Small Business News

Square Launches Square Credit Card, New Cash Flow Tools

by Kyle BurbankJun 29, 2023

The popular small buisness point-of-sale system Square has announced several new tools, features, and updates that are meant to better help sellers manage their cash flow.

About the announcements:

This week, Square announced that it was launching new cash flow management products in beta. Perhaps most notably, this includes the Square Credit Card, which will operate on the American Express network (although it will be issued by Celtic Bank).

According to Square, the new card will give sellers greater spending flexibility as well as earn rewards. Specifically, the company notes that the card will earn sellers free card processing as they spend. The offering will also have no late fees or annual fees. In terms of credit limit, that will be determined based on the sales that sellers process using Square and can adjust as their business grows.

Plans to launch a credit card in partnership with American Express were first announced late last year. The news also followed a streak of partnerships Amex had made, including deals with Cardless, WebBank, and Cross River Bank to have cards issued that operation on their payment network.

Currently, the Square Credit Card will be offered on an invite-only basis to eligible sellers. Additionally, in their FAQ section, Square notes that cardholders will be ineligible for a Square Loan and vice versa.

Speaking of Square Loans, the company has also unveiled plans to expand its program. Now, Square will offer some sellers the option to have loans that are repaid on a fixed monthly schedule rather than daily payments.

Rounding out Square’s updates, there are also some adjustments to Square Checking. Effective now, accountholders will enjoy quicker access to ACH deposits. This will allow them to receive funds from other channels such as e-commerce platforms or delivery apps up to two days sooner. Meanwhile, it was also announced that users will soon be able to connect up to four additional Debit Cards to their Square Checking account. This feature is set to launch later this year.

What they’re saying:

In a press release, Square Banking GM Christina Riechers said, “Square Banking’s integrated suite of software and financial services was designed to help small businesses gain efficiency and peace of mind when it comes to managing their finances. But businesses of all sizes face challenges managing cash flow, and those struggles can become more complex as a business grows, their revenues diversify, and their expenses multiply.” Riechers continued. “We’re expanding what Square Banking can provide to sellers, regardless of their size, to ensure they have the tools needed to grow their businesses, smooth out cash flow, and reduce the complexity of managing their inflows and outflows.”

My thoughts:

While Square was once known simply as a company that allowed small business owners to turn their smart phones into POS terminals, the FinTech has expanded greatly since then. Today, there’s an entire ecosystem that businesses can tap into. On that note, those who enjoy using the Square ecosystem may take an interest in the Square Credit Card — especially considering the potential rewards. At the same time, without the details, it’s hard to know whether sellers might be better served using a different business rewards credit card that offers cashback instead of free processing. With this feature and others still in beta, though, hopefully more will be learned about the Square Credit Card in the coming months as selected business owners put it to the test.

Author

Kyle Burbank

Head Writer ~ Fioney

Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

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