Though Square offers checking accounts, users will want to better manage their funds, which is why, account holders often want to transfer money from Square to bank account. Once in their bank account, they can withdraw the funds at an ATM, transfer it to a prepaid card or even use it to purchase goods and services.
Small companies all across the world use Square as their preferred payment method. The mobile system is free to use and provides merchants with a unique utility and agency. Square is, in fact, a separate account. When a customer pays, the money is transferred to a Square-owned account.
While Square does offer a business-owned checking and debit account, most sellers prefer to transfer their money from Square to bank account.
Square lets users transfer money to their bank account in a different ways, and on a couple of schedules. The system is simple to use, and business owners can manage their options via an online dashboard or the Square app.
As per your need for the funds, the process you will use might be different from that someone else will use. You should consider choosing the transfer process that will meet your expectations.
That said, in this article, I will show you all possible ways to transfer money from Square to bank account.
Table of Contents
What is Square?
Square now known as Block Inc., is a mobile payment company that provides a suite of business software, POS systems, payment equipment, and small business services.
Unlike most payment processors, Square is open to businesses of all sizes and provides the most comprehensive free point-of-sale system available.
Square's payment and point-of-sale app has been downloaded over 33 million times, with over 2 million active vendors.
How Does Square Work?
Square starts by accepting credit cards, contactless payments, and ACH transfers at a low flat fee.
Then, within its ecosystem, it offers a variety of products that work together to form a complete small business management solution. However, some of the solutions, such as Payroll, can be used independently.
Square continues to expand its small business offerings, from software updates to new systems (such as a kitchen display system) and, most recently, banking services.
Can You Transfer Money from Square to Bank Account?
Yes, you can. Users can transfer money from Square to bank account in different ways and on a variety of schedule. The time required for the transfer process to be completed depends on the type of transfer you choose (instant or manual) taking into consideration working days.
Square to Bank Account Transfer Options
| Name | Default Transfer Schedule | Instant Transfer | Manual Transfer |
|---|---|---|---|
| Speed of Transfer | Transfer initiated next working day around 16:00–arrives in account within an hour. |
Transfer sent instantly–arrives in 20 minutes. | Transfer sent within 24 hours of being initiated. |
| Transfers on weekends or holidays? | ❌ No | ✅ Yes | ❌ No |
| Action required? | ❌ Default option–no action required | ✅ Yes–manual action required | ✅ Yes–manual action required |
| Price | Free | 1% of transfer amount | Free |
Table source - Square.
Next-Business-Day Transfer Schedule
Transfers are initiated Monday through Thursday evening for payments made Monday through Thursday, and will arrive in your linked bank account in one to two business days, according to Square's standard transfer schedule. Friday payments will be sent on Sunday night and will arrive in your bank account on Monday (or Tuesday if Monday is a bank holiday).
Transfers are sent automatically on our Next Business Day schedule after you activate a Square Point of Sale account and link a bank account. Square will group and make payments based on the time you specify for your day to end. Your close of day is set to 5 p.m. PT/8 p.m. ET by default, but you can change it if your business stays open later.
You can also send instant transfers or same-day transfers to your linked account to get your funds faster. Learn more about several transfer schedule options available to you.
With Square's Next Business Day schedule and default cutoff times:
- Payments taken before 5 p.m. PT/8 p.m. ET will be available in your bank account the next business day. Payments accepted on Friday before 5 p.m PT will post to your bank account by Monday morning (depending on your bank’s processing speeds).
- Payments taken after 5 p.m. PT/8 p.m. ET will be available in your bank account by the second business day.
- Transfers are not sent on Saturdays.
With Square's next business day schedule and a customized close of day:
- If you choose a close of day time after 5 p.m. PT/8 p.m. ET (or your time zone’s equivalent), your transfer will be delayed one business day and you should receive your transfer two business days later (weekends and holidays excluded).
The table below details standard transfer times.
| Transaction Date | Transfer Initiated | Transfer Completed* |
|---|---|---|
| Sunday 5 p.m. PT to Monday 5 p.m. PT | Monday 8 p.m. PT | Tuesday morning |
| Monday 5 p.m. PT to Tuesday 5 p.m. PT | Tuesday 8 p.m. PT | Wednesday morning |
| Tuesday 5 p.m. PT to Wednesday 5 p.m. PT | Wednesday 8 p.m. PT | Thursday morning |
| Wednesday 5 p.m. PT to Thursday 5 p.m. PT | Thursday 8 p.m. PT | Friday morning |
| Thursday 5 p.m PT to Friday 5 p.m. PT | Sunday 8 p.m. PT | Monday morning |
| Friday 5 p.m. PT to Sunday 5 p.m. PT | Sunday 8 p.m. PT | Monday morning |
Table source - Square.
Note that transfer times are approximate.
Weekend Balance
Square keeps your Friday transfers in your balance over the weekend by default, so you can retrieve them instantly if needed. Your money will be transferred on Monday (or Tuesday, if Monday is a bank holiday).
If you don't want to wait until Monday morning to receive your Friday money, go to your online Square dashboard and make the following changes:
- Navigate to your Friday transfer settings in your online Square Dashboard.
- Toggle Weekend Balance off.
- Click Save.
Customized Close of Day Schedule
Square's default close of day is 24:00. You can customize your close of day to your preferred time for businesses open beyond midnight to ensure that a complete day's business activity is included in your transfer.
Square will group and deliver payments based on the time you set for your business to close each day. This is known as the "close of day."
If you select a time after 24:00 for the close of day, your transfer will be completed two working days later.
You can set a custom close of day time for each day of the week.
Here are the steps to set a close of day.
- Go to your Square online Dashboard.
- Navigate to Balance > Settings.
- Choose a day of the week and set your time zone and your close of day time. It’s recommended that you set your close of day one hour after your actual closing time to provide a window for last minute sales.
- Apply these settings to the rest of the week.
- Click Save.
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How to Transfer Money from Square to Bank Account
As earlier said, you can transfer money from Square to bank account in different ways. You can use either the manual or instant transfer (which will come with a fee) to complete the transfer to your bank account.
After you've accepted payment using Square, you can select from three different ways to receive your money. With Square's default, next-day transfer schedule, there are no transfer limits.
How to Transfer Money from Square to Bank Account Instantly
If you can't wait 36 hours to get your money, instant transfers are a great choice. While this is an appealing option, keep in mind that Square charges a 1.5 percent transaction fee for instant transfers.
You can transfer up to $10,000 per transfer instantly, 24 hours a day, 7 days a week.
You must also ensure that your account has a balance of $25 once the payment has been charged.
For instant transfers, you'll need to provide both your debit card and bank account information. The transfers are simple to set up once you've done that.
There is no limit to the number of instant transfers you can initiate on a given day.
Before Using Instant Transfer from Square to Bank Account
- Your minimum balance must be $25 for instant transfers and $1 for same-day transfer after Square’s processing and transfer fees.
- New Square sellers start with a limit of one instant transfer per day of up to $2000. As you run and grow your business with Square, a higher daily transfer amount may become available.
- Instant transfer may not be available for sellers using Square APIs until they have sufficient account history.
Setting Up Instant Transfer from Square to Bank Account
Once you've linked a bank account from the Square app or dashboard, you will be able to use the instant transfer option.
Square users who's bank accounts aren't supported can always use a debit card.
Setting Up Instant Transfer from the Square App.
- From the navigation menu, tap ≡ More.
- Tap Settings > Account > Transfers.
- Key in the required debit card information.
- Tap Link.
- Verify your bank account via the email sent to the address associated with your Square account.
Setting Up Instant Transfer from the Square Dashboard.
- Go to Balance on your online Square Dashboard.
- If you have an eligible pending transfer, click Transfer Now and enter and save your debit card information.
- Click on the reporting location, then click on the cog icon.
- Go to Transfer settings.
- Under "Instant Transfers," click Add a bank.
- Enter and save your account information.
Square will send an email to the email address linked to your Square account. If you're linking a debit card, you'll need to click the verification link in this email within 24 hours of getting it to confirm. Check your spam/junk folder or resend the email from Transfer settings > Transfers if you can't find it.
Note: You must have a bank account linked to your Square Account before you can set up instant transfers.
Transferring Money from Square to Bank Account Instantly
Before you use instant transfers, make sure your bank account is linked and verified in your online Square Dashboard's Transfer settings. Instant transfer fees appear in your online transfer reports under Instant Transfer.
Instant transfers are not allowed if your Square balance is less than $25 (after fees). You can send payments in an amount up to $10,000 in a single transaction.
Instant Transfer of Money from Square to Bank Account Using Square App
- Instant Transfer of Money from Square to Bank Account from Square App.
- Open your Square app and tap "Transactions."
- Now, select "Instantly Transfer."
- You'll see an in-app transfer confirmation and receive a confirmation email.
Instant Transfer of Money from Square to Bank Account Using Square Dashboard
- From your Home page, click Transfer Now > Transfer Now.
- From Balance, click Transfer Now. Or,
- From Transfer Settings > Transfers, click Transfer Now, located under instant transfer.
Note!
- If you run into any trouble with instant transfers, try these troubleshooting steps.
- You can schedule instant transfers ahead of time, so that you receive your funds every day at your Close of Day using same-day transfer.
Instant Transfers Pricing
In addition to Square's usual card processing costs, instant transfers cost 1.5 percent of total amount to be transferred. Any funds that aren't transferred instantly will be sent according to your regular transfer schedule.
Note that when you earn Free Processing, the cost of instant transfers is not recovered.
Supported Bank Accounts With Instant Transfers
Most banks in the United States are currently supported by Square. Credit cards, ATMs, PayPal, and prepaid bank cards are not yet supported. To use instant transfers, you'll need to link a supported bank account to your Square account.
Below are the banks supported by Square.
- Bank of America
- Citizens Bank
- Chase
- Huntington Bank
- PNC Bank
- Regions
- SunTrust
- TD Bank
Supported Debit Cards With Instant Transfers
Many different debit cards are supported with instant transfer. If you're having difficulties using a card, try linking a another debit card, or expect your deposits to be sent the next business day.
If you try to link a Visa or MasterCard debit card that was issued outside of the United States, it may be denied.
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How to Transfer Money from Square to Bank Account Manually
Your money will be sent to your bank account every night, Monday through Friday, by default.
Instead of automatic transfers, you can choose for manual transfers, which allow you to decide when your money is transferred. Your money will be available in your Square balance, and you will be able to choose when you want them to be sent to your linked bank account. Your money will then be transferred into your bank account the following business day - at no extra cost.
You are able to pause automatic nightly transfers and change to manual transfers, directly from your online Square Dashboard or from the Square app with the steps below.
- Navigate to Balance in your online Square Dashboard .
- Select Transfer Settings.
- Under Transfer Schedule > select Manual.
Transferring money from Square to bank account manually Using Square App
- Open your Square app.
- Tap "More" and navigate to "Balance."
- Finally, tap "Transfer out."
Transferring money from Square to bank account manually Using Square Dashboard
- Log in to your online Square Dashboard and navigate to the Balance tab.
- Select one of your locations under the Locations section.
- Tap Transfer out.
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Final Thoughts
Square is a mobile payment company that provides a suite of business software, POS systems, payment equipment, and small business services.
Unlike most payment processors, Square is open to businesses of all sizes and provides the most comprehensive free point-of-sale system available.
Square lets its users transfer money to their bank accounts in different ways on a variety of schedules. You can either transfer money from Square to bank account instantly or manually.
This article compiles the steps required to complete the transfer without hassle.
References:
https://fitsmallbusiness.com/what-is-square/
https://squareup.com/help/us/en/article/5438-next-business-day-deposit-schedule
https://squareup.com/help/gb/en/article/3807-deposit-options-with-square
https://squareup.com/help/gb/en/article/5439-customize-your-close-of-day
https://squareup.com/help/us/en/article/5405-set-up-and-manage-instant-deposits
https://squareup.com/help/us/en/article/6283-instant-deposit-unavailable-troubleshooting