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Square/Paypal Comparison


Merchants are climbing on the “Square” bandwagon based on simplicity, without doing their due diligence and researching the facts.  They believe it is easier and cheaper.  Nothing could be further from the truth. We have done your research for you.

Square is an “aggregator” – a totally different animal in many significant aspects than a Merchant Account.

Most of the differences with square are spelled out in the Square Terms of Service Agreement that all Square users sign, but we suspect very few actually read.  We read the Square Agreement as were surprised by what we learned.  Here are the myths and facts of using an aggregator such as Square:




A digital wallet (square) is cheaper than a “traditional” merchant account


It depends on your volume, average ticket size and whether or not you are keying transactions.  Square’s rates for manually “keyed transactions” are among the highest in the industry – not to forget that a certain volume of keyed transactions will be held for 30+ days before deposited into your bank account

Square deposits my money the same way as a merchant account


Since Square is a payment “aggregator”, Square deposits your money into an account owned and controlled by Square which can lead to delays in your receiving your money.  Why should your money go into someone else’s account?

Square also has many more rules capping transaction amounts and delaying fund deposits.  Cash flow anyone?

Only Square offers free equipment


Bankcard Solutions offers free equipment and can process on most POS systems as well as smartphones.

Square Customer Service is as good as customer service on a merchant account


Square has no phone customer support – support is only offered through their website.  You must first send an email describing your problem and then wait up to 24 hours for an email response.

Bankcard Solutions offers 24/7/365 direct phone customer service, Moreover, if Bankcard Solutions can’t quickly solve your problem, we will stay involved to make sure the processor timely and completely solves any problem. Many problems can be solved with a single phone call. No emails!  No waiting!  No problems!


Square and Merchant accounts operate under the same Laws and Regulations.



Merchant accounts operate under federal and state banking laws and regulations which are designed to protect both merchants and their customers. Square is not subject to banking laws and regulations and can basically set their own rules. Merchants incur less risk with a Merchant Account. Which do you prefer?


Customer “chargebacks” are handled the same for Square and Merchant Accounts.



Banking Regulations which govern Merchant Accounts dictate what can and cannot be charged back by your customers. Square is not bound by these bank regulations and can set their own chargeback rules. Square customers can also cancel payments on credit card transactions similar to a stop payment order on a check. This certainly is not good for your business, and is entirely different from how a chargeback is handled with a Merchant Account.


Request a free comparison for your business between Square and Bankcard Solutions here:  This email address is being protected from spambots. You need JavaScript enabled to view it.