Add a custom payment method to Square POS

If your business accepts payments that do not flow through Square directly, you’ll want to add a custom payment method. Such payments methods include:

• DoorDash
• GroupOn
• PayPal
• Uber Eats
• Venmo
• Zelle

Although these payment methods are not supported directly in Square, you can configure Square to track them. This makes it easier to report and reconcile transactions later.

Understanding custom payment methods

A custom payment method is selected by your staff when a customer is prompted to pay for their purchase. Square will note the customer paid with the custom payment method, which will show up in reporting.

Advantages of custom payment methods

The key advantage is accurate data resulting in easier reconciliation. Instead of all external payments closing to “other” or cash, you know exactly how each customer paid. And if your customers tip, you’ll have an easier time in payroll because Square can track the tip information.

1. More granular reporting of how customers are paying
2. Full visibility of payments outside of Square
3. Simpler bookkeeping, reconciliation, and tip payouts
4. Visibility into consumer payment preferences

That said, there are some limitations to understand.

Limitations of custom payment methods

Square is not integrating with the external payment system. Square does not:

• Process the payment
• Move money into your bank account
• Apply Square fees
• Provide chargeback protection
• Contribute toward a loan repayment plan

It is up to your staff to verify that payment is actually received.

Best practices for a good experience

Be aware that Square does not allow you to edit the name of a custom payment method after creation. Make sure to specify the name carefully with the exact spelling and capitalization you want.

Avoid vague names like “External”. Use clear names like:

• CashApp
• DoorDash
• GroupOn
• PayPal
• Uber Eats
• Venmo
• Zelle

At the register, consider making a plaque or flyer with QR codes to opens the payment app(s) with the correct recipient. Many third-party payment systems like Venmo have an option to generate a QR code you can use. In Zelle, you can create a user-friendly tag name instead of requiring the person to search by email or phone number. Check the payment platform for details.

Lastly, remember that Square does not verify payment. Train your staff on how to verify payment before closing the transaction.

How to add a custom payment method to Square using the website

References

• Track external transactions with Custom Payment Methods | Square Support Center – A Custom Payment Method is a custom named payment method you can use to track orders received from outside payment sources via Square. For example, third-party ordering and delivery, non-Square gift cards, and memberships.) All transactions recorded in the Square Point of Sale app are included in reporting, giving you a comprehensive view of your sales and transactions through Square.