How to Use Square (2026): Setup, Fees, POS Hardware & Alternatives

Whether you run a brick-and-mortar store, an online shop, or need a mobile payment solution, follow this four-step guide to start running your business with Square.

Square quick setup

Getting started with Square is quick and straightforward. You can create an account, set up your POS, and begin accepting payments in just a few steps. Follow this guide to get your business up and running.

Step 1: Open a Square account

Setting up your Square account is the first step to accepting payments and managing your business. The process only takes a few minutes and requires basic business information.

• Create an account: Visit the Square website or download the Square app to create a free account. You’ll need to provide basic information, including your business name, email address, and a secure password.
• Verify your business: Complete the identity verification process by providing your personal and business details, including your EIN or Social Security number for tax purposes.
• Link your bank account: Connect your business bank account to Square to ensure you receive deposits from your sales. Square offers next-day deposits as the standard option, or you can choose instant transfers for a fee.
• Customize your settings: Once your account is created, you can proceed with customizing Square according to your business profile. This includes completing your location information and sales tax settings, setting up your reporting preferences, and customizing your receipts.

Read more: What is Square? 

Step 2: Set up your POS app

The Square app is your all-in-one tool for managing transactions, tracking sales, and accessing business insights. Because it’s app-based, you can access your account from anywhere.

To set up your Square POS app, you will need to: 

• Download and log in: Install the Square app on your iOS or Android device and sign in using your account credentials.
• Add items and services: Open the app, go to “Items,” and select “Create Item.” Enter the product name, price, category, and variations. Items will appear in your checkout screen for quick access. You can also upload items in bulk via CSV from the Square Dashboard.

• Set up your payment methods: From the dashboard, go to Settings > Checkout or Payment Methods. Enable options such as credit/debit cards, gift cards, mobile wallets (Apple Pay, Google Pay), and Afterpay.

To add Afterpay as a payment method in Square, go to your Square Dashboard, click on Payments, and select Afterpay under the “Buy Now, Pay Later” section. Follow the prompts to enable Afterpay for eligible online or in-person sales. Once activated, it will automatically appear as a payment option at checkout for qualifying transactions within the supported amount range.

Step 3: Choose how you want to get paid

During sign-up, Square asks how you plan to sell, whether in person, online, via invoice, or over the phone, to tailor your setup. Your selections automatically enable relevant features in your account.

You can accept payments through:

• In person: Using the Square app with compatible POS hardware
• Online: Through checkout pages, payment links, or a hosted store
• Invoices: Digital invoices with built-in payment links
• Virtual terminal: Manually entered card payments

Each channel may require additional setup, but all are managed from your Square Dashboard.

Step 4: Ring up sales

Square accepts all major credit and debit cards, including Visa, MasterCard, American Express, and Discover. It also supports modern payment methods such as: 

• Mobile wallets: Like Apple Pay, Google Pay, Cash App, and Samsung Pay
• Pay later: Via AfterPay
• ACH: For direct bank-to-bank payments

To process a sale:

1. Open the Square app and tap Checkout
2. Add items from your library or enter a custom amount
3. Apply discounts or add customer details (optional)
4. Tap Charge and select a payment method
5. Complete the transaction and send a digital or printed receipt

(Optional) Add Square tools

To enhance your Square POS system, you can explore a range of add-on features in the Square App Marketplace or directly through your Square Dashboard. These include tools for team management, customer loyalty, marketing, inventory, and more. Once you select an add-on, you can enable it with just a few clicks and configure its settings to fit your business needs. After activation, the feature integrates seamlessly with your POS, appearing as new tabs or functions in the app interface.

Square hardware guide

Square offers a range of POS hardware designed to help businesses accept payments in-store, on the go, or at the counter. Whether you’re a mobile seller or running a full retail setup, Square’s devices are built for quick setup and seamless integration with its POS software.

Square hardware options

Square’s hardware lineup includes:

• Mobile card readers: Compact and affordable, ideal for businesses that need to accept payments anywhere. These support tap, dip, and swipe payments via a smartphone or tablet.
• Square Handheld: A portable POS device with a built-in barcode scanner, designed for inventory management and fast, on-the-go checkout, especially useful for retail and stockroom operations.
• Square Terminal: A handheld, all-in-one device with a built-in card reader and receipt printer, perfect for countertop or mobile use.
• Square Register: A full POS system with a dual-screen setup for both staff and customers, best suited for retail stores and high-volume environments.
• Square Stand: Turns an iPad into a complete POS system with a built-in card reader and rotating display for customer signatures.

The Square Reader for magstripe is free for every Square account.

The Square Reader for contactless and chip allows businesses to receive payments via dip or tap.

The Square Terminal is an all-in-one payment device that allows you to accept payments and print receipts from anywhere in your store or on the go.

Square Handheld features a product barcode scanner for quick, on-the-go checkout.

The Square Register is a fully integrated POS solution with a customer-facing display for an enhanced checkout experience.

Setting up your Square hardware

Getting started with Square hardware is straightforward. Most devices come preloaded with the Square POS app, so you can begin accepting payments quickly after setup.

To get your device ready:

1. Install the hardware: Follow the included instructions to assemble your device and connect any accessories.
2. Charge the device: Ensure your hardware is fully charged before first use.
3. Connect to your network: Use Wi-Fi or Ethernet (for supported devices) to connect your hardware to the internet.
4. Sign in to your account: Log in using your Square credentials to sync your items, settings, and sales data.
5. Pair accessories (if needed): Connect barcode scanners, receipt printers, or cash drawers via Bluetooth or USB.
6. Test transactions: Run a test payment to confirm everything is working properly.

Choosing the right Square hardware

The best hardware for your business depends on how and where you sell:

As your business grows, you can mix and match Square devices across locations while managing everything from a single dashboard.

Square Online and ecommerce

Square provides built-in tools for accepting payments online, whether through an online store, payment links, invoices, or manual entry. These features are managed from your Square Dashboard and can be customized to fit your business needs.

Set up your online store 

Click on “Online” from the dashboard menu to begin the setup process. You’ll be prompted to choose the type of site you want, whether it’s for retail, food and beverage, or services, and then select a design template. 

From there, you can customize the layout, colors, and fonts to match your brand. You can easily import products from your existing Square item library or add new ones manually. Next, configure key features like payment methods, shipping or local pickup options, and tax settings.

Set up ecommerce checkout

To create an ecommerce checkout with Square, navigate to your Square Online Dashboard and select Settings > Checkout. From there, you can customize the checkout page layout, select accepted payment methods such as credit cards and PayPal, and configure shipping options and rates.

Also read: Ecommerce Payment Processing: The Complete Guide

Create payment links

From the Online Checkout section, click on “Create Checkout Link” and choose the type of transaction you want, such as collecting a fixed amount, accepting donations, or selling a specific item. Enter the necessary details, such as item name, price, and optional customer information fields. You can customize the link with your business branding and set optional features, such as tipping or requiring contact information. Once the link is generated, you can share it via email, text, social media, or embed it on your website.

Send invoices

Square’s digital invoice comes embedded with a payment link that allows customers to pay remotely for goods and services. To accept credit card payments via invoice on Square, use your template to create an invoice by adding the customer’s and the transaction information. Once received, the customer can click on the Pay button, where they can choose from your available payment methods to complete the payment.

Use the virtual terminal

A virtual terminal is different because it allows you to process payments on behalf of your customers. Once you have received a payment request with the customer’s payment details, navigate to Square’s virtual terminal. Choose from either a quick charge or an itemized sale, then fill in the customer’s information and purchase order details. Once you’ve verified that all the details are correct, enter the customer’s credit card information to complete the transaction.

Learn more: How to Accept Payments Online

Square pricing and fees

In my five-plus years of reviewing POS systems and payment processors, I’ve found that Square doesn’t offer the lowest transaction fees. While its flat-rate pricing is simple and predictable, it may not be the most cost-effective option for all businesses.

Square Payments processing fees

For small businesses, Square will charge the following rates per transaction:

• In-person transactions: 2.6% + $0.15
• Online transactions: 2.9% + $0.30
• Manually keyed-in transactions: 3.5% + $0.15
• Invoices/payment links: 3.3% + $0.30
• ACH payments: 1%, with a minimum of $1 per transaction
• BNPL transactions (Afterpay): 6% + $0.30

Tips to minimize fees

That said, there are ways to keep costs manageable. Here are some practical tips to reduce your Square processing fees:

• Encourage card-present transactions: Swiping, dipping, or tapping a card in person typically incurs lower fees than manually entering card details.
• Minimize keyed-in payments: Stick to Square’s readers and POS devices to avoid higher fees from virtual terminals.
• Set minimum purchase amounts for cards: This helps offset fixed per-transaction fees by encouraging higher average order values.
• Consolidate transactions when possible: Bundling multiple small purchases into a single transaction reduces the impact of per-transaction fees.
• Apply for Square’s volume discount program: If your business processes over $250,000 in annual card sales with an average ticket size above $15, you may qualify for custom rates. Reach out to Square to submit an application for volume-based pricing.

Is Square worth the cost?

Square’s pricing is best suited for small businesses that value simplicity and predictable costs over the lowest possible rates. While it may be more expensive than interchange-plus providers at higher volumes, its all-in-one ecosystem, free POS software, and ease of use can offset the difference, especially for new or growing businesses.

Square troubleshooting tips

While Square is easy to use, occasional issues can arise. Here are some common problems and how to handle them:

Account holds or fund freezes

Some users experience account holds or delayed deposits, especially for transactions flagged as high risk. To minimize this:

• Ensure your business information is complete and up to date
• Avoid sudden spikes in transaction volume or unusually large payments
• Respond promptly to any verification requests from Square

If your account is placed on hold, contact Square support and provide any requested documentation as soon as possible to speed up the review process.

Limited customer support availability

Square’s free customer support is not available 24/7, which can be challenging if issues arise outside business hours.

• Check Square’s Help Center for self-service troubleshooting guides
• Use the Square Dashboard to manage common issues without needing support
• Plan ahead for high-volume periods in case assistance is delayed

Payment processing issues

Occasionally, you may encounter failed or delayed transactions due to connectivity or setup issues. Here are some steps to try if these issues occur:

• Check your internet connection: Ensure your device is connected to a stable Wi-Fi or data network
• Verify payment settings: Confirm that your accepted payment methods are enabled in the dashboard
• Update your app or device: Make sure your Square app and hardware firmware are up to date
• Retry the transaction: If a payment fails, reattempt the transaction or try an alternative payment method

If issues persist, consult Square’s support resources or contact their support team for further assistance.

Square alternatives and when to switch

Square is an excellent all-in-one payment solution, especially for small businesses and startups. However, it’s not always the best fit for every business model.

If Square is not the right fit for your business needs, consider exploring alternative payment processors that better align with your pricing, support, or risk requirements.

When to consider switching from Square

Popular Square alternatives to consider

Depending on your needs, you may want to explore:

Learn more: Square alternatives

Can you run and scale your business with Square?

We’ve seen how easy it is to use Square to process credit card payments. As an all-in-one POS solution, it’s clear that small businesses can quickly start and run their operations on the platform. But can Square grow with your business?

The short answer is yes. While Square is most popular among new and small business owners, it offers a modular ecosystem that scales with your needs.

Whether you’re expanding to multiple locations or planning for long-term growth, here’s how Square supports scaling:

• Pricing that grows with you: Square’s transparent, usage-based pricing works well for businesses starting out. As you grow, you may qualify for custom rates and volume discounts, helping offset flat-rate costs.
• Scalable features across business sizes: Start with essentials like POS, inventory, and invoicing, then add advanced tools such as team management, multi-location inventory, loyalty programs, subscriptions, and marketing automation. Square also offers industry-specific solutions like Square for Restaurants and Square for Retail.
• Seamless integrations: Square integrates with over 200 third-party apps, including QuickBooks, WooCommerce, Wix, and Mailchimp. This allows you to expand your tech stack without disrupting core operations.
• Developer tools for customization: Businesses needing more flexibility can use Square’s APIs and SDKs to build custom workflows, embedded checkout experiences, or integrations with proprietary systems.

Frequently asked questions (FAQs)