How to Use Square to Process Credit Cards & Run Your Business

Did you know? Square is our top-recommended merchant service for small businesses.

If you decide to accept in-person credit card payments, you’ll need a mobile card reader in order to accept tap, dip, and swipe payments. Depending on the card reader, you’ll need to either plug it into your phone or connect it via Bluetooth.

• For swiped transactions: Plug the card reader into the headset jack or lightning connector.
• For tapped and dipped transactions: Confirm that your card reader is connected to your device via Bluetooth.

Square Mobile Card Reader Options

If you’ve created an item library, select items for the transaction. The items will be displayed along with the respective prices and relevant sales tax. Or, you can manually enter a transaction amount. Hit the “Checkout” button on the left side of your screen to log your sale.

When you’re ready to accept payment, hit the “Charge” button. The mobile app will provide you with multiple payment method options:

• Swiping, tapping, or dipping a card through the card reader
• Cash
• Keyed-in credit/debit card
• Keyed-in gift card
• Card-on-file
• Invoice
• Send payment link
• Pay with QR codes
• Check or another miscellaneous payment method
• Tap to pay

Below is a guide on how to use a Square card reader.

To Process Square Offline Payments

In the event that you lose internet connection, the Square app can be temporarily set to accept offline payments for 24 hours. Here’s how to enable offline payments:

• Tap Menu > More from the navigation bar.
• Tap Settings > Checkout > Offline payments.
• Toggle Allow Offline payments.
• Review the information and then tap Allow.
• Enter a per-transaction limit amount.
• To disable, go to Menu > More > Settings > Checkout > Offline payments > turn off.

Note that the 24-hour window includes uploading the payment data of your online transactions. The Square app will not be able to collect the payment if this is not done before the 24-hour window expires.

To Process With Square Tap to Pay

If you have an iPhone 11 or later, you can enable tap to pay directly on your phone. Like the other payment functions, tap to pay is a setting available in the Square POS app. If your phone has the ability to accept tap-to-pay payments, Square will prompt you to enable the tap to pay on iPhone function when you process your first payment.

You enter the sale the same way you would any mobile sale, and then choose the Tap to Pay on iPhone option on the payment screen. Your customer can tap the base of your phone with their tap-enabled card or use their own phone’s mobile wallet to pay.

Customers can enter their phone number or email address on the confirmation screen if they want a digital receipt.

After every successful payment, you can choose between issuing a digital or printed receipt.

To Issue Digital Receipts

• Enable digital receipts on the Square app, click More > Settings > Checkout > Signature and Receipt.
• Toggle Skip Receipt either on or off.
• Authorize the payment by processing your customer’s card or recording another form of tender on the payment screen.
• Ask your customer to enter their phone number or email address on the receipt screen.
• Tap Send.

To Issue Printed Receipts

• Authorize the transaction by swiping your customer’s card or recording another form of tender on the payment screen.
• If you have in-person order tickets turned on, a prompt to enter a customer name or order number will appear, or the ticket number will be automatically assigned.
• Tap Print Receipt.
• To print a gift receipt (for iOS devices), tap Transactions from the navigation bar at the bottom of the screen.
• Locate and tap the payment > Print Gift Receipt.

You can certainly use a smartphone running the Square POS app to accept in-store payments, but most brick-and-mortar Square users opt for sturdier POS hardware. Square offers everything from simple iPad stands with peripheral card readers to hardware kits that include a checkout register with a cash drawer and a receipt printer.

Square In-Store Hardware Options

You can also choose from Square’s different hardware kits designed for retail and restaurants.

Every Square POS hardware comes with a built-in Square app. Log in to your account and begin setting up your store. You will need to customize your product and account settings, then choose among Square’s available add-ons to complete your business management tools.

For detailed step-by-step instructions, visit our Square setup guide.

Logging your sale on Square’s POS software is similar to using the mobile POS app; only the screen is bigger, it comes with more functionalities, and the card terminals are built into the hardware.

Each Square hardware for storefronts comes with built-in card readers. The steps on how to use Square credit card processing are similar, with slight setup differences depending on which hardware you are using. Just as with the mobile app, you then have the option to text, email, or print a receipt.

To Process Payments with the Square Terminal

The Square Terminal is highly versatile hardware with built-in POS software, card reader, and printer that fits in the palm of your hand. You can use it independently as a standalone POS or connect it with another device with POS software so it serves as a customer display for tableside and curbside sales. Read our Square Terminal review.

• Go to the Checkout tab.
• Enter a custom amount or add products from your Item Library.
• Tap Charge.
  • If paying by tap For Apple Pay, Google Pay, or contactless device : Ask the customer to hold their device or card near the contactless symbol on the Square Terminal.
  • If paying by dip For EMV chip cards : Insert the chip card into the chip card slot and wait until the Square Terminal prompts to remove the card.
  • If paying by swipe Magnetic stripe cards : Swipe the magnetic stripe cards through the magstripe reader.

To Process Payments with the Square Stand/Square Mount

The Square Terminal is a Square hardware designed for businesses that prefer to use their iPads for their POS systems. It comes with a built-in EMV chip and contactless card reader, plus an option to connect a Square magstripe reader for swiped payments. It offers two configurations—stand and mount—to match your business type. Read our Square Stand review.

• Tap or scan products with a barcode to add items to your checkout basket.
• Alternatively, enter a custom sale amount with the keypad.
• Add a description or modification details, change quantity, and apply tax and save.
• Tap Charge to check out.
  • With a Square Stand: Swivel the Square Stand 180 degrees to face the customer. The screen will prompt the customer through the payment process by inserting their card into the chip reader or tapping their contactless card or mobile device near the flashing contactless icon.
  • With a Square Mount: The checkout screen will prompt the user through the payment process by inserting the card into the chip reader or tapping the contactless card or mobile device near the flashing contactless icon.
• If signature collection is enabled Option available for transactions $25 and above , the customer will be able to sign with their finger.
• The customer will be prompted to leave a tip on the signature screen if tipping is enabled.
  • If the transaction is an online or over-the-phone order, write “Internet Order” or “Phone Auth” on the signature screen.
• Specify the receipt delivery method.

Note that offline payment processing is also available.

To Process Payments with the Square Register

Unlike Square Stand/Mount, the Square Register is a POS hardware that comes with a built-in screen and separate customer display. The swipe payment functionality is also embedded into the hardware instead of connecting the mobile card reader. Read our Square Register review.

• Tap or scan products with a barcode to add items to your checkout basket.
• Alternatively, enter a custom sale amount with the keypad.
• Add a description or modification details, change quantity, and apply tax and save.
• Tap Charge to check out and position the customer display in front of the customer.
  • For tapped payments: The customer holds their contactless device or card near the lighted contactless logo.
  • For EMV chip (dip) payments: The customer inserts their chip card into the chip card slot on the customer display.
  • For swiped payments: The customer swipes the magnetic-stripe side of their card through the magstripe reader on the customer display.

Like the Square Stand/Mount, the Square Register can also process payments offline.

Square generates your online store from your existing inventory and shows a site preview on the right side of the screen. (Source: Square)

The Square Online Checkout allows users to generate payment links or buttons, which merchants can add to almost any online platform, such as emails, blogs, and social media sites.

Once customers click on the payment links/buttons they are taken to a checkout page, which users can customize and track until payments are completed. This is the same feature used in Square’s Buy Now, Pay Later app, Afterpay.

• From the Square Dashboard, go to Online Checkout.
• Choose “Create Link/Button.”
• Under Link Purpose, choose “Collect a Payment.”
• Enter a name for your link.
• Enter the amount to be collected (if any).
• Select “Add Image” if you want to add one.
• Enter “Frequency” if prompted (used for recurring payments).
• Select “Create Link.”
• Select “Copy Link.”
• Track the sales from checkout links from Square Dashboard> Online Checkout Settings> General> Select Primary Location.

Note that only one location can be tracked per payment. You can manage all your active payment links, buttons, and QR codes from the Item Library of your online Square dashboard.

You can use Square as your online payment processor for other ecommerce platforms. If online sales are your focus, these ecommerce platforms offer a stronger set of sales features than the free Square Online store. Square doesn’t charge a fee to integrate payment processing into these platforms (you just pay payment processing fees).

The following online platforms are compatible with Square:

• Weebly
• Wix
• BigCommerce
• GoDaddy
• Ecwid
• 3dcart
• WooCommerce
• Drupal Commerce
• Magento
• Zen Cart
• OpenCart
• nopCommerce
• Miva
• BentoBox
• WP EasyCart
• XY Retail

A few platforms can fully integrate inventory, sales, and customer tracking data with Square—a major plus if you sell online, in-store, and through mobile.

To use Square with one of these ecommerce platforms, you’ll need to do the following:

• Open your free Square account.
• Choose your ecommerce platform.
• Connect it to Square using the platform’s built-in integration app.
• Build your online store.

Detailed steps vary depending on your ecommerce website host; you can find them on Square’s support website. For more information on accepting payments with Square Online, read our step-by-step guide on how to set up a free Square Online store.

By default, you can manually key in your customer’s payment details, but you also have the option to connect a Square Terminal or even a mobile card reader if you would like the option to accept in-person payments. If you are using a Mac, Square also has Square Charge—a desktop app, which you can download and install on your device.

Visit Square Charge

You can either choose Quick Charge to add a custom amount or click on Itemized Sale to choose from your item library. Then, add an optional note to the sale. If you are selling to an existing customer, pull the customer data from your Customer Directory or enter it manually for new customers.

Once all the details are added, specify the payment method under “Payment Details.” Add the customer’s payment details (including CVV and billing ZIP code). Then, click “Charge.”

Alternatively, you can guide your customer through the in-person payment process. The steps will depend on the Square hardware that you have connected.

For remote transactions, your customer will receive a receipt for their purchase via email if the payment is successful. Alternatively, you can print a paper receipt if you are using the Square Virtual Terminal.

Manage invoices through Square Dashboard or the Square Invoices app. (Source: Square)

Note that card-on-file payments have a higher processing fee. So, it’s generally better to let customers complete the payment details themselves. Read our Square Invoices review for an in-depth look at this software.

The Square Dashboard provides a complete set of business management and back-office tools on a single platform. (Source: Square)

The Square Dashboard for POS app allows merchants to run their business from a mobile device. (Source: Square)

The Square KDS provides restaurants with a versatile order management system for both in-house and online platforms. (Source: Square)

If you’re ready to get started, read our Square POS guide for step-by-step instructions on setting up your account and using its POS features.