This article is part of a larger series on Business Banking.
If you’re a Square seller wanting to put payment processing and banking services in one location, opening a Square Business Checking account may be your best option. It keeps your business funds safe while charging no monthly fees and having no minimum balance requirements. With Square’s business tools and banking integrations, point-of-sale (POS) revenue becomes instantly available and ready for spending. Additional Square banking products include high-yield business savings accounts and flexible business loans.
How Square Business Checking Stacks Up With Its Competitors
*Square charges no ATM fees, but third-party operator fees may apply.
**Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Sutton Bank for Square, Green Dot Bank for QuickBooks, and Middlesex Federal Savings for Novo).
When Square Business Checking Is a Good Fit
- Your business uses Square at the POS: Any funds a Square seller receives from Square Payments goes directly to their Square business checking account—and transferred funds are ready for spending automatically. By integrating both tools, sellers no longer need to go through the hassle of transferring funds between platforms.
- You want fewer fees on banking activity: Square charges no monthly maintenance fees and overdraft fees. It also has no opening deposit nor minimum balance requirements.
- You want access to flexible loans: Square offers small business loans, with amounts ranging from $300 to $250,000. Instead of making credit checks, Square bases loan eligibility on sales.
When Square Business Checking Is Not a Good Fit
- You make ATM withdrawals frequently: Square isn’t part of any ATM network, and businesses that rely on ATM withdrawals may need to pay third-party operator fees regularly. If you’re looking for a bank that can reimburse out-of-network ATM fees, Novo would be a good choice.
- You want to earn interest on checking deposits: Balances on Square business checking don’t earn interest. Qualified checking accounts under the online-only bank Bluevine can earn interest at a rate of 2.0%.
- You make cash deposits regularly: Square users cannot deposit cash directly into their checking accounts, but Chase lets account holders deposit up to $5,000 worth of cash fee-free every statement period.
If your small business meets one or more of these scenarios, check out our guide to the best small business checking accounts for more recommendations.
Square Business Checking Overview
Required Opening Deposit
Required Balance Minimum
Transaction Limit Before Fees
Automated Clearing House (ACH) Fees
None between Square and linked account
Wire Transfer Fees
*Square charges no ATM fees, but third-party operator fees may apply.
Square Business Checking Requirements
The Square Business Checking account is only available for Square sellers. To open a business bank account with Square, applicants must complete the following process on their Square POS app or dashboard:
- Step 1: Go to the Balance Applet.
- Step 2: Select “Open Account.”
- Step 3: Verify your personal and business information.
- Step 4: Customize your business debit card.
- Step 5: Input and confirm the shipping address for your business debit card.
Square delivers business debit cards within seven to 10 days of account opening. However, applicants can use their debit cards immediately upon account opening as long as the cards are connected to digital payment channels, such as Apple Pay and Google Pay.
Square Business Checking Features
Square’s business checking features include Square product integrations, a free business debit card, and mobile check deposits.
Square Product Integrations
Because being a Square seller is a prerequisite for opening a Square Business Checking account, Square’s business tools integrate naturally with Square bank accounts. Integrating banking reduces the need to transfer funds from one platform to another. With the Square POS system, businesses can immediately access and spend their Square sales revenue.
Square Debit Card
The Square Business Checking account comes with a free business debit card called the Square Debit Card. Although it takes seven to 10 days for the physical card to arrive in the mail, businesses can use their card immediately after account opening by adding it to online payment channels like Apple Pay and Google Pay.
It can be used to withdraw money at any ATM. Though Square charges no ATM fees, third-party operator fees will likely apply. The limit for ATM withdrawals is $500 per transaction, $1,000 per day, $1,000 per week, and $2,000 per month.
Mobile Check Deposit
Square account holders can deposit checks for free by taking snapshots of their physical checks using the Square POS app. Funds from the deposit will then be available within six business days.
Other Square Business Banking Products
Square’s business savings account earns interest at a rate of 1.00%. There’s no minimum balance requirement for earning interest. Additionally, businesses can transfer funds instantly between their savings and checking accounts, fee-free. Square also has an automatic savings transfer feature, which transfers a customizable percentage of an account holder’s Square sales revenue into their savings account.
Square Business Checking account holders have access to Square loans worth $300 to $250,000, and Square doesn’t charge an ongoing interest rate. Instead, borrowers must repay a simple flat fee and repay their loans automatically. Each day, Square’s automatic repayment system takes a percentage of a business’s Square sales revenue and uses the funds for debt repayment. Through this system, businesses pay according to the strength of their revenue, paying less on slow days and more on higher-profit days.
Square Business Checking Pros & Cons
|Integrates with Square business tools||No physical branches|
|No monthly maintenance fees||No cash deposit support|
|No minimum balance requirements||Third-party operator fees apply for ATM withdrawals|
Square Business Checking is a great fit for businesses wanting to put payments processing and business banking in one platform. Integrations between Square business tools and Square banking products give users instant access to income from payment processing. Square accounts are also affordable to maintain given the lack of monthly fees and balance requirements.
However, cash-intensive businesses may have to look elsewhere. Square Business Checking has no physical bank branches and doesn’t allow cash deposits. Because Square isn’t part of an ATM network, account holders may have to pay third-party operator fees whenever they withdraw cash from ATMs.
Alternatives To Square Business Checking
Square Business Checking streamlines financial management for existing users of Square’s business solutions. However, for businesses not using the Square POS system, Square Business Checking may not be the best choice. Here are three alternative options to consider:
- Chase is ideal for cash-intensive branches as it has more than 16,000 ATMs and a monthly cash deposit limit of $5,000. Square Business Checking doesn’t have an ATM network or support for cash deposits.
- Bluevine is the best checking account for earning interest since accounts that meet its qualifications can earn interest at an industry-leading rate of 2.0%. Square Business Checking accounts aren’t interest-drawing.
- Nearside is a great checking account for earning cash back on debit card transactions. Its debit card earns 2.2% cash back for every purchase, whereas Square’s doesn’t earn points and cash back rewards for transactions.
The software Square helps small businesses streamline payments, point of sale, and business management. If your business wants to put banking services and Square’s business tools under one platform, opening a Square Business Checking account is a great option. Not only do Square’s banking integrations make Square sales revenue immediately available, but they also give you access to high-yield business savings and flexible business loans.