Zeller vs Square: which is better for your small business?

In the past couple of years, the companies have added more products and features to their repertoire.

In fact, they’re now both leading EFTPOS companies in Australia because:

• it’s easy to be their customers
• fees are competitive
• they have tons of useful services and payment tools
• it’s quick to sign up with them

Still, each company has its strengths and weaknesses.

Companies with links to each other

American Square was launched over a decade ago by Twitter-founder Jack Dorsey, while Zeller is an Australian company by Ben Pfisterer who used to lead Square in Australia. You can tell, as Zeller shares Square’s values of accessible, easy features and affordability.

EFTPOS terminals: Zeller’s are ace, Square has more choice

In all honesty, Square and Zeller each have worthwhile advantages when it comes to their EFTPOS products – let’s see how.

First off, Zeller only offers two card machines:

• Zeller Terminal 1: Standalone, with receipt printer and simple payment software
• Zeller Terminal 2: Freestanding, with POS and payment software

In contrast, Square has more EFTPOS machines, if checkout registers are included:

• Square Reader: Tiny card reader that works with a phone or tablet app
• Square Terminal: Freestanding WiFi terminal with on-screen POS software
• Square Stand: iPad holder with card readers built in
• Square Register: All-in-one tablet register with detachable card terminal
• Square Kiosk: Self-ordering checkout tablet with card readers built in

Inevitably, you can rely on Square to offer complete checkout solutions directly, if not integrating with external POS systems (a possibility). With Zeller, you only have the card machines, but can still integrate with external POS systems to build any type of checkout.

Zeller’s complete EFTPOS packages are a simpler solution overall

We like Zeller’s standalone touchscreen terminals the most as a simple, out-of-the-box payment solution. They come in a box with a business debit Mastercard linked to an online account.

The terminals are unique, portable touchscreen devices with a day-long battery life. They accept contactless and chip card payments through WiFi, but if you purchase a SIM card (not included), they work anywhere via 4G.

Zeller Terminal 2 has an impressive design with a pleasing, user-friendly POS app installed.

What about the software and receipt printing? That’s where the machines differ most.

Zeller Terminal 1 is a standard smart POS terminal with a built-in receipt printer and basic card payment software, plus a few more functions to enhance it. This includes tipping, split payments, surcharging and your very own screensaver to impress at the checkout.

Zeller Terminal 2, on the other hand, has no receipt printer, but comes with ‘POS Lite’ software that has a product library, discounts, modifiers and sales analytics.

Photo: Zeller

The original Zeller Terminal is a popular EFTPOS machine that works independently.

Square’s card machines are smaller, more adaptable

Although Square doesn’t come with a business account and card (yet), their terminals are smaller and connected with a broad payment platform with many features to run a business.

Pocketable Square Reader only works when connected with an app on your smartphone or tablet. The apps lets you create itemised transactions with products or amounts and connects with the card reader over Bluetooth to process chip and contactless cards.

Square Terminal, in contrast, is a mix between Zeller Terminal 1 and 2. It has a large touchscreen with a receipt printer (like Zeller Terminal 1) and POS features (like Zeller Terminal 2), but arguably comes with more point of sales features than Zeller, because it adapts to Square’s specialised POS systems.

Photo: Mobile Transaction

Square Reader fits in your palm.

Photo: Mobile Transaction

Square Terminal has a big touchscreen.

However, Square Terminal only works with WiFi, not mobile networks – so Zeller has that edge over it.

There’s also a complete checkout bundle called Square Register with a tablet card reader attached and large touchscreen display that only works with Square POS systems. This is a classy piece of equipment that we loved using in our tests, and it only needs a receipt printer and cash drawer – if cash acceptance and paper receipts are required.

Square Stand is an alternative register setup, where you place an iPad inside for the POS software. It has built-in card reading capabilities so you don’t need a separate EFTPOS reader. The latest Square Kiosk is also one of the most affordable self-ordering checkouts merchants can get.

Surcharging available with both

Zeller’s “zero-cost” EFTPOS feature allows merchants to pass on transaction fees. Square also has a surcharge function, plus an optional setting to automatically turn on surcharging on weekends only.

Photo: Zeller

Zeller gives you a business e-account.

Alternatively, Zeller can settle EFTPOS transactions directly in your Australian bank account the next business day.

Both Square and Zeller allow you to monitor transactions remotely from an online dashboard. In Zeller’s case, this is also where you manage the transactions account, and spending controls if you opt for corporate expense cards for employees.

Square has many more options to filter and customise reports to analyse sales, products sold, staff performance and more. And it connects with major accounting platforms like Xero, QuickBooks and MYOB and many other apps for e.g. marketing, booking systems and delivery services.

Zeller integrates with Xero accounting software, so sales and analytics are not limited to Zeller’s own basic reports.

Photo: Mobile Transaction

Square Register with French software.

Business loans, savings and expense management

Zeller has an edge over Square with its business Mastercard debit card, optional business savings account and corporate cards to make it easier to allocate expenses among staff.

If you’re a newly started business, Zeller could therefore save you time with the business account and expense management sorted at the same time of sign-up.

Square has a different financial edge: business loans. Square Loans are actually cash advances, which are not like conventional bank loans. The maximum loan amount is based on your Square card sales (no outside sales history is considered), transactions frequency and type of business.

A fixed pay-back percentage is then calculated, which included a fixed loan fee, and this will then be deducted from your sales through Square until it is fully repaid. This way, the speed of your repayment is determined by your sale volume. No interest or other charges are added to the cost of the loan.

Service and reviews: more support with Zeller

What about customer service? Zeller offers a helpline and email support every day of the week between 9 AM – 1 AM Australian Eastern Time (AET). Square only has customer support via email and phone on business days between 9 AM – 5 PM (AET).

Both companies offer a help section online where you can find answers to many questions, though Square’s help guides are more comprehensive.

Since day one of dealing with Zeller, we have had a positive experience of their service. They take small businesses seriously and have therefore received lots of positive reviews online. A few negative user reviews relate to issues during onboarding, where the application needed more documents or wasn’t accepted.

Similarly, Square has received lots of positive reviews from small businesses about the ease of use, simplicity and convenience of the products. A few negative reviews highlight that not all mobile devices work with Square Reader, so you should check in advance that it works with your setup.