Taking a payment on Square in three steps
To take a payment on Square, open the Square Point of Sale app on your phone or tablet, tap the payment button, enter the amount, and hand the device to the customer to insert, tap, or swipe their card. The transaction processes in seconds and the money lands in your Square account within one to two business days. You do not need a separate terminal — the app works on any iOS or Android device paired with a Square card reader.
Square handles the entire transaction: it reads the card, encrypts the data, sends it to the customer's bank, and confirms the payment. You see the money appear in your Square Dashboard, where you can track sales, refund transactions, and download records for your records or taxes.
Key Takeaways
- You need the Square Point of Sale app, a compatible phone or tablet, and a Square card reader to accept card payments.
- Funds from card payments arrive in your bank account within one to two business days, not instantly.
- Square charges a flat rate per transaction — currently 2.6% plus 30 cents for in-person card payments — deducted automatically when the money deposits.
- You can take payments online, in person, or by phone using the same Square account, and all transactions appear in one Dashboard.
- If a customer disputes a charge or a card is declined, Square's Dashboard shows the status and next steps immediately.
What you need to get your free guide with Square
You need a Square account (free to create), the Square Point of Sale app installed on a phone or tablet, and a Square card reader. Square sells several readers: the Square Reader for contactless and chip cards (the most common), the Square Reader 7 (a full-size terminal), and the Square Stand (a countertop setup). The basic reader costs around $29 to $49 depending on which model you choose, though Square sometimes includes one free with a new account.
Download the Point of Sale app from the Apple App Store or Google Play Store, sign in with your Square account, and pair it with your card reader using Bluetooth. The app walks you through pairing step by step. Once paired, the reader is ready to accept payments immediately — there is no waiting period or additional setup.
You will also need a bank account where Square can deposit the money. Square asks for your routing number and account number during signup, and you can change the deposit account anytime in your account settings.
The step-by-step process for taking a payment
Open the Square Point of Sale app and tap the large payment button (usually a dollar sign or "Charge" label). Enter the dollar amount the customer owes. You can type the amount manually or use the keypad to add items from your catalog if you have one set up in Square.
Once the amount is entered, tap "Charge" or "Next" to move to the payment screen. Hand the phone or tablet to the customer. They can insert their card into the reader, tap it for contactless payment, or swipe it — Square accepts all three methods. The reader beeps and the app shows "Processing" while the transaction goes through.
Within two to three seconds, the screen shows "Payment Approved" or "Payment Declined." If approved, the customer's receipt prints or displays on screen, and the transaction appears in your Square Dashboard immediately. If declined, the app tells you why (insufficient funds, incorrect PIN, card expired) and the customer can try a different card.
When money arrives and what Square charges
Card payments typically deposit into your bank account within one to two business days. Square does not hold the money — the timeline depends on your bank's processing speed, not Square's. Weekends and holidays can add a day or two to the deposit.
Square's fee for in-person card payments is 2.6% of the transaction amount plus 30 cents. That fee is deducted automatically when the money deposits, so if a customer pays $100, you receive $97.40 (100 minus 2.6% minus 30 cents). The fee appears as a line item in your Dashboard under "Fees" so you can see exactly what you paid.
Other payment methods have different rates. Online payments (Card on File or Invoice) cost 2.9% plus 30 cents. ACH bank transfers cost 1% with a $0.30 minimum and $5 maximum per transaction. Cash payments have no fee. Square's pricing page shows the current rates for each method.
Handling declined cards and payment problems
If a card is declined, the Square app displays the reason: "Insufficient Funds," "Card Expired," "Incorrect PIN," or "Issuer Declined." The customer can try a different card, update their PIN, or contact their bank. The declined transaction does not charge the customer and does not appear in your final sales total.
If a payment processes but the customer later disputes it with their bank (called a chargeback), Square notifies you in your Dashboard and gives you a window to respond — usually 7 to 10 days. You can upload a receipt, delivery confirmation, or other proof that the transaction was legitimate. Square reviews your evidence and either sides with you or refunds the customer. Chargebacks are rare for in-person payments because the card reader captures proof that the customer was present.
If you need to refund a payment, open the transaction in your Dashboard, tap "Refund," and confirm. The refund processes back to the customer's card within one to two business days. You do not pay Square's fee again on a refund — the fee from the original transaction is not reversed, but you are not charged twice.
Keeping records and tracking sales
Every payment you take appears in your Square Dashboard under "Transactions." You can filter by date, payment method, or customer name. Each transaction shows the amount, fee, net deposit, and timestamp. Square stores these records indefinitely, so you can look up a sale from months or years ago.
Square also generates reports for taxes and accounting. Under "Reports," you can download a summary of all sales for a date range, broken down by payment method and fees. Many accountants ask for this report when preparing your taxes. You can also export individual receipts or email them to customers directly from the Dashboard.
If you take payments across multiple locations or devices, all transactions feed into one Dashboard. You can see total sales across all your Square readers in one place, making it easy to track business performance.
Taking payments by phone or online without a card reader
You do not always need a card reader. If a customer is not in front of you, you can send them a payment link via text, email, or social media. Open the Point of Sale app, tap "Invoices" or "Payment Links," enter the amount and customer email, and send. The customer clicks the link, enters their card details, and pays. The transaction appears in your Dashboard the same way an in-person payment does, and the fee is 2.9% plus 30 cents instead of 2.6% plus 30 cents.
You can also take payments over the phone by reading the card number to Square's Virtual Terminal (a web-based tool in your Dashboard). This method is less secure than a card reader because the customer's full card number is spoken aloud, so use it only when the customer cannot be present and cannot click a payment link.
Frequently Asked Questions
Do I have to use Square's card reader, or can I use a different one?
Square's Point of Sale app only works with Square's own card readers. You cannot pair it with a reader from another company like Clover or Toast. If you want to use a different payment processor, you would need their app and their reader instead.
What happens if my internet goes down while I'm taking a payment?
Square requires an internet connection to process payments. If your connection drops mid-transaction, the payment will not go through and the customer will not be charged. Once your internet is back, you can retry the payment. Square does not have an offline mode for the Point of Sale app.
Can I take a payment without the customer's card present?
Yes, using a payment link or invoice. You can also take a payment over the phone using the Virtual Terminal, though this method is less secure and carries a higher fraud risk. For regular recurring payments, you can save a customer's card on file in Square and charge it without asking for the card each time.
How long does it take for a refund to show up in the customer's account?
Refunds process back to the customer's card within one to two business days, the same timeline as deposits. The customer's bank may take an additional day or two to post the refund to their account, depending on their processing speed.
What if a customer's card reader is not working or the payment times out?
Try restarting the reader by unplugging it or turning it off and back on. Make sure Bluetooth is enabled on your phone or tablet and the reader is in range. If the reader still will not connect, you can take the payment using a payment link or the Virtual Terminal instead. Contact Square Support if the reader remains unresponsive — they can troubleshoot or send a replacement.