Square Lets Sellers Put More Business Bills on Their Credit Card

Businesses can now use their Square Credit Card to pay vendors that don’t accept cards, as well as those that do, Square said in a Tuesday (Aug. 11) press release.

This enhanced Bill Pay feature lets sellers pay rent, insurance, marketing expenses and other vendor expenses, regardless of whether the vendors accept cards. Square routes the money to the vendor’s choice of a direct deposit into their bank account (ACH) or a check in the mail, according to the release.

Square Bill Pay provides an alternative to solutions that come with additional costs or require small business owners to spend their cash on hand, Andrea Raj, head of product for Square Banking, said in the release.

“We built the opposite,” Raj said. “Pay vendors on time, keep cash longer, and earn the right rewards for it, all in one place and while saving on fees. That’s only possible because it’s built into the platform sellers already run their business on.”

Square also announced Tuesday that the refreshed Square Credit Card now offers unlimited 3% cash back on Square Bill Pay transactions and 1.5% cash back on all other purchases. Sellers can redeem the rewards as cash deposits into their Square Savings account, statement credit or free processing, according to the release.

The new features join the existing benefits of the Square Credit Card, which include a dynamic credit line, no personal guarantee, no annual fees, no late fees and no foreign transaction fees, per the release.

Square and parent company Block have launched several other solutions for businesses in recent months.

In June, Square Financial Services launched a deposit tier that pays a higher APY to Square sellers who maintain a daily balance of $10,000 or more in their Square Savings account.

In May, Square and Homegrown announced that they partnered on a pilot program designed to offer expansion capital through flexible financing for Square sellers that have two or more locations and are ready to open another one.

In March, Square said it had begun extending credit to more sellers after improving its underwriting models to assess the creditworthiness of those with non-standard revenue patterns, including project-based earners, seasonal operators and businesses that are new to Square.

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