As small businesses conduct transactions in the digital and physical world, having a payment system with seamless integration is essential. The addition of a free debit card by Square (NYSE: SQ) will further bring both worlds together while giving sellers real-time access to the funds they need.
Square Debit Card
Square Card is a free business debit MasterCard designed to help businesses manage their cash flow. According to the company, the new card will make the funds from a sale available right away in order to help with overall cash flow management.
One of the biggest challenges small businesses face is access to capital. By making the funds from each transaction available instantly, it gives owners the flexibility they need to address immediate financial needs.
This was one of the points Alyssa Henry, Seller Lead at Square, explained in the press release. Henry said, “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.”
This Square ecosystem is a fully integrated payment platform which has been designed to bring the physical and digital worlds together.
The solution the company provides offers small businesses an affordable and highly transparent platform.
In the press release, Square said it wants the card to provide new flexibility to underserved small businesses. This includes the ability to easily access and manage the funds without the complexities of traditional payment and/or banking systems.
Square Card is linked to your point-of-sale system, so anytime a transaction takes place you can access the funds right away. By storing the sales in your Square balance instead of a bank account you don’t have to wait for bank transfers.
Another benefit of this ecosystem is Square is not going to charge you the different fees banks thrive on. There are no minimum balance fees, overdraft fees, annual fees, or any other service fees. You just use your card like any other business debit card anywhere MasterCard is accepted.
When you need cash, you can go to an ATM and withdraw cash without incurring any fees from Square. This, of course, doesn’t include fees charged by the ATM provider.
If you happen to be in a store or website of a Square seller, you will get a 2.75% discount off your purchase. This is another way you can drive more customers to your business as a square seller.
As part of the Square ecosystem, you’ll be able to track business expenses in one place while separating your personal and business transactions.
You can use your Square Dashboard and Square Point of Sale system to view purchases of Square Card activity alongside a record of sales.
The records can be downloaded for accounting purposes, taxes, audits, inventory, and more all within one application.
If you are an existing or new Square seller, you can get the Square Card now.
Cool option for Square vendors and this is the kind of feature that helps them get more and more SMBs using their platform.