The Complete Guide To Getting A Free Square Card Reader For Your Business

Despite the 2015 switch to EMV as the primary means of accepting credit cards in the US, Square still includes one free Square Reader for Magstripe with each new account. Two options are currently available: a reader with a Lightning connector for use on iOS/iPadOS devices, and a reader with a traditional 3.5mm headphone jack (which presumably would work on older iPhones or Android devices).

Note that a Square Reader with a USB-C connector is not currently available. Additional magstripe readers are available for $10 each.

The Square Reader for Magstripe is small, very portable, and doesn’t need to be charged. It works with your existing smartphone or tablet in conjunction with the free Square Point of Sale (POS) app, making it an easy and very affordable way to start accepting credit and debit card payments.

However, it’s no longer a good choice as your primary means of taking in-person payments. Because of the EMV liability shift that went into effect in 2015 when EMV (chip card) payments became standard in the US, you’ll now be responsible for any fraudulent transaction that takes place if you swipe the magstripe on an EMV-enabled card.

Another consideration is that magstripe cards themselves are on the way out. Visa and Mastercard have announced plans to phase out magstripes on the back of newly-issued cards within the next few years. While it may be OK to keep a Square Reader for Magstripe in your hip pocket for emergencies, we recommend you only use it when necessary to avoid losing a sale. Instead, we recommend upgrading to the Square Contactless and Chip Reader as your primary means of accepting mobile payments.

The Square Reader for Contactless and Chip is also an option as you sign up for your free Square account.

Yes, you will need to shell out $59 for the Square Contactless & Chip Reader, but you’ll also get the free magstripe reader too!

When it comes to Square’s pricing, going from free to $59 may seem like a big jump, but here are a few things worth considering:

• Digital Payments: With the contactless and chip reader, you can start taking digital wallet payments, such as Apple Pay, Google Pay, and Samsung Pay.
• EMV Chip Reader: The key difference between the magstripe reader and the contactless and chip reader, of course, is that you’ll read the EMV chip on the credit card by dipping instead of swiping. EMV is more secure and prevents you from being held liable for any fraudulent charges.
• Fraud & Chargeback Protection: The Square Contactless & Chip Reader provides more protection from the risk of chargebacks and fraud than the magstripe reader. Some business owners aren’t aware of this liability shift that happened a few years back. You’ll definitely want this additional protection if you sell high-ticket items.

For more details on the Square Contactless & Chip Reader, visit the Square Site or check out our Square’s Contactless & Chip Reader review.

Another option, if you are thinking about a more all-in-one device, is the Square Terminal for $299 (or $27/month with financing). Dip, swipe, or tap a customer’s card to take their payment, navigate on the larger screen, and print your customer a receipt from this device. This is a great upgrade if you want a single device that can function as either a traditional countertop terminal for in-store use or a mobile card reader for accepting payments anywhere.

Getting a free Square reader is very easy, as long as you don’t mind waiting a few days for it to be delivered through the mail. Here are step-by-step instructions to get your card reader:

Step 1 — Create A Square Account: Creating a Square account is very easy. Simply go to Square’s website, hit the “Get Started” button, and the process begins when you enter your email.

Step 2 — Create A Password: All you need to open an account is to enter your email address and create a password. At this step, you also agree to Square’s e-sign consent, terms, and privacy policy.

Step 3 — Answer Questions About Your Business: Next, Square asks you a few more questions about your business, including how you plan to take payments (e.g., online, invoices, brick-and-mortar, etc.). Don’t fret about this step too much, as you’ll still have access to all the features that enable you to do these things with your Square account. At the same time, be completely honest and truthful about the nature of the products and services you’ll be selling. If your business violates Square’s Acceptable Use Policy, your account will quickly be shut down.

Step 4 — Verify Your Identity: Square does not perform a credit check, but you’ll need to provide your address so that Square can verify who you are. It only takes a few moments for Square to confirm you’re a real person. Then you’re ready to choose your Square reader!

Step 5 — Choose Your Square Reader: If you’re here for the free Square Reader, then go ahead and select the model with either the headset jack or the Lightning connector. As mentioned above, we encourage you to consider purchasing the Contactless and Chip Reader (which also comes with a magstripe reader) if your business sells higher-ticket items so that you’re better protected against fraudulent transactions.

Step 6 — Connect Your Square Reader For The First Time: Using the reader for the first time is easy. You simply plug it in, open the Square POS app on your device, log into your Square account, and you’re ready to make a sale. When it’s time to swipe, use a swift, smooth motion as you pull the card straight through. That’s all there is to it! You can email your customer a receipt and simultaneously build an email list that Square stores for you while you’re at it.

Check out everything you need to know about setting up your free Square account if you want the process to be completely demystified from start to finish.

If you’re a new Square seller and purchase a reader from a participating retailer, you’ll get a $10 redemption code. After you redeem the code with Square, they’ll credit your linked bank account. Where do you find a participating retailer? You can plug your zip code into Square’s list of authorized retailers and see what comes up. For US-based merchants, options include Target, Best Buy, Walmart, CVS, Office Depot, and Staples.

Square provides a 30-day risk-free return on hardware purchased in the Square Shop. If you do end up purchasing from another retailer, you’ll need to check with the store’s return policies. Square provides a six-month limited warranty on the reader, but you need to keep the box, cords, receipt, or packing slip.

Some of you may be wondering if you can purchase a used Square reader or even borrow one from a friend. The answer to that question is yes! Square readers don’t hold any account data, so you can swipe with a used reader. However, the warranty only applies to the original purchaser.

If you see a card reader that is better suited for your shop but you don’t have the funds upfront, Square offers in-house financing for any order that’s $49-$10,000. You can choose the financing option during checkout and see how much your business would pay if you choose three, six, or twelve months or spread payments over two years. We think this is a good option, with a rate that is probably better than financing on a credit card.

Yes. Square offers its first magstripe reader free when new merchants create an account. Additional Square magstripe readers must be purchased for $10 each.

Yes. Square card readers are offered for free to merchants upon successful account creation. You must complete Square’s registration process to be eligible for the free Square reader.

Yes. Square allows its accounts and card readers to be used by individuals for personal use. You do not have to have an established business to use Square.

Square does not charge any recurring monthly or annual fees for a basic account. There are also no penalties for inactivity or for closing your account. However, Square also offers several optional services for specific industries (Square For Retail, Square For Restaurants. etc.) that require a monthly subscription fee.

Square magstripe readers can be used on any device with a compatible connector. They are not linked to any specific account. It is possible to borrow one of Square’s magstripe card readers from someone else in a pinch. However, merchants should verify the hardware hasn’t been tampered with.

After you set up a Square account and verify your identity, you will be prompted to select which Square hardware you need. You can also purchase readers through various authorized retailers and then complete the account signup process. Square offers a $10 reimbursement code with these devices.

No. To accept payments with Square, you must use one of Square’s proprietary card readers. It is not possible to use a credit card processor from a similar service (such as PayAnywhere) with Square’s mobile POS app.

No. Square’s card readers and terminals are only compatible with Square’s processing network. They cannot be reprogrammed to work with any other credit card processor.