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

Square credit card processing offers an affordable, easy, and immediate way of accepting card payments. Square comes with a suite of free business management tools like customer directories, an online store, inventory tracking, and customer feedback collection. Learning how to use Square means you can get the most out of Square’s free tools.

Square’s credit card processing gives you a variety of transaction options at affordable prices, along with a full management toolkit including a free point-of-sale app. Plus, Square has tons of other software add-ons like email marketing and loyalty programs. Visit Square to get started with a free account and mobile card reader.

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How to Use Square Credit Card Processing

Square lets businesses accept credit card payments via the mobile point-of-sale (POS) app, in-store through a traditional point-of-sale setup, via an online store, through a virtual terminal for phone or keyed-in payments, and through invoices. The first step in using Square credit card processing is signing up for a free account.

After entering some basic information, including an email address and password, you will select how you want to use Square to accept credit card payments. Then, you’ll confirm your identity and link your bank account to finish creating your free Square account. Unlike traditional merchant accounts, Square does not require an application or credit check. Once your account is set up, you’re ready to learn how to use Square credit card processing.

How to Use Square Mobile Payments

To use Square to accept mobile payments, you’ll need to download the free Square point-of-sale (POS) app on an Apple or Android smartphone or tablet. When you sign up for your free Square account, you can choose to have a free magstripe card reader mailed to you. You can also purchase other card readers to accept chip and contactless card payments, or key-in the card number to process mobile transactions.

Setting up a POS system with Square is easy, and once you have your free account, download the mobile POS app. Then, create your inventory items with pricing and tax settings. These can be added individually through the POS app, or uploaded in bulk through your Square dashboard, which you can access through Square’s website. Any products or settings that you add or change in the POS app will be synced to the dashboard, and anything you change in Square dashboard will be automatically synced with Square POS app.

To use Square to process mobile payments, follow these steps:

1. Open the Square POS app on your phone or tablet.
2. Connect the Square card reader to your phone or tablet.
3. Type in a charge amount or select an inventory item.
4. Swipe (or manually key in) the customer’s credit card.
5. Have the customer sign the screen with their finger.
6. Hit Done to complete the sale.
7. Enter the customer’s email or mobile number to send a receipt (optional).

Use Square Mobile Payments to Run Your Business

Square’s mobile POS app is a very powerful sales and inventory management tool that seamlessly ties into your online Square dashboard. With it, you can maintain many aspects of your business using just your smartphone or tablet, such as:

• Manage inventory: You can add items to your Square inventory list, track your quantities in stock, and even record key details like wholesale costs. When you make a sale, Square automatically reduces item inventory levels so your stock numbers are always correct.
• Track sales: Every mobile sale is tracked in detail, and you can access sales reports to help you track growth and make key business decisions. Plus, if you sell via other methods, like online or in-store, all of your sales tie together seamlessly in one system.
• Manage customers: Square’s mobile app lets you enter and track your customer data, such as email addresses and purchase history, so you can provide better service or grow your business via email marketing.

What It Costs to Use Square Mobile Payments

Square’s mobile credit card processing has no monthly fees. Each swiped mobile transaction has the same flat-rate fee of 2.75%. This means your costs are easy to understand and predict; fees don’t fluctuate with different card types or transaction amounts.

Square also comes with a free magstripe card reader with your account, and your only ongoing costs are your credit card processing fees. You can buy a more advanced card reader to accept chip cards and contactless payments if you wish.

Square mobile payment costs include:

• Setup and monthly fees: $0
• Cancellation fees: $0
• Square mobile POS app: $0
• Magstripe reader: Free (additional $10 each)
• Chip and contactless card reader (optional): $49
• Swipe, tap, and chip processing fee: 2.75%
• Keyed-in processing fee: 3.5% plus 15 cents per transaction

Note: Square has recently changed its flat-rate fee of 2.75% to 2.6% + 10 cents per transaction. We will update the pricing and our ranking of providers in the next update of this article.

How to Use Square In-store Payments

Square’s powerful, free POS software can be paired with a checkout register for in-store sales. While you can use the mobile readers covered above for in-store sales, most retail stores and eateries prefer using a checkout register with a cash drawer and receipt printer.

Using Square for in-store payments is very similar to using Square for mobile payments. The POS app and basic functionality are all the same. However, you can add extra hardware and software features to build out a more complete system.

In order to use Square to accept in-store credit card payments, you need to:

1. Set up a free Square account: Signup takes just a few minutes and it’s completely free.
2. Choose a checkout register: Options include a Square Stand with iPad and card reader and the new all-in-one Square Register.
3. Add peripherals: Cash drawers, receipt printers, barcode scanners, and mobile card readers can be added as needed.
4. Set up your free Square POS software: Add inventory items, tax rates, and other key information needed to create sales, just as you would for mobile sales.

Since Square’s retail POS lets you accept payments in many ways, once you have the above in place, you can complete in-store sales any way you wish:

• Standard checkout sales: Use the Square POS register to physically process cards and print receipts.
• Phoned-in orders: Key in payments into your POS screen for prepaid deliveries or pick-up orders.
• Combine with mobile sales: Complete sales on your shop floor or at dining tables using a mobile card reader with a smartphone or tablet.

Use Square POS to Run Your In-store Business

The best part about using Square to run your shop is that everything is seamlessly connected and fully integrated from day one. You never have to struggle to combine different store management software or register hardware products because Square ties everything you need together within one tidy system and service.

Square POS includes:

• Reliable checkout hardware and card readers
• Payment processing and refunds
• Customer tracking and management
• Sales tracking
• Inventory management
• Employee time tracking
• Business reporting
• Appointments booking
• Email marketing*
• Customer loyalty program*
• Payroll services*

*Square’s advanced management features can be added for low monthly fees

Costs to Use Square Payments for In-store Sales

Your Square account and basic POS software are free, but there are some hardware costs if you want to set up a physical register. Businesses can also choose to add on more advanced POS or business management features.

Square payment processing costs for in-store sales include:

• Setup and monthly fees: $0
• Cancellation fees: $0
• In-person and mobile card payments: 2.75%*
• Keyed-in and invoice payments: 3.5% plus 15 cents per transaction

*Lower rates available with Square Register or Square Terminal

Note: Square has recently changed its flat-rate fee of 2.75% to 2.6% + 10 cents per transaction. We will update the pricing and our ranking of providers in the next update of this article.

Square software and POS costs for in-store sales include:

• Square POS: $0 free to download and use
• Square Retail: $60 optional advanced POS system for retail stores
• Square Restaurants: $60 optional advanced POS system for restaurants
• Square Loyalty: From $45 per month
• Square Marketing: From $15 per month

Square hardware costs for in-store sales include:

• Magstripe card reader: First reader free, additional $10
• Chip card reader: $49
• iPad stand: $199
• Square Register: $999 or $49 per month for 24 months
• Square Terminal: $399 or $37 per month for 12 months

How to Use Square Online Payments

Square makes it easy to expand your existing business into online sales or launch a completely new business online. You have two options for using Square for online sales:

1. Use Square online store feature: Every free Square account includes a free online store that integrates directly with your existing Square inventory list. This is the fastest, easiest, and cheapest way for Square users to start selling online.
2. Use Square Payments with top ecommerce platforms: Top ecommerce platforms, including BigCommerce, integrate with Square if you need more online selling features than the free Square online store offers.

How to Use Square Online Store

If you already use Square and have inventory items set up, you can quickly launch a free Square online store to sell some or all of your existing products online. In addition to the free online store, Square has a few paid ecommerce plans that have more advanced features.

If you’re new to Square, here are three things you’ll need to do to launch a free Square online store:

1. Open a free Square account.
2. Enter products into your Square inventory, with good product photos and product descriptions.
3. Decide on a domain name for your website (you’ll create this during your Square online store setup).

How to Use Square With Other Ecommerce Platforms

You can use Square as your online payment processor for other ecommerce platforms like Shopify, BigCommerce, WooCommerce, and Ecwid. If online sales are your focus, these platforms offer a stronger set of online sales features than the free Square online store. These platforms charge monthly fees, but Square charges you nothing more to go this route (you just pay credit card processing fees).

A few platforms, like BigCommerce, fully integrate their inventory, sales, and customer tracking data with Square. This can be a major plus if you sell online, in-store, and via mobile. This integration lets you conveniently manage all of your sales functions within Square.

To use Square with one of these ecommerce platforms, you need to:

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

Use Square to Manage Your Online Business

If you use Square’s free online store feature or an integrated ecommerce store, you’ll be able to manage online orders right from your Square dashboard or POS screen.

Square’s free online store comes with many features, including:

• Automated, secure online payment processing
• Customer tracking and management
• Inventory management for both online and in-store sales
• Print shipping labels and track orders
• Virtual terminal screen in the Square dashboard for entering and processing customer phone-in orders
• Sales tracking and business reports

Costs to Use Square to Sell Online

Square’s online store feature is free (you only pay credit card processing charges), unless you decide to upgrade to a higher-tier plan. Square Payments also integrates with other ecommerce platforms for free; again, you pay only the credit card processing fees. Square’s online processing fees are simple and straightforward.

Square online store processing fees include:

• Setup and monthly fees: $0
• Cancellation fees: $0
• Integration fees for connecting to another ecommerce platform: $0
• Online order transaction fee: 2.9% plus 30 cents*
• Keyed-in sale transaction fee for phone orders: 3.5% plus 15 cents

*Lower rates available with certain Online Store plans

Square Online Store Plans

All Square Online stores come with unlimited products, inventory management, free templates and site customization, SEO tools, automatic tax calculators, and a shopping cart.

Use Square to Manage Invoices & Recurring Payments

Square lets you create invoices and email them to your customers from both your Square dashboard and POS app. Once received, your customers can conveniently pay invoices using a credit card by clicking the Pay button on their invoice. They can even choose to save their payment information to use for future payments or as a recurring payment.

To use Square for invoicing, you need to:

1. Set up a free Square account: Invoicing is done through the same dashboard and POS app as mobile and in-store payments.
2. Generate and send invoices: Create invoices in your Square POS or via your online Square dashboard, and then email them to customers or print as needed; you can enter inventory items on invoices or create custom charges.
3. Track payment status: Online invoice payments record automatically as customers pay; you can also enter check or cash payments, or process phone-in credit card payments within your Square dashboard or app.

Recurring payments are a handy feature that Square provides. They’re ideal for automating monthly service fees, e.g., for lawn care or housekeeping services, or monthly tuition or dues. Customers enjoy the convenience of automated payments and you enjoy a steady stream of predictable, on-time income each month.

Use Square Invoice Payments to Manage Your Business

Square gives you a powerful set of invoicing tools to help you track payments and stay on top of late accounts. Best of all, if you combine invoice sales with other types of selling, such as online, in-store, and mobile sales, everything is recorded in your Square dashboard for an accurate view of your entire business.

If you use invoices, you’ll find that Square makes it easy to:

• Create and send single or batch invoices
• Track sales and payments by customer
• Track aging and late-pay accounts
• Assign inventory to sales tickets
• Charge for parts, items, and services on one invoice
• Accept invoice payments via credit card, check, and cash
• Set up secure and convenient recurring billing
• Pull up-to-date sales reports
• Send automated payment reminders
• Market or send service updates to customers

Costs to Use Square Invoices & Recurring Payments

Square’s invoicing and recurring payments feature is free. You aren’t charged for creating or emailing any invoices or setting up recurring payments. Plus, you only pay credit card processing charges for the invoices that are paid by credit card. Cash and check payments cost you nothing.

Square invoicing fees include:

• Square account and POS app: $0
• Square invoicing software: $0
• Credit card transaction fee: 2.9% plus 30 cents
• Card on file or recurring credit card transaction fee: 3.5% plus 15 cents

Bottom Line

When someone asks how to use Square credit card processing, there is no one straightforward answer because Square can be used in so many different scenarios, including mobile sales, in-store sales, online sales, and invoicing. However, the first step is always creating a free Square account and downloading the free POS app.

Square credit card processing is so popular because it is quick, easy, and affordable. Once you know how to use Square, you’re not held back by troublesome integrations, equipment add-ons, or software learning curves. Everything is streamlined into one tidy package. Visit Square to create a free account

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