The Square Reader is an affordable, entry-level choice that comes packed with value for small business credit card processing needs.
WRITTEN & RESEARCHED BY
Expert Contributor
Last updated onUpdated
REVIEWED BY
Expert Contributor
| Total Rating | 4.7 |
|---|---|
| Pricing4.6 | |
| Ease Of Use5.0 | |
| Features4.8 | |
| Customer Service4.1 | |
| User Reviews4.2 | |
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Table of Contents
For many small business owners, the Square Reader for contactless and chip (as it’s officially called) is a great entry-level device that’s compatible with EMV-enabled cards. Also, it supports NFC-based payment methods, such as Apple Pay and Google Pay.
The Square Reader differs from most competing devices in that it doesn’t include magstripe swiping capability. This isn’t so much a limitation as it is a means of future-proofing the device while still maintaining a small, portable form factor. EMV is now the standard method of accepting a credit or debit card in the US, Europe, and many other countries.
Square Reader is intended for smaller retailers like food trucks or individual vendors like farmers’ market operators looking for a quick way to take card payments. But Square has enough features, and its rates are affordable enough that it’s still a practical option for slightly larger businesses like cafes. Businesses that are just starting out can also easily scale up to some of Square’s other hardware options if they expand as well.
| Pricing4.6 |
|---|
| Hardware 5.0 |
| Payment Processsing 4.0 |
Square has done well at keeping its hardware affordable, and because it handles sales directly, pricing is also consistent. The Second Generation Square Reader for contactless and chip sells for $59, and the older, first-generation version retails for $49.
Square offers a 30-day money-back guarantee on all hardware purchases. You can return the device within that time frame for a refund, no questions asked. Because Square charges no monthly fees and has no contracts, you can simply stop using the app without worrying about a penalty.
| Item | Value |
|---|---|
| Pricing Range | $0-$165/month |
| Account Setup Fee | $0 |
| Contract Length | Month-to-month |
| Processing Model | Flat-rate |
| Card-present Transaction Fee | 2.6% + $0.15 |
| eCommerce Transaction Fee | 2.9% + $0.30 |
| Keyed-in Transaction Fee | 3.5% + $0.15 |
| Equipment Cost | $59 |
Note that businesses processing over $250K/year can qualify for discounted processing rates. Discounted rates are also available if you subscribe to a Square for Retail or Square for Restaurants paid plan.
| Square Credit Card Readers Plans | Price | When To Use |
|---|---|---|
| Square POS | $0/month | If you need basic in-person and online selling features. |
| Square Appointments | $0-$69/month | If you want to combine payment processing with appointment functionality. |
| Square For Retail | $0-$89/month | If you run a retail business and need retail-centric tools such as advanced inventory. |
| Square For Restaurants | $0-$165/month | If you run a restaurant business and need restaurant-centric tools such as bar tabs. |
| Square Invoices | $0-$20/month | If your business accepts invoice payments (online or in-person). |
You can use a Square reader with any of Square’s monthly software plans, either by itself or with additional hardware. Even better, you will not pay any added monthly fees to use additional readers, or other Square hardware such as a Square Terminal. However, some software plans, such as the restaurant- and retail-specific plans charge an additional fee per business location.
| Square Credit Card Readers Extra Costs | Price |
|---|---|
| Charging dock | $39 |
You might also want to spring for the Bosstab Dock, which conveniently holds your reader in place for countertop payments and charges your device. The dock is compatible with both the first and second-generation reader.
The Square Reader for contactless and chip excels in fundamental product design. Rounded edges and a smooth, slick surface allow it to pair well with the smartphones and tablets intended to work with it.
Like any good tech device, the Square Reader also has various optional accessories you can add, such as cases, receipt printers, and cash drawers. Many of these are third-party products, but they can be conveniently ordered from the Square website.
| Ease Of Use5.0 |
|---|
| Initial Setup 5.0 |
| Device Use 5.0 |
Square is one of the few merchant services providers in the industry specializing in meeting first-time business owners’ needs.
The company emphasizes simplicity and affordability in its products and services, which applies to the Square Reader and Square POS app. If you can follow simple directions, you should be able to set up your reader and start accepting transactions without the need for hours of training, something that is reflected in our scoring system.
While basic processing tasks are very simple, there’s naturally going to be a bit more of a learning curve if you want to take full advantage of Square’s more advanced features and customization options.
At the same time, the company’s offerings can sometimes be a bit too simple for more advanced users. Customization options are often limited, so don’t expect to have the same level of granular control over your checkout interface that you would have with something like Stripe.
The easiest way to get your hands on a Square Reader is to order it directly from the Square website. It will usually arrive within five to seven business days. If you’re eager to start processing with Square and can’t afford to wait that long, the Square Reader is also available from many large retailers, including Amazon, Best Buy, and Walmart.
Unlike the traditional countertop terminals you get with a merchant account provider, the Square Reader doesn’t need to be preprogrammed with a software load that connects your merchant account to your provider’s payment processing network.
That said, Square offers a warranty on products purchased directly from its website. If you get your reader from anywhere else, the same warranty doesn’t apply. You’ll need a compatible mobile device to set up the reader. Be sure to download the free Square point of sale app and enter your Square account’s login credentials before you start.
Start by enabling Bluetooth on your mobile device. You’ll also need to activate a few permissions when you first log on (location services, access to the microphone (for magstripe transactions), and push notifications. And you’ll need to set up all of the inventory, sales tax rates, and any other app features you plan to use before you can start selling with Square.
If you’ve done all of that ahead of time, good! If not, ensure you’ve at least set up the sales tax feature before making your first sale.
Once the Square point of sale app is open, go into the settings menu, scroll down to “Card Readers” and press “Connect a Card Reader.” Square will ask you which kind of reader you’re using. After selecting the Square Reader for contactless and chip, the Square app will give you on-screen instructions on how to pair the device. It’s pretty simple:
After you’re connected, the Square Point of Sale app will download any firmware updates for the reader, which can take a few minutes. It will notify you that your new Square Reader is ready to use!
| Features4.8 |
|---|
| Device Hardware Features 4.8 |
| Device Software Features 4.8 |
The free Square POS app is your gateway to unlocking the potential of Square’s mobile processing system and associated services. It’s available for Apple devices running iOS/iPadOS 12.0 or higher and Android (operating system requirements vary by device, so contact Square if you have an older model).
Square is a good, general app that works well for most small businesses. However, if you have more specialized needs, the Square Reader will also work with Square Appointments, Square for Retail, and Square for Restaurants.
You can learn more about Square’s software features by reading our full Square POS app review, and also check out an overview of available features below. Some features, such as delivery management and marketing tools, carry additional fees.
| Square Credit Card Readers Features | Availability |
|---|---|
| Multi-Store Support | |
| Contactless Payments | |
| Multi-Channel Selling | |
| Gift Cards | |
| Customer Loyalty | |
| Marketing Tools | |
| Online Ordering | |
| Inventory Management | |
| Reporting | |
| Menu Management | |
| Delivery Management | |
| EBT Acceptance | |
| Employee Management | |
| Text Messaging |
One Square software feature worth pointing out when it comes to considering the Square Reader is Tap to Pay. This feature allows you to accept NFC payments using just your iPhone or Android and the Square POS app. This means that if you are OK with processing only contactless payments (no EMV/chip card payments), you don’t necessarily need to purchase a Square Reader in order to take mobile payments.
| Customer Service4.1 |
|---|
| Personal Support 3.5 |
| Self-Service 4.6 |
Square has invested a lot in building its customer support resources. The support center is loaded with helpful informational articles, walk-throughs, and troubleshooting tips that cover every aspect of Square’s services, including advice for dealing with all of Square’s hardware.
| Square Credit Card Readers Customer Service | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
In addition to the self-help knowledgebase, there are other support options:
On the whole, Square offers an impressive number of customer support options, including exhaustive self-help resources. However, some customers complain about the quality of said support (see User Reviews section below).
| User Reviews4.2 |
|---|
| Customer Feedback 4.0 |
| Review Site Aggregate 4.3 |
Customer reviews of the Square Reader itself is mostly positive, though many reviews cite issues with Square Payments as a whole—namely account instability and unsatisfactory customer service.
Square is BBB-accredited and has an A+ score with the BBB. On their BBB profile, the company has received over 3,000 complaints in the past year, and 937 complaints filed in the last 12 months. However, those are normal complaint numbers for such a large processor.
On TrustPilot, the company has a score of 4.3/5, out of over 5,600 reviews.
Of course, those reviews mainly discuss Square’s services in general, rather than just the Square Reader.
| Square Credit Card Readers Review Summary | |
|---|---|
| Pricing Range | $0-$165/month |
| Choose If You Need |
|
With Square, the overall value is astounding — you get a free POS app, free software for invoicing, inventory management, a virtual terminal, and the ability to add loyalty programs, marketing tools, employee management, and payroll features.
Considering the predictable, flat-rate pricing for payment processing, the total lack of commitment required to sign up, and the lack of mandatory monthly fees, it’s a great deal, especially for new and low-volume businesses.
Nonetheless, the Square Reader for contactless and chip isn’t perfect. The lack of an integrated magstripe reader won’t be a problem in the future, but today it can put you in an awkward situation if you need to switch to the magstripe reader while trying to complete a transaction.
The price point is appealing, and it’s one of the lowest-priced options for contactless payments around.
Need more options? Check out our roundup of the best mobile POS systems.
We spend hours researching and evaluating each POS hardware and mobile payments device that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our product ratings.
When rating POS hardware (which might include registers, mobile card readers, and other similar devices), we use a 38-point rubric that looks at pricing, ease of use, features, customer service, and user reviews. We weigh each section differently to calculate the total star rating.
Each section is further broken down into granular, weighted subsections, in which we look at specific attributes, like whether reduced fees are available for multiple terminals, which payment processing options are available, and how well the hardware integrates with POS or payment processing software apps. We’re also paying careful attention to hardware’s relative cost, any associated fees, and whether financing is available, among other things.
Learn more about how we rate POS hardware.
The Merchant Maverick Seal of Approval 🏆
Square Credit Card Readers |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square Credit Card Readers for yourself.
The Merchant Maverick Seal of Approval 🏆
Square Credit Card Readers |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Square Credit Card Readers for yourself.
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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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