What You Need to Start With Square

Square is a payment processor that lets you accept credit cards, debit cards, and digital wallets in person or online. To set up an account, you need a valid email address, a U.S. Social Security Number or EIN, a bank account for deposits, and basic business information. The process takes about 10 to 15 minutes, and you can start processing payments the same day in most cases.

Square does not charge a monthly fee to hold an account. Instead, you pay a percentage of each transaction — currently 2.6% plus 30 cents for in-person card payments and 2.9% plus 30 cents for online payments, though these rates can vary depending on your industry and the type of card used. You should review Square's current pricing on their website before you begin, since rates change periodically.

Key Takeaways

  • You can create a Square account online in minutes using an email address, Social Security Number or EIN, and bank account details.
  • Square charges per transaction rather than a monthly fee, so you only pay when you actually process a payment.
  • Your first deposit typically arrives in one to two business days after your first transaction, though timing depends on your bank.
  • You will need to choose whether you want to accept payments in person, online, or both, because each method requires different hardware or setup.
  • Square may ask for additional documents like a driver's license or business license during the account review process.

Creating Your Account Online

Go to squareup.com and click the "Sign Up" button. Enter your email address and create a password. Square will ask you to choose your account type — select "Seller" if you are a business owner, or "Individual" if you are a sole proprietor or freelancer. You will then enter your first and last name, phone number, and the country where you operate.

Next, provide your Social Security Number (if you are a sole proprietor) or your EIN (if you have a business entity like an LLC or corporation). Square uses this to verify your identity and comply with tax reporting requirements. You will also enter your date of birth and the last four digits of your Social Security Number or EIN. Square will not process your account until this information matches government records.

After identity verification, you will add your business information. Enter your business name, business address, and the type of business you operate. Square uses this to categorize your account and determine which payment methods you can accept. Be as specific as possible — for example, "retail clothing store" rather than just "retail" — because this affects your transaction rates and the features available to you.

Connecting Your Bank Account

Square deposits your payments into a U.S. bank account in your name or your business's name. During signup, you will enter your bank's routing number, your account number, and the account type (checking or savings). You can find this information on a check, your bank's website, or by calling your bank directly.

Square will verify your bank account by depositing two small amounts — usually less than $1 each — into your account within one to two business days. Once those deposits appear in your bank account, you will return to Square and enter the exact amounts to confirm ownership. This verification step protects both you and Square by ensuring the account is genuinely yours.

After verification, your first customer payment will deposit into this account. Timing varies by your bank, but most deposits arrive within one to two business days of the transaction. Square charges its transaction fee at the time of payment, so the amount that reaches your bank account is the full payment minus the fee.

Choosing How You Will Accept Payments

Square offers three main ways to take payments: in-person with a card reader, online through a website or invoice, or through a mobile app. Your choice determines what hardware or software you need and which features are available to you.

In-person payments require a Square card reader, which plugs into your phone or tablet's headphone jack or connects via Bluetooth. Square sells several reader models at different price points — the basic model costs around $10 to $30, while more advanced readers with built-in screens cost more. You can order a reader during signup or purchase one later.

Online payments do not require hardware. You can create a Square Online store, send payment invoices to customers by email, or embed a payment button on your website. Square Online has a monthly fee that varies by plan, while invoices and payment buttons are free to use.

Mobile app payments let you take payments through the Square Point of Sale app on your phone or tablet. This option works well for service providers, contractors, or anyone who meets customers in different locations. The app is free to read, but you still need a card reader to accept physical cards.

Completing Your Account Review

After you submit your initial information, Square reviews your account to verify your identity and assess risk. This review typically takes 24 to 48 hours, though it can take longer depending on the information you provided. During this time, you can set up your payment methods and explore Square's features, but you cannot process live payments yet.

Square may ask for additional documents during the review. Common requests include a copy of your driver's license, a business license, a recent bank statement, or proof of your business address. If Square requests documents, you will see a message in your account dashboard explaining what is needed and how to upload them. Respond as quickly as possible, because delays in providing documents can slow down your account set up.

Once your account is approved, you will receive an email confirmation. At that point, you can process your first payment. If your account is declined or flagged for additional review, Square will explain the reason and tell you what steps to take next.

Processing Your First Payment

After approval, the way you take your first payment depends on your setup. If you ordered a card reader, it will arrive by mail within a few business days. Once it arrives, read the Square Point of Sale app, sign in with your account email and password, and pair the reader to your phone or tablet by following the app's instructions.

To take a payment, open the app, enter the amount, and ask the customer to insert, tap, or swipe their card. The app will confirm the payment and provide a receipt. You can email or text the receipt to the customer, or print one if you have a printer connected to your device.

If you are taking online payments, you can create an invoice through your Square account and send it to a customer by email. The customer clicks a link in the email, enters their payment information, and completes the transaction. The payment appears in your account when ready, and the deposit reaches your bank account within one to two business days.

Understanding Fees and Deposits

Square's transaction fees are deducted at the time of payment. For in-person card payments, the current rate is 2.6% plus 30 cents per transaction. For online payments, it is 2.9% plus 30 cents. These rates explore to most card types, but some specialized cards or international transactions may have different rates.

Your deposits are grouped by business day and sent to your bank account automatically. If you process $500 in payments on Monday, that $500 minus fees will deposit on Tuesday or Wednesday, depending on your bank's processing time. Deposits typically arrive within one to two business days, but some banks take longer.

You can view your transaction history, fees, and deposits anytime by logging into your Square account and checking the Dashboard or Activity section. This shows you exactly what you earned, what fees were charged, and when money hit your bank account.

Frequently Asked Questions

How long does it take to get approved after I sign up?

Most accounts are approved within 24 to 48 hours. If Square needs additional documents, approval may take longer. You will see a message in your account dashboard if more information is needed, and you can upload documents directly through your account.

Can I use Square if I do not have a business license?

Yes. Sole proprietors and freelancers can open Square accounts without a formal business license. You will need a Social Security Number and a bank account in your name. If you operate under a business name, you may need to provide a DBA (Doing Business As) certificate, depending on your state and Square's review.

What happens if a customer disputes a charge?

Square handles chargebacks through your account. If a customer disputes a payment, Square will notify you and may temporarily hold the disputed amount. You can respond with evidence like a receipt or email confirmation. If the dispute is resolved in your favor, the money stays in your account. If it is resolved against you, the amount is deducted from your next deposit.

Do I have to use Square's card reader, or can I use a different one?

Square's Point of Sale app works with Square's own card readers. You cannot use third-party readers with the Square app. However, if you use a different payment processor, you may have other reader options available.

Can I cancel my Square account anytime?

Yes. You can close your account through your account settings anytime. There is no cancellation fee or contract. After you close your account, you can no longer process new payments, but you can still view your transaction history and read reports for your records.