Payment Depot vs. Square: Which Solution is Right for Your Business?

Payment Depot vs. Square: Which Solution is Right for Your Business?

It can be hard to differentiate between honest reviews and promotional materials in the payments industry. This makes choosing a payment processor difficult since you’re stuck trying to extract real information from oodles of sponsored marketing content. 

We get it. 

In this article, discussing Payment Depot vs. Square, we’ll strive to remain objective. After all, Payment Depot’s business model is rooted in transparency. And the cold hard truth is that, for some businesses, Square is a better option. Payment Depot is always upfront about this to merchants.  

So let’s delve in and figure this thing out, shall we?

Features and capabilities

Payment Depot is a merchant services provider. This means that Payment Depot might take a bit more time to get up-and-running, but it offers heightened account security as compared to payment aggregators. Payment Depot’s defining feature is that it’s one of the few payment processors out there that charge a flat fee over interchange. 

This is called interchange-plus pricing, and it means that, instead of taking a percentage of each sale you make (like most credit card processors), Payment Depot merchant services charges you a monthly fee plus a fixed fee on each transaction––making it easier to make money if your business has a high transaction volume. 

Square, on the other hand, is a payment aggregator. Payment aggregators approve accounts quickly, but they also can suspend them for suspicious activity without forewarning. Because of this, payment aggregators work best for young businesses with low transaction volumes that need to get up-and-running quickly. Square charges a fixed fee per transaction, which makes it a great choice for businesses with lower transaction volumes that may wind up overpaying with a monthly fee. 

Pricing breakdown

Payment Depot’s pricing model is relatively simple. Its fee structure varies based on which of four packages you choose: Basic, Most Popular, Best Value, and Premier. Let’s take a look at Payment Depot’s fees for each package:

  • Basic: $49 a month + interchange and a $0.15 transaction fee on each sale. 
  • Most Popular: $79 a month + interchange and a $0.10 transaction fee on each sale.
  • Best Value: $99 a month + interchange and a $0.07 transaction fee on each sale.
  • Premier: $199 a month + interchange and a $0.05 transaction fee on each sale. 

What is interchange, you may ask? The interchange fee comes directly from the credit card company (such as Visa or Mastercard). Payment Depot’s interchange rates are the same as every other company. Click here for a comprehensive breakdown on interchange fees. 

Square charges 2.6% + $.10 on every single transaction. Pretty simple. Square doesn’t charge a monthly fee, which makes it awesome for SMBs. However, by taking a substantial percentage from each transaction, Square rates wind up being more expensive than P.D.’s interchange-plus pricing model for businesses that process more than $2,500 a month. 

So, back to the Square vs Payment Depot question: The option that’s right for your business will ultimately be determined by how much your business processes in transactions each month, the size of each transaction (since Square takes a percentage), and whether your business can handle the unexpected shutdowns that can come when working with a payment aggregator. 

Customer service

Alright, y’all. Here’s an area where Payment Depot really shines. Payment Depot offers award-winning 24/7 in-house customer service––meaning a Payment Depot rep who’s well-versed in their products is always on-call to answer your customer service questions. They also have a 90-day money back guarantee. So in the rare case that P.D. isn’t the most cost-effective option for your business, you can try something else without any hassle. 

Square’s customer service proposition? Not so sexy. Square’s customer service hours run between 6 a.m. to 9 p.m. Pacific Time, Monday through Friday. You have to get a specific outreach code to connect with Square’s customer service reps, which is why Square is only rocking a measly 2/5 stars on ConsumerAffairs.com. However, Square also offers a robust online seller forum and customer support in the form of online content––articles, videos, etc.–– so there’s the opportunity to DIY problem solve if you’re so inclined. 

Hardware offerings

Merchant Taking Sale With Chip And Swipe Reader

Payment Depot’s virtual terminal is compatible with most credit card processing equipment and POS stations. If you prefer to buy hardware directly through Payment Depot, however that’s also an option. P.D. offers standard terminals, smart terminals, and full POS solutions from Clover, Swipe, Poynt, and Vital. 

But Square is also no slouch in the hardware department. First of all, Square is notorious for its easy-to-use app interface. And Square registers, stands, and swipe stations are all relatively inexpensive––they’ll run you between $10 to $800, but you can also break your payment down into monthly installments on Square’s website.

Bringing it all together

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Payment Depot merchant services and Square Inc. are vastly different companies. The two most notable differences being 1) their fee structure and 2) the fact that P.D. is a merchant services provider and Square is a payment aggregator. As a result, Payment Depot is great for high volume credit card processing, while Square is more cost-effective for merchants that process fewer transactions and under $2,500 a year. Payment Depot helps mid to high volume merchants save an average of $400 a month on credit card processing. 


FAQs about Payment Depot

Q: What is Payment Depot and how does it operate?

Payment Depot functions as a Merchant Services Provider. It stands out due to its unique “interchange-plus pricing” model, allowing businesses to remit a monthly fee plus a fixed transaction fee instead of a percentage of each sale. This model lends itself to higher transaction volumes.

Q: How does Square differ from Payment Depot in terms of operational model?

Square operates as a Payment Aggregator, providing quick account approval but at the cost of potentially suspending them for suspicious activity without prior warning. Square charges a fixed fee per transaction and is ideal for businesses with lower transaction volumes.

Q: How does the pricing work in the case of Payment Depot?

The fees at Payment Depot vary based on the plan a business opts for. Four packages with varied monthly fees and transaction charges on top of the interchange fee are offered: Basic, Most Popular, Best Value, and Premier.

Q: What is the pricing model used by Square?

Square charges a transaction fee of 2.6% + $0.10 per transaction without any monthly charges. This would be costlier than Payment Depot’s approach for businesses that process more than $2,500 a month.

Q: What are the customer service offerings presented by Payment Depot and Square?

Payment Depot provides 24/7 award-winning, in-house customer service with a representative always ready to field queries. Square’s customer service hours are more limited and require an outreach code to connect with their reps. However, their extensive online content and forums provide do-it-yourself problem-solving opportunities.

Q: What hardware options are available at Payment Depot?

Payment Depot’s virtual terminal is compatible with most credit card processing equipment and POS stations. In addition, they offer standard terminals, smart terminals, and full POS solutions from various providers that may be purchased through them.

Q: How compatible is Square with hardware options and availability?

Square’s easy-to-use app interface works with their universally known registers, stands, and swipe stations. Payment can be broken down into monthly installments on their website.

Q: How have Payment Depot and Square been reviewed by the Better Business Bureau?

Payment Depot is BBB accredited with an “A+” rating while Square is not accredited, scoring an “F” rating.

Q: Which is the appropriate choice for my business – Payment Depot or Square?

The choice depends on your business’s transaction volume and size. Payment Depot is the most beneficial for higher transaction volumes, while Square is beneficial for businesses processing fewer transactions and under $2,500 a year. Also, businesses need to be aware of the possible unexpected shutdowns with a payment aggregator like Square.


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