, and cannot be charged on a monthly basis.

Finally, note that new sellers may initially be limited to one instant transfer of up to $2,000 or one same-day transfer of up to $10,000 per day. As your business grows with Square, your daily transfer limits may increase.

Pros of Square Checking Accounts

  • Instant access to funds: Funds from Square sales are available instantly. This allows for immediate reinvestment or spending without waiting for transfers or processing delays.
  • No monthly fees: Square Checking has no monthly service fees, unlike many traditional banks.
  • No overdraft fees: Businesses can avoid unexpected costs that can arise from traditional banks’ overdraft policies.
  • No minimum balance requirements: There’s no need to maintain a minimum balance, making it easier for businesses to manage their cash flow without worrying about penalties.
  • Fee-free ATM withdrawals: Square does not charge for ATM withdrawals, though standard ATM operator fees may apply. This can be more cost-effective compared to traditional banks, which often charge $3–$5 per withdrawal.
  • Fee-free foreign transactions: There are no foreign transaction fees, which is beneficial for businesses dealing with international clients or suppliers.
  • Easy card management: The ability to issue up to five additional debit cards for team members provides convenience and control over your business spending.
  • Enhanced security features: Enhanced security measures help protect against unauthorized access and provide a way to lock and unlock the card if needed.
  • Integrated with Square ecosystem: The checking account integrates smoothly with Square’s payment processing system, which can simplify your financial management and reporting.
  • Customizable transfer options: Businesses can choose between standard, instant or same-day transfers to manage their cash flow according to their needs.
  • Printable checks and bill pay: The ability to issue printable checks and manage bill payments directly from the account is a great feature for small businesses.

These benefits make Square Checking a compelling choice for businesses looking for a cost-effective, efficient banking solution that integrates well with their payment processing needs.

Cons of Square Checking Accounts

  • Limited overdraft protection: The account does not support over-drafting, so any transactions that exceed the available balance will be declined. This can be a limitation for businesses that need more flexibility in managing their cash flow.
  • Potential ATM operator fees: While Square does not charge for ATM withdrawals, users may still incur fees from the ATM operators. These fees can add up if frequent cash withdrawals are necessary.
  • No physical branches: Square Checking does not offer physical branches. This can be a drawback for businesses that prefer face-to-face interactions for banking services or need in-person support.
  • Dependence on digital infrastructure: Reliance on Square’s digital infrastructure means that any technical problems or outages could impact access to funds or account management.
  • Limited integration with non-Square services: While Square Checking integrates well with Square’s payment processing, businesses using other financial tools or services might face challenges in syncing or managing accounts across different platforms.
  • No physical checks for payments: Although businesses can issue printable checks, traditional physical checks are not possible. This might be a limitation if you prefer or require this method of payment.
  • No interest on deposits: Square Checking accounts do not offer interest on deposits, so businesses won’t benefit from any earnings on their account balance.
  • Fees for instant transfers: While standard transfers are free, instant transfers to external accounts come with a fee of 1.75% of the transfer amount. This can quickly add up for businesses making frequent transfers.
  • Limited Customer Service Options. As a digital-only service, customer support is limited to online or phone assistance. 

North One: A Digital-First Alternative

North One is a digital banking platform that launched in 2019. Designed for small businesses, freelancers and startups, it offers a fresh alternative to traditional banking services. By focusing on a user-friendly, mobile-first approach, North One helps business owners manage their finances efficiently from anywhere in the world.

It’s easy to open a checking account with North One, and you can do it entirely online. Free account holders enjoy access to most standard banking services without incurring additional charges for transactions, ATM use, overdrafts or non-sufficient funds (NSF). For those seeking enhanced features, “Plus” accounts are available for a flat monthly fee.

North One’s Envelope system allows businesses to create multiple sub-accounts within their main account. This feature is particularly useful for budgeting and financial planning, as it enables users to allocate funds for specific purposes such as tax payments or savings goals. Each North One account also comes with a MasterCard debit card to provide immediate access to funds.

For businesses that deal with cash, North One offers free cash deposits at any GreenDot location, including many retail stores. While the platform supports domestic wire transfers for a fee of $15 per transfer, it’s worth noting that international wire transfers are not currently available. Finally, to further streamline your financial management, North One integrates seamlessly with popular accounting software and payment platforms. These features make North One a comprehensive solution for modern businesses.

Find the Right Banking Fit for Your Business

When it comes to business banking, there’s no one-size-fits-all answer. Square Checking’s largely fee-free structure and low minimum balances make it a great choice for small businesses who already use their POS services—but the limited external integrations, lack of physical checks and fees for instant transfers can be a serious drawback. 

Whether you choose Square Checking or North One, it’s important to compare each account’s features, pros and cons to ensure you find the right fit.