In this article, we’ll dive deep into the Square vs QuickBooks – Which is Best for Payment Processing? debate. We’ll compare them across critical factors such as payment methods, fees, hardware options, and e-commerce integrations to help you determine which one aligns best with your business needs.
Why Payment Processing Matters for Small Businesses
Efficient payment processing ensures seamless transactions, whether online, in-store, or on the go. The ideal solution should:
- Accept a variety of payment methods (credit cards, mobile payments, and ACH transfers).
- Offer affordable transaction fees.
- Integrate with accounting tools for easier financial management.
- Provide quick access to funds to maintain cash flow.
Choosing between Square and QuickBooks Payments depends on your specific business type, whether you prioritize in-person sales or online transactions, and your budget.
Key Differences Between Square and QuickBooks Payments
Let’s examine how Square and QuickBooks Payments compare across six critical categories:
1. Payment Methods Supported
Both Square and QuickBooks Payments support a range of payment methods, including:
- Credit and debit cards (swiped, keyed, or contactless).
- Mobile payments like Apple Pay and Google Pay.
- Invoicing and recurring payments.
What sets them apart?
- Square also supports cash payments, making it a versatile option for brick-and-mortar retailers.
- QuickBooks Payments, however, is optimized for digital invoicing and ACH bank transfers.
Takeaway
If you manage a storefront and need to handle cash transactions, Square is the better choice. For invoice-heavy businesses, QuickBooks Payments excels.
2. POS Equipment Options
Both providers offer POS hardware, but their pricing and capabilities differ.
| POS Equipment | Square | QuickBooks Payments |
|---|---|---|
| Free Reader | Magstripe Reader | Chip + Magstripe Reader |
| Advanced Hardware Options | Terminal: $299, Register: $799 | Chip + Contactless Reader: $49 |
| Software Integration | Built-in POS system | Requires GoPayment App |
Square stands out with its dedicated hardware options, such as the Square Register and Terminal, which cater to businesses with higher transaction volumes. QuickBooks Payments offers more basic options for businesses with minimal in-person sales needs.
Takeaway
For advanced POS needs, Square is the clear winner. However, for businesses just starting, QuickBooks Payments provides a cost-effective entry point.
3. E-Commerce Integration
E-commerce has become a cornerstone for many businesses, and integration capabilities are critical.
- Square offers extensive flexibility, integrating with numerous platforms like Wix, WooCommerce, Shopify, BigCommerce, and more. Additionally, Square provides a free e-commerce website builder, allowing businesses to start selling online with minimal investment.
- QuickBooks Payments integrates directly with BigCommerce and Shopify, making it a great option if you already use these platforms.
Takeaway
Square’s diverse e-commerce integrations make it the better choice for online businesses looking for flexibility.
4. Transaction and Monthly Fees
Understanding fee structures is essential for managing costs.
QuickBooks Payments Fees
- Card Swiped: 2.4% + $0.25
- Card Not Present: 2.9% + $0.25
- Card Keyed: 3.4% + $0.25
Square Fees
- Card Swiped: 2.6% + $0.10
- Card Not Present: 2.9% + $0.30
- Card Keyed: 3.5% + $0.15
Key Insights:
- For smaller transactions, Square’s lower flat fee ($0.10 vs. $0.25) makes it more affordable.
- For larger transactions, QuickBooks Payments’ lower percentage fees save money.
Monthly Fees
- Square: Free for basic accounts, with premium options starting at $60/month for advanced inventory tools.
- QuickBooks Payments: No additional fee, but a QuickBooks subscription (starting at $25/month) is required.
Takeaway
For businesses with high volumes of small sales, Square is cost-effective. If your sales are primarily larger transactions, consider QuickBooks Payments.
5. Bank Transfers and Payout Speed
- Square: Offers free ACH transfers within 1–2 business days. Instant transfers are available for a 1.5% fee or free with the Square Mastercard®.
- QuickBooks Payments: Charges 1% for ACH transfers. Funds can be accessed quickly through QuickBooks Cash.
Takeaway
Square provides more flexible payout options with no fees for standard transfers, making it the winner for businesses prioritizing cash flow.
6. Syncing with Accounting Tools
If you use QuickBooks for accounting, the Sync with Square app simplifies reconciliation by importing Square transactions. However, the tool has limitations, such as lacking multi-location support and customer data import.
Takeaway
While Square integrates well with QuickBooks, if accounting is your top priority, QuickBooks Payments offers seamless functionality without third-party tools.
Square vs QuickBooks – Which is Best for Payment Processing?
Summary Table: Feature Comparison
| Feature | Square | QuickBooks Payments |
|---|---|---|
| Payment Types | Credit, debit, ACH, cash | Credit, debit, ACH |
| POS Hardware | Advanced options like Terminal/Register | Basic readers |
| E-Commerce Integrations | Multiple platforms + free site builder | Limited to Shopify & BigCommerce |
| Transaction Fees | Better for small transactions | Ideal for large transactions |
| Monthly Costs | Free basic plans, $60+ for premium | Requires QuickBooks subscription |
| Bank Transfers | Free ACH, instant with Mastercard | 1% fee for ACH transfers |
FAQs About Square Vs QuickBooks
1. Can I use QuickBooks Payments without QuickBooks Online?
No, you need a QuickBooks subscription to access QuickBooks Payments.
2. Does Square support recurring payments?
Yes, Square allows recurring billing for subscription services.
3. Which is better for online stores, Square or QuickBooks Payments?
Square offers better integration options and even a free e-commerce website builder, making it more suitable for online stores.
4. Are Square and QuickBooks Payments PCI compliant?
Yes, both are fully PCI compliant, ensuring secure transactions.
5. Which payment processor is more cost-effective?
For small transactions, Square is cheaper due to lower flat fees. For large transactions, QuickBooks Payments’ lower percentage fees may save you money.
6. Can QuickBooks Payments handle cash transactions?
No, QuickBooks Payments does not support cash transactions.
7. Does Square integrate with QuickBooks for accounting?
Yes, Square integrates with QuickBooks via the Sync with Square app.
8. Which is better for restaurants, Square or QuickBooks Payments?
Square, with its restaurant-specific POS features, is better for food and beverage businesses.
Conclusion
When deciding between Square vs QuickBooks – Which is Best for Payment Processing, your choice depends on your business model.
- Choose Square if you need a versatile POS system, accept cash payments, or require advanced e-commerce integration.
- Opt for QuickBooks Payments if you’re already using QuickBooks for accounting and prioritize invoice-based payments or large transactions.
Both tools are excellent choices for small businesses, and their strengths complement different needs. Consider your transaction types, sales volume, and integration preferences to make the best decision for your business.
