Understanding Square Deposit Times and Options

Square, a popular payments platform, offers various deposit options to ensure merchants can access their funds efficiently. This article explores the deposit times, including the standard and instant deposit methods, to help merchants make informed decisions based on their needs.

Square Deposit Times

Square typically processes deposits within 1 to 2 business days after transactions are settled. However, for new accounts or in certain situations, the time may extend. For instance, if a transaction is processed before 5 PM Pacific time (8 PM Eastern time), your funds will typically be available the next business day. Transactions processed after this time will generally be available in 2 business days.

Banking Rush Hours and Standard Deposits

Understanding the timing can help merchants efficiently manage their funds. For example, if you swipe a card at 4:30 PM Pacific Time on a Tuesday, your funds will be available on Wednesday morning. If you swipe at 6:30 PM Pacific Time, the funds will be available on Thursday, assuming the transaction is settled by the close of business.

Standard Deposit Schedule

The standard deposit schedule, which applies to most transactions, does not include weekends or holidays. This means deposits are processed as follows:

With transactions before 5 PM Pacific time (8 PM Eastern time), the funds will be deposited the next business day. With transactions after 5 PM, the funds will be available in 2 business days.

Adjusting Business Closes

Square allows merchants to adjust their official 'Close of Business' times, and to group all transactions from one day into a single deposit. For example, if you set your close of business to 6 PM Pacific (9 PM Eastern) and select 'Next Business Day' as your standard deposit schedule, all transactions from that day will be deposited within two business days, rather than splitting them based on the 5 PM cut-off.

Introducing Instant Deposit

Instant Deposit is a feature that allows merchants to access their funds in a matter of minutes rather than waiting 1 to 2 business days. Here's a detailed breakdown of the requirements and benefits:

Requirements for Instant Deposit

The transaction sum must be at least $25. The maximum amount per transaction is $10,000. There is no limit to the number of instant deposits, but individual transactions exceeding $10,000 are not eligible for Instant Deposit. New sellers are limited to one Instant Deposit per day up to $500, with this limit increasing over time. A transaction fee of 1.5% of the deposit amount is charged, with the fee previously being 1%.

Calculation Example

Let's consider an example: if you process $575 in Square transactions in a day, the amount after Square’s fees (assuming every transaction is swiped and not keyed in) would be $559.47. When you subtract the 1.5% fee ($8.39), you would be able to transfer $551.08 to your bank account that evening.

Setting Up Customized Deposit Options

Merchants have flexibility in managing their deposit schedules. You can set up Same-Day Deposits (formerly called Scheduled Deposits) in Square, which will automatically transfer the funds based on your Close of Business time. Additionally, it is possible to mix deposit types, allowing you to receive funds immediately for specific transactions while opting for next business day deposits for others.

Understanding these deposit options can help streamline your business operations, ensuring timely access to funds and efficient cash flow management.