In an effort to make things easier for small business owners, Square has announced the Square debit card which gives sellers immediate access to their funds after completing a sale.
Businesses that sign up for the company's new debit card will also receive a 2.75 per cent discount on all purchases made with other sellers on its platform.
Generally when a merchant receives payment for a sale using Square, the funds usually take one or two business days to become available in their bank account.
Just as the company's instant deposit service did a few years ago with a fee of one per cent, its new debit card also gives sellers instant access to their funds though now this service is provided free of charge.
Anywhere that accepts Mastercard
While the new Square debit card is not intended to take the place of a traditional bank account, the new card can be used anywhere that accepts Mastercard and cash can be withdrawn via an ATM.
Merchants will also be able to view all of their Square Card transactions in a single online interface along with all of the sales they've made.
The new card even helps users differentiate between business and personal spending by marking a transaction within the company's POS app which could be quite useful when filling taxes.
Square seller lead Alyssa Henry explained the reasoning behind the company's new debit card 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 cashflow management. 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.”
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