Square account setup takes about 15 minutes and requires a valid email, phone number, and bank account

Square is a payment processor that lets you accept card payments—in person, online, or by invoice—and deposit the money into your bank account. To start, you go to squareup.com, enter your email address, create a password, and provide your legal name, phone number, and the business address where you'll be processing payments. Square then verifies your identity and connects to your bank account so deposits can land there automatically.

The whole process from signup to your first transaction usually takes one to three business days, depending on how quickly your bank confirms the account connection. You don't pay anything upfront to open an account—Square charges per transaction instead, which means you only pay when money actually moves.

Key Takeaways

  • You need a valid email, phone number, legal name, and a U.S. bank account to open a Square account; the signup itself takes about 15 minutes.
  • Square charges a percentage of each transaction (rates vary by payment method) and a flat fee for some services, but there is no monthly account fee.
  • After signup, you can accept card payments immediately through Square's online dashboard, but deposits to your bank account may take one to three business days to process.
  • Square offers different tools depending on how you take payments: the free Square app for mobile card readers, Square Online for a website, or Square Invoices to bill customers by email.

What information Square needs during signup

When you first visit squareup.com and click "Sign Up," Square asks for your email address and a password you create. Next comes your legal name (the name on your ID), phone number, and the address where you'll be doing business. If you're signing up as a sole proprietor, that's your personal information; if you're registering a business entity, you'll provide the business name and may need an Employer Identification Number (EIN) later.

Square then asks you to connect a bank account. You'll enter your routing number and account number (both appear on the bottom left of a check, or you can find them in your bank's online portal). Square verifies the account by depositing two small amounts (usually under $1 each) into it within one to two business days, then asks you to confirm those amounts in your Square dashboard. Once confirmed, your account is fully active and ready to process payments.

How to connect your bank account for deposits

Your bank account is where Square deposits the money from your transactions, minus their fees. During signup, you enter your routing and account numbers directly into Square's form. Square does not charge you to connect the account—the verification deposits are free, and you simply confirm the amounts to prove you own the account.

Deposits from Square land in your bank account on a schedule that depends on your payment method and when the transaction occurred. Card payments typically deposit within one to two business days; ACH transfers (if a customer pays by bank transfer) may take three to five business days. Square shows you the expected deposit date in your dashboard before the money leaves their system, so you can plan around it.

Choosing which Square tool fits your payment method

Square offers different products depending on how you want to take payments. If you're accepting cards in person, you download the free Square app on your phone or tablet and connect a card reader (Square sells readers starting around $10 to $50 depending on the model). If you want to bill customers online, Square Online lets you build a website with a shopping cart and checkout page. If you send invoices by email, Square Invoices lets customers pay directly from the invoice link without visiting a website.

You don't have to choose just one—many businesses use multiple Square tools at the same time. A coffee shop might use the card reader in-store and Square Online for delivery orders. A freelancer might use Square Invoices to bill clients and the mobile app to accept card payments at meetings. All transactions flow into the same Square account and deposit to the same bank account.

Square's transaction fees and what they cover

Square charges a percentage of each transaction plus, in some cases, a flat fee. For in-person card payments with a card reader, the rate is typically 2.6% plus $0.10 per transaction (rates vary slightly by card type and region, so check squareup.com for your exact rate). For online payments through Square Online or invoices, the rate is usually 2.9% plus $0.30. ACH bank transfers cost 1% with a minimum of $0.01 and a maximum of $5 per transaction.

These fees are deducted from each transaction before the money reaches your bank account. If a customer pays $100 with a card in person, Square takes roughly $2.70 and deposits $97.30 to your bank. There is no monthly account fee, no setup fee, and no fee to close your account—you only pay when you actually process a payment.

What happens after you complete signup

Once your bank account is verified, you can start processing payments immediately through your Square dashboard. If you're using a card reader, you download the Square app, sign in with your email and password, and the app is ready to take payments. If you're using Square Online, you build your store in the dashboard and Square generates a link you can share or embed on another website. If you're using invoices, you create an invoice in the dashboard, enter the customer's email, and Square sends it automatically.

Your first few transactions may take slightly longer to process while Square monitors your account for fraud, but this is normal and does not delay your deposits. You can see every transaction, refund, and deposit in your Square dashboard in real time, and you can download reports by day, week, or month for your records or accounting.

Frequently Asked Questions

Do I need a business license to open a Square account?

No. Square accepts sole proprietors, freelancers, and informal businesses. You can sign up with just your personal name and Social Security Number. However, if you operate under a business name, you may want to register it with your state and provide the business name during signup—this helps Square match your account to your bank account during verification.

What if my bank account verification fails?

Square will tell you why the verification failed (usually a mismatch between the name on your account and the name you entered, or an incorrect routing number). Go back to your account settings, correct the information, and try again. If the problem persists, contact your bank to confirm your routing and account numbers, or call Square support at the number in your dashboard.

Can I change my bank account after I've already signed up?

Yes. In your Square dashboard, go to Account Settings, then Banking, and select "Change Bank Account." Enter your new routing and account number, and Square will verify it the same way it did during signup. Your old account will stop receiving deposits once the new one is verified.

How long does it take to get my first deposit?

Your first deposit usually arrives one to two business days after your first transaction, assuming your bank account verification is complete. If verification is still pending, deposits will wait until it's done. After that, deposits follow Square's standard schedule based on when the transaction occurred and which payment method the customer used.

What if I want to close my Square account?

You can close your account anytime from your dashboard settings. Square will process any pending transactions and deposits, then stop charging you. You keep all your transaction history and can download reports before you close. There is no penalty for closing.