Square is not considered a high-risk processor itself, but it is a low-risk, aggregate provider that actively prohibits or restricts high-risk businesses. Square frequently freezes accounts or holds funds (up to 30% in reserves) for businesses in industries with high chargeback rates, such as CBD, travel, or adult entertainment.
In the USA, high-risk merchant account providers specialize in industries with complex regulatory and financial challenges. These providers: Offer flexible terms and conditions tailored for U.S.-based high-risk industries. Maintain partnerships with acquiring banks that understand high-risk sectors.
Square respects your privacy, and works hard to protect your personal information. Square's comprehensive security system protects both merchants and their customers through encryption, industry-standard security practices, and strict privacy policies.
Square vs PayPal: Risk management
Square and PayPal offer similar industry-standard risk management features. Both are Payment Card Industry (PCI) Level 1-compliant payment platforms equipped with machine-learning fraud protection tools and customizable filters.
Yes, we stress-test our systems and keep ahead of malicious actors. We're also committed to the highest standards of information security governance. We've achieved the renowned ISO 27001 certification. Square security is evaluated every day by public bounty researchers.
In my opinion, yes. Square is one of NerdWallet's top POS systems for a reason. It has competitive processing rates, relatively inexpensive hardware and an easy setup process. Plus, its POS software plans are some of the most reasonably priced on the market.
Shopify excels at robust, scalable e-commerce with extensive apps, marketing tools, and multichannel selling, ideal for online-focused businesses, while Square shines with its free-to-start POS, ease of use for brick-and-mortar, and industry-specific solutions (restaurants, salons), making it great for primarily in-person sellers needing simple online integration. The main trade-off is Shopify's stronger online features versus Square's simpler, often cheaper, in-person focus, though Shopify also offers powerful POS.
Once fraudsters hack into your account, they can get hold of your private information, divert your transfers, or commit credit card fraud. While the Square Secure team performs 24/7 fraud monitoring on your behalf, here are four things you can do to stop fraudsters in their tracks.
For every account that meets the Form 1099-K requirements, including non-profits, the IRS requires Square to report this information. According to the IRS, gross income is defined as all income from whatever source derived an individual or entity has received throughout the calendar year.
The transaction fees for online payments with Square are 2.9% + $0.30 per transaction. This rate is slightly higher than in-person transactions due to the increased risk and complexity involved in online payment processing.
The Best High Risk Merchant Account Providers in 2025
high-risk businesses are so-called because they present a risk to payment processors. The business itself might be risky (startup, bad credit history, lots of chargebacks). Alternatively, the industry itself might attract crime or legal issues (gambling, drugs, adult entertainment).
High-risk vendors may not adhere to legal requirements in areas such as labor practices, environmental standards, or data privacy. This can expose the organization to potential legal actions, fines, and reputational damage.
Beyond its user-friendliness and affordability, Square Online's seamless support for in-person POS makes it perhaps the best choice for retailers and service vendors. And it delivers tools that other builders rarely offer, like age verification pop-ups and a unique product photo editor.
Shopify's biggest competitors vary by business size and needs, but BigCommerce is often cited as its most direct rival for growing and enterprise businesses, while WooCommerce (for WordPress users) and simpler builders like Wix and Squarespace compete for smaller merchants, and larger platforms like Adobe Commerce (Magento) target large enterprises. BigCommerce is known for built-in features and scalability, whereas WooCommerce offers ultimate control, and Wix/Squarespace focus on ease of design for beginners.
Square stands out for its competitive pricing, ease of use, and extensive reach. On the other hand, Moneris provides a reliable and secure payment processing service with a range of hardware options.
Square's transaction fees vary by payment type, but generally range from 2.6% + 15¢ for in-person tap, dip, or swipe, 2.9% + 30¢ for online/e-commerce (though sometimes 3.3% + 30¢), and 3.5% + 15¢ for manually keyed-in cards, with different rates for invoices, Afterpay, and lower tiers like Square Plus or Square Premium.
There's no single "most" secure app, but Apple Pay, Google Pay (Wallet), and Zelle are top contenders due to strong encryption, tokenization (hiding card numbers), and integration with banking/devices, with Apple Pay often cited for highest privacy/security by consumer reports, while Zelle offers seamless bank integration but is riskier for scams if used improperly. PayPal also offers strong protection and fraud monitoring for online use.
An account takeover happens when a hacker logs in to your Square account and uses it to commit fraud. To do this, they only need access to your email address and password. Account takeovers can result in chargebacks and lost sales and present a reputation risk if the hackers pose as your business.