Square has carved out quite a spot for itself in the world of payment processing. When it comes to accessibility, there are few rivals. With no credit checks, sign-up fees, monthly fees, or cancellation fees, and a very transparent pricing model, itâs no wonder why Square remains the go-to option for business owners who want a no-hassle choice.
In fact, itâs so easy to get started, that you can usually start taking payments immediately after setting up your Square account! That being said, it helps to get a bit familiar with the process before ringing up your first customer â and there is more than one way to do it. If you are interested in weighing your options, this post is for you.
We are mainly going to focus on taking payments with physical cards in this post, so if you have an eCommerce shop, you may want to check out ourÂ Square Online Store and eCommerce Review. If, however, you want to know how to ring up your sale and get some important details to help you choose the best options, keep reading.
To start us off, here is a short list of the ways you could accept payment with Square:
- Your device + Square Point-of-sale (POS) app + Â Square card reader
- Keying in credit card information in the Square POS app
- Square POS hardware (e.g., Square Register)
- Accessing the Square Virtual Terminal from your laptop
Below, we are going to start by explainingÂ how to accept payments with the Square Reader. After going through some different scenarios, weâll also explore Squareâs POS hardware for those of you with a physical storefront. By the end of this post, you should feel confident navigating your options and finding the best solution (or solutions) for your business processing needs.
But first, a note on Squareâs payment security.
Square & Payment Security
Right out of the gate, we need to take a quick minute to cover payment security. Itâs that important. Regardless of how you accept a payment â whether that is keying in a card, Â swiping with a magstripe reader, a dip or tap, etc. — Square provides secure and PCI compliant payment transactions. That is to say, Square is fully compliant with the latest Payment Card Industry Data Security Standard (PCI-DSS). And that also means you wonât have to pay additional PCI fees or hire a team to manage ongoing compliance, either.
This out-of-the-box payment security is just one reason Square is such a powerhouse for the millions of small business owner who trust it.
Let’s take a look at the Square reader options next.
How To Use A Square Reader For Mobile Payments
We’ll start with the obvious: the Square reader. Assuming you have already downloaded the Square app, itâs effortless to accept payment with your reader.
- Step One: Open the app on your device. You will already be at the screen you need to make a charge. No fumbling required!
- Step Two: If you have entered inventory into your Items list, find the item and click what you need. The total will automatically update.
- Step Three: Tap the Charge button when youâre ready.
- Step Four: Swipe or insert the card, or tap your connected reader. You can also manually enter the card number (keyed entry) if necessary.
- Step Five: Your customer will sign their name and the sale is complete!
Donât have a connection? Suffering from a spotty connection? Squareâs offline mode helps you avoid losing the sale. Your customerâs data is securely saved in the app and the transaction will process when you connect your device to the internet again (WiFi or cellular connection). You must reconnect within 72 hours, though, or the transaction will cancel.
Itâs really that easy. To see how Square stacks up next to other mobile credit card processors, check out our Mobile Credit Card Processing Comparison table.
Square Transaction Fees & Mobile Reader Costs
As stated at the start of the post, Square offers very transparent pricing. If you use Square Point of Sale on a smartphone or tablet with a mobile card reader, youâll pay the standard processing fee of 2.75% per swipe, dip, or tap. And keep in mind that no matter what type of card your customer hands you, Square charges the same fee per transaction. If for some reason you need to key-in the credit number, you will pay 3.5% + 15 cents for manually-entered transactions. We will revisit the types of card-not-present transactions later in the post.
Letâs talk a little more about the Square Reader, because you do have some choices that go beyond the free magstripe device. The good news is that Square readers work with nearly all Android or iOS devices running the latest updates. If you’re in doubt, Square offers a compatibility tool so you can look up your device and see for yourself.
After signing up for a new Square account, you can choose which free Square reader you would like — and they’ll ship it directly to you for free. Depending on your device needs, you can choose between the lightning adapter for iOS or the standard 3.5mm headphone jack reader. The other option you have is to shell out $49 for the Contactless + Chip reader.
The free magstripe card reader is great for getting started, but I recommend considering the upgraded Contactless + Chip Reader for improved payment security in processing. (It also offers your customers more ways to pay you.)
Square also sells a small charging dock so you can keep your contactless reader fully charged through the day. If you opt for the contactless reader, you can also purchase a specially designed Otterbox case from Square. You can slide the contactless reader on the back of the case if youâre on the go. Unfortunately for Android users, the case only fits an iPhone 7 or 7 plus, but I have a hunch there will be more options for this one when the demand grows.
Can You Use A Square Reader With Multiple Devices?
You may be wondering about the possibility of sharing a reader between different devices — or maybe even switching readers. Good news! You can do either of those things! If you have more than one device, decide to upgrade a device (or reader for that matter), need to swap a device, or hand your Square reader to a different team member for them to plug into their phone, you can do so without an issue.
Thatâs because your account is anchored to your Square POS app, not to a specific reader. When you or your team member signs into the Square POS app, transactions go into the system automatically. You can use the same reader across different accounts, too. So if you have two businesses, or you have more than one Square POS app (like Square Retail or Square Restaurants), the reader works interchangeably with those as well.
Keep in mind that when you choose your reader, you may limit your usage. For example, you can only use the lightning reader with iOS, but the standard 3.5mm headphone jack reader is compatible with multiple devices. Of course, you can always purchase more readers to suit your needs and keep up with a growing team. As long as they are signed into your Square account, all sales will be synced to your account.
How To Use Squareâs Countertop POS Systems
If you are considering how you can use Squareâs countertop POS systems to make business flow, here are your options:
Square Stand for Contactless and Chip:
When you use the Square Stand with the free Square Point of Sale (POS), you will need to bring along your own compatible iPad (most recent model) or purchase an iPad to go into your stand. The magstripe reader is built-in if you must swipe, but we recommend utilizing the Square Reader for contactless and chip payment for the latest payment security protections. The Square Stand also comes with a dock to keep the contactless reader charged and stable.
When it comes time to ring up an order, youâll complete the sale just as you would through your mobile device, as the free Square POS app is still the engine thatâs running the whole thing. The Square Stand for Contactless and Chip makes a great choice if you are looking for a more prominent, bonafide countertop POS option. It has a simplistic design with minimal cords and offers more screen real estate to find inventory and add to your sale. Â
With the Square Stand, you can run your Square POS app or the premium options created just for retail and restaurants. Find out why these might be a better option for you (and see the fee differences) by visiting our Square for Retail or Square for RestaurantsÂ reviews.
The Square Terminal is a great all-in-one choice if you want a little more portability than the Square Stand offers. You can swipe, dip, or tap credit and debit cards, and it even has a receipt printer built right in. Terminal runs the free Square POS app, so itâs easy when it comes to ringing up a sale. You can also access features such as your customer directory, reports, and inventory tools.
If you are running Square for Restaurants, you wonât have access to all of the bells and whistles, but Square Terminal does have limited compatibility with the Restaurants POS. For example, you can pull up an open ticket and settle payments right at the table â complete with a receipt! When all is said and done, The Square Terminal can hold its own as an excellent countertop solution, but itâs also lightweight enough to use as a mobile solution. And because Square POS has an offline mode built right in, you donât have to worry about losing connection. Transaction data is all saved safely with Square and ready to process when your device is back online.
They built the Square Register with both your and your customerâs ease of use in mind. Thereâs one 13.25-inch screen for you, and one for 7-inch display customers, complete with magstripe, chip card, and contactless payment processing built in! Square Register runs Square POS and supports Square Loyalty and other software add-ons. The Square Register also supports the back-end features of the premium Square for Retail software, such as the advanced reporting and inventory features, but can’t run the POS app itself.Â
Not sure what you need? Check out A Guide To Square Credit Card Readers And POS Bundles to compare and explore your options. Below, we’ll break down the cost of the hardware we just talked about, and discuss the transaction fees associated with each.
Square POS Hardware Costs & Transaction Fees
As always, Square pricing is very straightforward. Below weâve listed prices for the hardware and what it will cost you to process payments.
- Square Stand for Contactless and Chip: Â The cost for this one is $199.00. If you want to add an iPad, you can do so for $329.00. Note that the stand is only compatible with an iPad (2017, 2018), iPad Pro 9.7â, or iPad Air (1, 2). Youâll pay a flat 2.75% per swipe, dip or tap transaction at the Square Stand so long as you are running the free Square POS. Square For Restaurants and Square for Retail process at different rates — 2.6% + $0.10 for Restaurants and 2.5% + $0.10 for Retail.
- Square Terminal: To get your business a Square Terminal, youâll pay $399.00, shipping included. You can also opt to add on 20 rolls of terminal print paper for another $20.00. Your payment processing fee is 2.6% + 10Â¢ per swiped magstripe cards, swiped or inserted chip cards, and contactless payments.
- Square Register: Square Register costs $999.00 to purchase it outright. Shipping is free, and it arrives in seven business days or less. Itâs ready to start processing payments right out of the box, so thereâs no fuss when it comes to launch time. Contactless payments, swiped or inserted chip cards, and swiped magstripe cards processed through cost 2.5% + 10Â¢ fee.
If you add on specialized software, such as Square for Restaurants or Square for Retail, you will have an additional monthly charge (both starting at $60/mo). Both of these premium POS systems are geared towards specialized businesses and include features such as advanced reporting (for retail), and table mapping (for restaurants). Â
How To Accept Card-Not-Present Payments with Square POS Â
There may be some situations when you need to take a payment from your customer, and you canât swipe, dip, or tap the card. Maybe you donât have your reader with you, or you want to take an order over the phone. Whether the card is physically present or not, if you manually enter in the card information, itâs considered a card-not-present transaction.
In the next section, we will lay out the payment processing costs for such transactions. But first, letâs discover the ways you can process a card with Square if you donât have your reader (or the card) in hand.
If you log into the Square Dashboard from your computer, you can key in manual payments from your Virtual Terminal (not to be confused with the Square Terminal hardware). You wonât need additional hardware to complete the transaction. You simply go into the terminal and enter the amount, credit card information, and even add a note to describe the sale. Then you hit “Charge,” completing the transaction. You can also take âCard on Fileâ payments from the Virtual Terminal (more on that below).Â If you have a Chromebook or Apple laptop, you can connect a basic magstripe reader to swipe transactions. In that case, you’ll pay the standard swipe rate instead of the keyed entry rate.
Whenever you ring up a sale, you can also opt to save your customerâs card number on file for future use. After that, you always have the option of selecting âcard on fileâ to complete the sale. However, keep in mind that whenever you ring a card-on-file transaction later and donât swipe, dip, or tap, you have entered into âcard-not-presentâ territory and slightly higher processing rates apply.Â
Security Concerns with Card On FileÂ
The Square app only reveals the last four digits of your customerâs credit card on file and does not save CVV card data to remain PCI compliant. Any time you make a transaction with Card on File, Square automatically sends a receipt to the customer so they have a record of the transaction, to help minimize the risk of unauthorized charges.
You should never save your customerâs card data unless it is stored with PCI-compliant software (such as Square). Businesses that store customers’ payment data improperly put everyone in danger of a breach, and the company can be liable for the breach, should it occur. Small businesses are targeted by fraudsters looking for unsecured data, and it is a lot more common than you may think. If you save the card on file through Square POS or Virtual Terminal, keep in mind that Square also requires you to obtain written consent to store the card on files — the site provides a form you print off and store somewhere secure.Â Also, your customer can revoke their consent to keep their card on file with you at any time.
Manually Keying-In Credit Card Information
In addition to the Virtual Terminal included with Square, you can always opt to enter credit card information manually with the Square POS app. Because there is a higher chance of fraud when you donât capture the electronic data, itâs going to cost you a bit more to process. However, sometimes it is necessary to take these types of payments. Use your discretion with these types of transactions, and swipe, dip, or tap the card if at all possible to reduce your fees (and your chargeback risk). However, if a card is particularly worn down, the card reader is just misbehaving, or you don’t have your Square reader handy, it’s good to know you have a backup option to accept payments.Â
If you are looking for yet another workaround when it comes to processing payments, donât have your reader handy, and you don’t want to key in the amount, you always have an option to send an invoice. Your customer will get the invoice via an email right away. From there, they can open their email and follow the prompts to enter in their credit card information from their own device. This is especially good for higher-value transactions where keying in the card number might send up a red flag.Â
Check out our Square Invoices review for a more in-depth look at Square’s free software, but for now, what you need to know is that you can link your inventory to invoices, allow customers to send tips, take down payments, and even enable installment payments.
Square Keyed-Entry Transaction Fees
As we covered above, there are several scenarios in which you may want or need to key in your customerâs credit card information and more than one way to do it. Hereâs how much itâs going to cost you to process these types of payments:
- Keyed Entry Payments (Square POS Or Virtual Terminal): 3.5% + 15Â¢
- Card-On-File:Â 3.5% + 15Â¢
- Invoicing: 2.9% + 30Â¢
Is Squareâs Credit Card Processing Right For You?
Square offers several solutions for businesses at every stage. That means that if youâre a one-person shop now, you donât really have to worry about finding a new solution when you grow because Square offers so many scaleable hardware options. When it comes to taking payment at your storefront or on the go, there are many ways to go about it. And with a transparent pricing model, there are no surprises on the back end. Because Square offers an all-in-one solution with payment processing and PCI compliant security built right in, you donât need to worry about jumping through hoops to keep up with the latest global payment security regulations.
So is Square right for you? Sometimes the best way to find out is to see for yourself! ConsdierÂ setting up a Square account and playing around with the possibilities. Itâs free to set up a Square account, and there are zero commitments or contracts required.
If you are still weighing all of your options when it comes to processing, check out this Mobile Credit Card Processing Comparison table for a quick side-by-side view of some top-rated companies.
|Free App & Reader||Square eCommerce||Square for Retail||Square for Restaurants|
|Get Started||Get Started||Get Started||Get Started|
|Free, general-purpose POS software and reader for iOS and Android||Easy integration with popular platforms plus API for customization||Specialized software for more complex retail stores||Specialized software for full-service restaurants|
|Always Free||Always Free||Free Trial||Free Trial|
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