Lately, I’ve been looking for different ways to accept payments. I know I’m not the only one either. I receive many emails each month from readers who side hustle and/or run their own business and want to save money when processing transactions.
I currently use PayPal and the fees can add up very quickly. When using PayPal, the fee is 2.9% plus $0.30 of the amount you receive. This can easily add up to a few thousand dollars each year if you receive many of your payments through PayPal.
Even though PayPal is something I’ve been using for years, I knew there had to be something better. Cash and checks are great too, but when you run an online/location independent business, it’s not always the best choice.
Turns out there is something that is a much better option.
Square Cash is a great way for small businesses to accept payments.
I recently heard about Square Cash as a new way to accept payments. You’ve probably heard of Square before. Square Cash is directly related to Square, so you know that it has to be good! This is a big reason for why I tried out Square Cash, I’ve used Square before and it’s always been super easy to use.
Square Cash is a FREE way to send and receive money to/from others if you are just a personal user. If you are a small business, the fee to receive a payment is just 1.5%. That’s almost HALF of what PayPal charges. It may not seem like a huge difference percentage-wise, but over the course of a year it can really add up to a significant amount of money.
Square Cash makes it easy with $Cashtags.
You are probably wondering how you receive payments. This part is so easy that I was confused in the beginning because I didn’t think it could be this easy.
Square Cash also makes it very easy to receive payments. Instead of waiting for someone to give you cash or to send you a check, they can do the same thing through Square Cash without the delay.
For a business to accept money, they will use a $Cashtag. A $Cashtag is pretty much your username so that clients/customers can easily pay you what they need to by just entering your $Cashtag.
Customers can also pay via your web URL easily. Square Cash allows you to have a unique web URL that you can give to customers so that they can pay you directly. All they have to do is enter their payment with an optional note.
If you want to see an example, my URL is cash.me/$MichelleGardner.
Receiving each payment through Square Cash is done easily.
You may be wondering what happens after a customer pays you through Square Cash. Where does the money go? Does it sit in some sort of Square Cash bank account?
After a customer pays you (or after a friend sends you money), the money is automatically deposited into your bank account. Just like with any deposit, it sometimes may take a few days to clear. Since the money goes directly to your bank account, it makes it very easy to run a business.
Square Cash is safe.
Since this is money that we are talking about, you are probably wondering about how safe Square Cash is.
Square Cash is very safe. Square Cash uses/offers:
- Security locks with option Touch ID verification or CVV verification;
- Encrypted data so that your information remains safe;
- Account notifications so that you are always updated on changes to your account; and
- Fraud protection.
If you just want a quick summary of this review, here’s Square Cash’s description on iTunes. Yup, it’s really this easy:
Quickly send money between friends, or get paid for your business. No “cashing out” – money deposits directly to your bank account. It’s FREE between friends, and only 1.5% for businesses!
If you’re interested in trying Cash, send me an email at senseofcents(at)gmail.com and I will send you an invite link that will give you $5 after you use Square Cash for your first time. This is for both personal and business users.
What do you currently use to receive payments for your products or services?
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Revanche says
I’d wondered if Square itself would be worth using if your clients wanted to pay by CC but good to know they have a cash transfer option! I used to love ING Direct’s account to account transfer option and Venmo was convenient sometimes, but I haven’t found a payment system that I love yet.
Michelle Schroeder-Gardner says
Square Cash makes it so easy! I’m definitely going to use it as much as I can.
William says
MUCH better than PayPal. But can it be used to send money to non-US bank accounts?
Michelle Schroeder-Gardner says
I believe it’s only U.S. based for right now. I’m not 100% positive though.
Kristina-Cents and Order says
Looks like a great alternative to PayPal! I could see this being a great way for friends/family to collect money for gifts or to purchase event tickets all at once.
At 1.5%, I’ll have to keep this in mind when I’m ready to start offering services. Thanks for sharing!
Michelle Schroeder-Gardner says
Yes, I definitely recommend looking into it. Thanks Kristina!
Allison @ Frugal on the Prairie says
I can’t believe this post came out today. I was just looking for an alternative to PayPal this morning. I work as a Virtual Assistant and that 3% really starts to hurt after a while.Thanks for sharing, Michelle!
Michelle Schroeder-Gardner says
Welcome! If you want, you can also email me and I can send an invite link for a free $5!
Kalie says
I hadn’t heard of this but what a great tool for friends or payments between businesses. I love how accessible it is. Thanks for sharing.
Michelle Schroeder-Gardner says
Welcome!
Erin @ Erin's Inside Job says
This is great! I am working more with freelancing and so I like knowing all the options available. One place I write for pays me monthly using Chase. Only one of you needs to have a Chase account and there are no fees when I get paid. I will have to check this out…thanks for sharing!
Michelle Schroeder-Gardner says
Welcome Erin!
diane @smartmoneysimplelife says
PayPal is an interesting beast; expensive to use and on occasions, hard to deal with. Given they’ll be splitting from eBay soon, things might change… but I wouldn’t bank on it.
I’ve just taken a quick spin around Square Cash and at the moment it looks like it’s only available in the US, Canada and Japan. I have my fingers crossed we’ll see it become available in Australia soon. PayPal is good for credit card transactions but bank transfer payments can take over a week to clear. So, it’d be nice to have a simple option to offer like Square Cash.
Thanks for the info, Michelle!
Michelle Schroeder-Gardner says
I hope it’s offered everywhere soon!
Kim @ YourFinanceProfessor says
Thanks for sharing this! I’m definitely going to look into this as an alternative but don’t think I’ll be able to get away from Paypal anytime soon. It seems that almost everyone requires that you receive your payments through Paypal.
Michelle Schroeder-Gardner says
If you do decide to look into it, send me an email! I can send you an invite that’ll give you $5 for free!
Financial Conversation says
Thanks for this review Michelle. I’ve been wondering about different ways to cut down on my fees. They do add up quickly!
Michelle Schroeder-Gardner says
Welcome! 🙂
Becca says
So is Square cash only good for checking account to checking account via debit cards? And for credit OR debit swipes in person you could use the square up swiper? Are the 2 linked in any way or just both individually linked to your bank account?
This is definitely new and interesting! Worth investigating further! I might hit you up for your referral link later. Thanks for sharing
Brittany at Equipping Godly Women says
Interesting…. I think my biggest concern is that other bloggers I write for wouldn’t like that it would be “off the books” for them if they track most everything through Paypal. I know I do.
Grayson @ iMark Interactive says
Hey Michelle,
I’m always on the look out for cheaper was to get money. Have you thought about using Freshbooks for your invoicing? If people pay with Paypal, it’s only $0.50! You can also accept credit cards at the standar 2.9% +$0.30. It’s been good for my business.