Square Introduces Debit Card for Small Business Customers

Square may have built its main brand on offering payment solutions to small business owners but its latest product actually takes a page from one of the company’s other ventures. This week the brand unveiled the Square Card — a free Mastercard debit card product for small business owners. While the design of the card including the custom signature element may call to mind Square’s Cash Card, there are numerous differences between the two cards, with the Square Card offering some important benefits for entrepreneurs.

Perhaps the biggest selling point for the Square Card is that customers will be able to access their Square funds immediately. In contrast, previous payouts from Square sales could take days to process before ending up in owners’ bank accounts. Another feature will give cardholders 2.75% discount when using their Square Card at other Square-equipped locations. Not by accident, that percentage is identical to the flat transaction fee that Square point of sale customers currently pay. Design-wise, the card includes the aforementioned custom laser-etched signature along with the business name printed on the front. Finally another interesting difference between the Square Card and the Cash Card is that the former is a Mastercard while the latter is a Visa.

In a release announcing the Square Card, Square’s seller lead Alyssa Henry spoke to the benefits of the new offering, saying, “As sellers make crucial spending decisions, we know that fast access to funds – and the ability to put proceeds from sales to use immediately – can help with overall cash flow management.” She added, “Small businesses have to be nimble. They don’t have the time to wait for funds to clear a bank account, or the resources to easily reconcile personal versus business expenses. Square Card addresses these pain points, and further extends Square’s ecosystem of products and services for small businesses.” Vouching for the 2.75% discount that also comes with the card, De Colores Cookies y Más owner Ely Rooney said, “It’s a great feeling to support other small businesses since we’re all in this together. The fact that you’re also getting a reward is an added bonus.”

The Square Card doesn’t carry any minimum balance fees, sign-up fees, overdraft fees, or any other service fees and is now available to new and existing Square sellers. Also of note is that cardholders can elect to transfer funds to a linked bank account instantly for a 1% fee or wait the standard one to two business days for a fee-free transfer. With all that considered, the card sounds like another helpful small business tool from Square and one that seems poised to catch on in a big way.

Great news not only for small business owners but also for consumers. It not only provides small business more buyers but also more buying power for consumers.

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Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

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