Comparing payment systems is a smart practice. It is best that you know the advantages and disadvantages of the system that you select. Having surprises when it comes to your money is never a good thing.
That is why we are looking at Square vs. PayPal.
These are two popular systems, which many merchants and individuals consider from time to time.
Square vs Paypal:
The Pros and Cons of Using Square
“Square is one of the most popular mobile payments services, claiming to have more than 2 million users. Its card reader is a small, white square that plugs directly into smartphones and tablets.”
The Square app can be located at Cash.me website. This app is similar to PayPal and Google Wallet.
Square Cash permits you to transfer money directly to people using your email rather than with an online cash app. This is typically linked to your debit or credit card.
You can download that app using the iTunes store or on your Android phone, using Google Play.
A third of Smartphone users send money via money transfer app at least once every 6 months. This is according to eMarketer.
The Features of Square Cash
You can send money using square cash in one of three ways. These include:
Advantages with the Square System
The Square Cash has its advantages and disadvantages some people prefer to use PayPal are this prefer to use Venmo. But today, we are reviewing Square vs. PayPal.
Easy To Navigate
One of the advantages of using the Square app is that it is easy to navigate. It has easy to follow navigation and is very intuitive for users.
Custom Product Photos
There is an iPad version, ‘Square Register,’ which permits users to insert custom product photos. This assists in simplifying the check-out process.
Square Cash Online Dashboard
There is also an online dashboard, which tracks detailed sales information.
For example, you can look at charts and analyze day-to-day transactions even through the following weeks and months performances.
Set up Rewards Programs
Companies can also custom customize their rewards program. They can also create a feature called a digital punch card.
There is also a "Pay with Square" feature. Repeat customers can go into virtual labs and use their phones without having to use their credit cards.
Disadvantages with the Square System
Unfortunately, there are disadvantages in using the square app, notwithstanding it is predominantly an Apple iPhone product. These causes it to perform less than stellar when we look at Square Vs PayPal.
Lacking in Tech Support
The help center does not seem fully supported by a humans tech support. It usually relies on an AI system. As such you can have a difficult time trying to set custom features.
This can make the process very tedious for people who are not so tech savvy.
Another disadvantage is as it relates to the fees.
“Square has a 2.75 percent swipe fee, plus an additional 3.5 percent and a 15-cent transaction fee for card numbers that are keyed in manually.”
If you have a small business, then you can use this application on your iPhone.
Square vs Paypal:
The Pros and Cons of Using PayPal
“PayPal Holdings, Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like cheques and money orders. The company operates as a payment processor for online vendors, auction sites, and other commercial users, for which it charges a small fee in exchange for benefits such as one-click transactions and password memory.”
There is no doubt that PayPal is a widely used payment processing platform. This is especially true when it comes to dealing with payment specific to internet marketing.
PayPal gives you a number of benefits. This usually makes them the first choice when it comes to handling payments online.
But there are both advantages and disadvantages to using PayPal.
Advantages with the PayPal System
PayPal is very easy to set up an account, whether it is an individual or merchant account. This is why many people choose to use their platform.
Another advantage is that you don't need to have a lot of paperwork. For example, if you were using a credit check site or applying for a credit card or using some other money services website.
Instant Access to your Money
If someone sends you money, you have instant access to the account. You can send the money that you have to a bank account or you can have it sent straight to your debit card or a credit card.
For standard merchant accounts, you generally have to fill in the information for a fax number a contact number and complete tons of other paperwork. You might also need to submit a credit check and this should just take a number of days before you get paid.
Also, for merchant accounts, they sometimes take a percentage. However, with PayPal, you don't have these consequences. The percentage that PayPal takes is very minimal. So they are the better alternative for your business because you will keep a lot more of the profits.
They have cheaper fees.
For example, at present, they have charges of under 3%. This might work out to be just 30 cents of your transaction. Meanwhile if you some other merchant accounts they can charge you as much as 10 to 15% on an individual transaction.
So you can see that PayPal is easier to work with and it makes sense of your business.
Built-In Recurring Billing System
Another advantage of the PayPal system is that they have a built-in recurring billing system.
This can be aided on your end with software to manage automatic cancellations by your IPN if you don't want to deal with that myself.
Super Easy to Setup Payment Buttons on Your Sites
PayPal allows you to set up payment buttons on your system or through their system by your website.
Other payment processors make this so complex and frustrating. However, with PayPal, it is straightforward and uncomplicated.
Disadvantages with the PayPal System
Nevertheless, it's not that PayPal is without disadvantages. It is just like other systems, but admittedly better.
Long List of Regulations
One of the problems in using this website is that you have to comply with a long list of regulations.
So, if you want to use their payment structure for an affiliate program, you might not want to sell anything that has anything to do with an MLM. You have to look elsewhere because PayPal does not support open MLM.
MLM companies are you closely associated with being a pyramid scheme.
Not to mention the ton of other rules buried in the fine print. If you do not comply your account can be deactivated and of course this will hold your money for upwards of six months.
Other systems are not so regimental they are a little bit more accommodating.
This is not great for PayPal. Because with other merchant account systems you don’t have to deal with this. It affects your business and money coming in, on the daily basis.
So long as your processes and your payments are legal, most other systems are less regimental.
Follow their Buyer Protection Policy
Another disadvantage to consider about Square Vs PayPal is that using the PayPal system when selling physical products, you must maintain to the rules of the buyer protection policy.
Sometimes a buyer complains about a product that they have received. Make sure you have a system that tracks delivery of these items, through PayPal.
Yes, the shipping process can seem a little bit more complex that it has to be because of the buyer protection policy.
So, simply ensure that you ship using a method, which gives you have verifiable confirmation of the delivery. Just in case your buyer makes a compliment.
Closing of Accounts on PayPal
PayPal also has another disadvantage. Some merchants have complained about temporary disarming of accounts.
If PayPal notices there is a large increase in money going to your account that has no history of doing so before, they can lock your account and do investigations.
Then you have to go through some tedious processes just to vouch for and verify your account transactions. Not to mention trying to get it open and running again is a hassle.
In the meantime, your business loses money.
Customer Service is Not Quickly Responsive
Another downside with the system is they can be slow in responding to issues. Some new successful organizations will find this problematic.
It is hard dealing with this system if there is an emergency.
This is because, in terms of their customer service, you might not get a response immediately and have to wait for an agent to get back to you.
This can make the situation much worse.
Which Will You Choose At The End Of The Day, Square Vs PayPal?
Even though they're all these disadvantages to using PayPal, the advantages are numerous pays off in the long run, but especially in the short term.
They have a safe system and tons of customers. PayPal supports thousands of individuals and online merchants. Not to mention, they have a proven record and a long established reputation.
This makes Square vs. PayPal a great alternative as a merchant account system.