Navigating the world of payment processing systems can seem a daunting task, especially given the number of companies vying for your attention. This article aims to demystify two of the most popular options in the market: Worldpay vs Square. By the end of this piece, you’ll have a clear understanding of the services offered by each, along with their relative merits and drawbacks.
Worldpay vs Square
| Features/Fees | Worldpay | Square |
|---|---|---|
| Pricing Structure | Quote-based | Flat-rate |
| Transaction Fees | Varies, based on quote | 1.75% (chip and PIN/contactless) |
| PCI Compliance Fees | Yes (amount varies) | No |
| Payment Gateway Fees | Yes (amount varies) | No |
| Early Termination Fees | Yes (amount varies) | No |
| Payment Options | Credit/debit cards, mobile wallets, multi-currency | Credit/debit cards, mobile wallets |
| Hardware Options | Countertop, portable, mobile card machines, POS systems | Square Reader, Square Stand, Square Terminal, Square Register |
| Customer Support | 24/7 support | 24/7 support and self-service portal |
| Security | PCI DSS compliant | PCI DSS compliant |
| eCommerce Integration | Yes | Yes |
| Mobile Payment Option | Yes | Yes |
This table offers a general comparison, and it’s essential to consider your specific business needs and circumstances when choosing a payment processor.
A brief overview of Worldpay and Square
Worldpay and Square are both renowned payment processing companies, but they follow different models.
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Worldpay, a UK-based entity, has been a longstanding stalwart in the industry, boasting decades of experience in payment processing. The firm was acquired by FIS in 2019, which has since solidified its global presence.
Square, on the other hand, is a relatively young company. Launched by Twitter co-founder Jack Dorsey in 2009, it’s a US-based firm that quickly gained traction with small to mid-sized businesses due to its user-friendly interface and simplified pricing.
Pricing and fees
When comparing Worldpay and Square, it’s crucial to discuss pricing structure, since it’s a vital determinant for many businesses.
Worldpay
Worldpay operates on a quote-based system, meaning the fees vary depending on your business’s unique needs and transaction volume. This model offers greater flexibility and potentially lower costs for businesses with high transaction volumes or those that can negotiate lower rates.
However, this pricing method can lead to a lack of transparency as merchants might not have a clear idea of the costs until they’ve engaged in a lengthy sales process. Also, additional fees may apply, including PCI compliance fees, payment gateway fees, and early termination fees if you decide to switch providers.
Square
In contrast, Square adopts a flat-rate pricing model, charging a standard fee for each transaction. Square’s rates for card-present transactions are 1.75% for chip and PIN or contactless payments in the UK.
This model is straightforward and predictable, making budgeting easier for business owners. However, as transaction volumes increase, businesses may find that Square becomes a costlier option, especially if they could negotiate lower rates with other providers.
Payment options and compatibility
In our increasingly digital world, being able to accept various forms of payment is a significant advantage.
Worldpay
Worldpay stands out for its wide range of payment options, accepting a variety of credit cards and debit cards, along with mobile wallet payments such as Apple Pay and Google Pay. It also handles multiple currencies, making it a good fit for businesses operating internationally.
In terms of hardware compatibility, Worldpay offers a variety of POS terminal options, from countertop devices to mobile card machines, catering to businesses of all sizes. It also integrates with various eCommerce platforms and shopping carts for online businesses.
Square
Square is somewhat more limited, primarily accepting Visa, MasterCard, American Express, and mobile payments. However, it’s worth noting that Square’s hardware – particularly its stylish, minimalistic readers and stands – have become something of an industry standard in many retail and hospitality environments. It’s also highly compatible with both iOS and Android devices and can integrate with a wide range of third-party apps and software.
Hardware comparison
The hardware a payment processor provides is critical, as it’s the point of contact between your business and your customers’ payments. Here’s how Worldpay vs Square stack up in terms of their hardware offerings:
Worldpay
Worldpay offers a range of hardware options to cater to different business needs. Its countertop card machines are perfect for fixed checkout locations, offering fast and secure transactions.
For businesses that require flexibility, Worldpay offers portable card machines that operate via Wi-Fi or Bluetooth, allowing payments to be taken anywhere within your premises. Furthermore, Worldpay’s mobile card machine enables payments on the go, using a GPRS data connection. This is especially beneficial for businesses such as food trucks, market traders, and mobile services.
Additionally, Worldpay also provides a variety of point of sale (POS) systems, including fully integrated systems that combine hardware and software for a seamless experience. These systems can be tailored to suit specific business requirements, including retail, hospitality, or large-scale enterprises.
Square
Square’s approach to hardware is sleek, modern, and user-friendly. Its most recognisable offering is the Square Reader, a compact card reader that can be used to accept chip and PIN and contactless payments. Paired with a smartphone or tablet running the Square Point of Sale app, the Reader offers a mobile payment solution that’s particularly popular with small businesses and those just starting out.
For more established businesses, Square offers the Square Stand for iPad, which transforms an iPad into a complete POS system. For businesses looking for a fully integrated solution, the Square Terminal combines a card reader, receipt printer, and digital interface in one device, and the Square Register is a fully integrated POS system with a customer-facing display.
While Square’s hardware may not offer as much variety as Worldpay’s, its aesthetic appeal, simplicity, and competitive pricing make it a popular choice, particularly amongst SMEs and startups.
Hardware – Making the right choice
Choosing the right hardware boils down to your business needs. If your business operates in multiple locations or on-the-go, Worldpay’s range of mobile and portable options may be more suitable. However, if simplicity, design, and ease of use are key factors for you, then Square’s intuitive, sleek hardware might be the better choice.
Remember, the choice of payment processing system is significant and requires a comprehensive understanding of both your current business operations and your plans for future growth. Take the time to thoroughly investigate all available options before making your decision.
Customer service and support
Customer support is another crucial aspect of any service-based offering.
Worldpay
Worldpay provides 24/7 customer service, which can be a lifesaver in a pinch. However, some customers have reported long waiting times and varying levels of service quality.
Square
Square also offers round-the-clock support but, rather uniquely, they have a robust online self-service portal. This portal is full of articles and resources that allow businesses to troubleshoot issues on their own, a feature which many of Square’s customers appreciate.
Security
Both Worldpay and Square adhere to the highest industry standards regarding security. They’re both PCI DSS (Payment Card Industry Data Security Standard) compliant, ensuring that cardholder data is securely handled.
Conclusion – Worldpay vs Square
So, who comes out on top: Worldpay or Square?
There isn’t a definitive answer as the choice between the two largely depends on your business needs and preferences. Worldpay’s robust infrastructure and flexibility may appeal to larger, international businesses, while Square’s straightforward pricing and user-friendly approach make it an attractive choice for small to medium-sized businesses, especially those in the retail and hospitality sectors.
When making a choice, consider factors such as transaction volume, international requirements, the need for a simple or variable pricing structure, and the level of customer support desired. By weighing these factors, you’ll be able to make an informed choice that best suits your business needs.
FAQ
Worldpay uses a quote-based pricing structure, which varies based on each business’s unique requirements and transaction volume. Square, on the other hand, charges a standard flat rate for each transaction.
Yes, both Worldpay and Square can process mobile payments. They can also accept payments from a variety of credit and debit cards.
Yes, both Worldpay and Square have a broad international reach. Worldpay supports transactions in multiple currencies, which can be beneficial for businesses operating internationally.
Worldpay offers a variety of hardware options, including countertop, portable, and mobile card machines. Square offers hardware like the Square Reader, Square Stand, Square Terminal, and Square Register, which are known for their sleek design and user-friendliness.
Both Worldpay and Square offer 24/7 customer support. Square also has a comprehensive online self-service portal.
Both Worldpay and Square adhere to the Payment Card Industry Data Security Standard (PCI DSS), which ensures that cardholder data is securely handled.
Yes, both Worldpay and Square provide integrations with various eCommerce platforms, enabling online businesses to accept payments efficiently.
Worldpay’s quote-based model might include additional fees such as PCI compliance fees, payment gateway fees, and early termination fees. Square’s pricing is more straightforward, with a flat fee per transaction.
Both can serve small businesses well, but Square’s user-friendly approach and straightforward pricing have made it a popular choice amongst smaller operations.
The transaction processing times for both Worldpay and Square are relatively quick, typically happening in real-time. However, the time it takes for funds to reach your bank account may vary.
Yes, both Worldpay and Square can process high volumes of transactions. However, Worldpay might offer more competitive rates for businesses with high transaction volumes due to its quote-based pricing structure.
Yes, both Worldpay and Square offer comprehensive analytics and sales reports to help businesses track their performance.
Yes, both Worldpay and Square offer industry-specific solutions. Worldpay offers tailored POS systems, and Square has features beneficial for the hospitality industry, like tipping and splitting bills.
The process is straightforward with both, but Square is often praised for its quick and easy setup, which can be particularly appealing to new businesses.
While Worldpay and Square both offer their own hardware, the compatibility with third-party hardware can vary. It’s best to check with each provider.
Both Worldpay and Square allow businesses to issue refunds, though the process and any potential costs should be checked within their respective terms and conditions.
Both Worldpay and Square have restrictions on certain high-risk industries. Check their terms of service or contact their customer service for specific information.
Yes, businesses can switch from Worldpay to Square or vice versa. However, it’s worth noting that Worldpay may charge early termination fees.
Both Worldpay and Square provide ample resources and support to new customers, including user guides, tutorials, and customer support.
While Square generally operates without long-term contracts, Worldpay might require a contractual commitment, and there may be an early termination fee. It’s essential to check the details before signing up.