Getting started with Square

Square is a payment processor that lets you accept credit cards, debit cards, and digital payments through a mobile reader, online store, or in-person terminal. To start taking payments with Square, you create an account on their website, provide basic business information, and connect a bank account where deposits will land. The whole process takes about 10 to 15 minutes, though Square may take a few business days to verify your details before you can process your first transaction.

Square charges a flat rate per transaction — currently 2.6% plus 30 cents for card-present payments and 3.6% plus 30 cents for online or phone orders, though these rates can change. There are no monthly fees to maintain an account, and you only pay when you actually process a payment. If you want to add features like invoicing, appointment scheduling, or a full point-of-sale system, Square offers those as add-ons, some of which do carry monthly costs.

Key Takeaways

  • You need a valid Social Security number or EIN, a business address, and a bank account to open a Square account.
  • Square verifies your identity and bank account before you can process payments, which usually takes one to three business days.
  • You can start accepting payments immediately after account creation, but deposits won't process until verification is complete.
  • Square charges per transaction with no monthly fee, and you choose which hardware or software tools fit your business model.

What you need before you start

Have your Social Security number or Employer Identification Number (EIN) ready — Square requires one or the other to verify your identity. You'll also need a valid business address, a phone number, and an email address. If you're operating as a sole proprietor, your personal address works; if you're an LLC or corporation, use your registered business address.

You'll need a U.S. bank account in your name or your business name to receive deposits. Square connects directly to your bank using your routing number and account number, so have that information from a recent check or your online banking portal. Square does not process payments into accounts held outside the United States.

Creating your account on Square's website

Go to squareup.com and click the sign-up button. Enter your email address and create a password, then provide your full name, phone number, and business name. Square will ask what type of business you run — select the category that best matches your work, whether that's retail, food and beverage, services, or something else. This helps Square understand your payment patterns and flag any unusual activity.

Next, enter your business address and the address where you'll primarily process payments. If you operate from home or a mobile location, enter that address. Square will ask for your date of birth and the last four digits of your Social Security number (or your full EIN if you're using that instead). This information is used to verify your identity and is not stored in plain text on Square's servers.

Connecting your bank account

Square needs to verify that you own the bank account where deposits will go. Enter your routing number and account number from a check or your bank's website. Square will make two small deposits to that account — usually within one to three business days — and you'll need to confirm the exact amounts to prove you have access to it.

Once you've entered your bank details, Square may ask additional questions about your business, such as your expected monthly payment volume or whether you've had a merchant account before. Answer honestly; Square uses this information to assess risk and determine your processing limits. If you've had chargebacks or fraud issues in the past, disclose them — Square will find out anyway, and honesty improves your chances of approval.

Choosing your payment hardware or software

Square offers several ways to accept payments depending on how you do business. If you take payments in person, you can use the Square Reader (a small card reader that plugs into your phone or tablet) or a Square Terminal (a standalone device that doesn't require a phone). If you sell online, you can use Square Online, their built-in e-commerce platform, or integrate Square payments into your own website. For phone or mail orders, you can manually enter card details in the Square Dashboard or send a payment link to your customer.

You don't have to choose everything at once. Start with the hardware or software that matches your immediate needs — you can add more tools later. Square's basic card reader is free when you open an account; terminals and other equipment have upfront costs ranging from $50 to several hundred dollars depending on the model.

Verifying your identity and bank account

After you submit your information, Square's system runs an automated check against public records and your bank. Most accounts are verified within one to three business days. During this time, your account is active and you can explore the dashboard, but you won't be able to process live payments yet.

If Square needs more information, they'll email you asking for documents such as a government-issued ID, a recent utility bill, or a business license. Respond to these requests as quickly as you can — delays in providing documents can slow down verification. Once verification is complete, you'll receive an email confirmation and your account will be fully active.

Processing your first payment

After verification, you're ready to take payments. If you're using a card reader, download the Square Point of Sale app on your phone or tablet, open it, and tap "Charge." Enter the payment amount, have your customer insert or tap their card, and the transaction processes in seconds. The payment appears in your Square Dashboard immediately, and the funds deposit to your bank account within one to two business days (or next business day if you pay for faster deposits).

If you're using Square Online or a payment link, customers complete the transaction themselves without you needing to handle their card. This reduces your fraud risk and is often faster for remote or online sales. Keep records of all transactions in your Square Dashboard — they're stored there permanently and you can download reports for accounting or tax purposes.

Frequently Asked Questions

How long does it take to get approved?

Most accounts are verified within one to three business days. If Square needs additional documents, verification can take longer. You can use your account immediately after creation, but live payments won't process until verification is complete.

What happens if Square denies my account?

Square will email you explaining why. Common reasons include incomplete information, a mismatch between your ID and application details, or a history of chargebacks or fraud. You can contact Square support to discuss the decision or reapply after fixing the issue.

Can I use Square if I don't have a business license?

Yes. Sole proprietors and freelancers can open a Square account using their Social Security number and personal address. You don't need a formal business license, though some states or cities may require one depending on your work.

What if my bank account is in a different name than my business?

Your bank account should be in your name or your business name. If it's in a different name entirely, Square may reject it during verification. Contact your bank about opening an account in the correct name, or use a business account if you're operating as an LLC or corporation.

Can I have multiple Square accounts?

You can have one personal account and one business account, or multiple business accounts if you operate separate businesses. Each account needs its own email address and bank account. Contact Square support if you need to set up multiple accounts to make sure they're configured correctly.