How To Use Square: A Walkthrough For First-Time Sellers

TL;DR: The first step in learning how to use Square is to set up your Square account and bank. Then you’ll need the POS app, products, taxes, and checkout. You can start with Tap to Pay on a compatible smartphone or a Square Reader, Terminal, Stand, or Register, depending on your checkout needs.

Using Square for the first time is mostly a setup job. Taking the card payment itself is the short part.

Before that first customer pays, Square needs to know what you sell, what it costs, whether tax applies, how you want to take the payment, what the receipt should show, and where the money should go afterward.

You do not need to finish every setting in Square Dashboard before opening for business. Get that basic sale working first. The rest of Square can wait.

What You Need Before You Start Using Square

You can create the account before buying any Square hardware.

For a U.S. Square setup, have your personal and business information ready for verification, plus the bank account you plan to use for transfers. You will also need a supported phone, tablet, or Square device once you move on to the POS. Square requires the account owner to complete the initial setup.

It also helps to have the first few products or services and their prices ready. Do not worry about building the perfect catalog yet. The products that are actually going through the POS are the ones worth setting up first.

The same goes for hardware. A phone may be enough. Buying a full Register before deciding how checkout will work is doing the expensive part first.

Step 1: Create And Set Up Your Square Account

Start with the Square account and follow the onboarding questions for your business structure.

Use the legal details that belong to the person or business opening the account. Square verifies seller information as part of running a payments account, and it can ask for additional information or documents if it cannot complete the check from what was entered.

Once you are in, there are two parts of Square you will see often.

Square Dashboard is the back office. Banking, products, reports, account settings, and other administrative work live there.

Square Point of Sale is where the checkout happens.

There are plenty of other Square tools, but they do not all need attention before the first sale.

Step 2: Link Your Bank Account And Set Up Transfers

Selling something and getting that money into your bank are separate parts of the Square setup.

For standard transfers, link a transactional bank account that allows Square to both credit and debit it. Prepaid cards and online-only accounts such as PayPal are not supported as the linked bank account.

In the Square Dashboard, the current path is:

Settings > Account & Settings > Banking > Bank Accounts

Plaid can link a supported bank immediately. Manual verification is slower and may take up to 4 business days (excluding weekends and holidays). You can still take payments while manual verification is pending, but those funds stay in the Square balance until the bank account is verified.

Square then gives you a choice over transfer speed.

Transfer	Current U.S. Fee	Timing
Standard	Free	As soon as the next business day
Instant	1.95%	On demand for eligible funds
Same-day	1.95%	Automatic scheduled transfer

Prices were last checked on 24th August, 2026. A new seller does not automatically need instant transfers. If next-business-day deposits work for the business, the standard schedule avoids another fee. Square POS system cost is easier to judge when transfers, card rates, hardware, and plan fees are counted together instead of treated as separate setup choices.

Step 3: Set Up The Square Point Of Sale App

Download Square Point of Sale and sign in with the Square account you just created.

Square currently requires iOS 16 or later for supported Apple devices and Android OS 7 or later for supported Android devices. Those requirements cover the POS app itself. A particular Reader or Tap to Pay setup may have its own requirements.

Keep the app current before pairing hardware. If you skipped Square’s setup guide on the first login, it is available again under More > Support > Setup guide.

Choose The Right Square POS Mode

One thing that can catch a returning Square user off guard is the current POS app. It now has several preconfigured modes.

• Standard is the regular Square Point of Sale setup.
• Retail brings in Square for Retail features.
• Bookings uses Square Appointments.
• Services uses Square Invoices.
• Full service, Quick service, and Bar use Square for Restaurants features. Those restaurant modes are not available on iPhone or Android phones or tablets.

These are not feature packs that can all be switched on inside one screen. Square does not combine features from several modes into one mode. You switch modes when you need a different workflow.

If all you need today is a straightforward checkout, Standard is the uncomplicated starting point.

Step 4: Add Your Products Or Services

You can skip the catalog and type a custom amount into Square. That works for an occasional one-off charge. It gets clumsy when the same products are being sold again and again.

For regular items, open More > Items > All items. Square’s item setup can hold prices, variations, modifiers, stock information, and the other details used at checkout and in reporting.

A small catalog does not need much ceremony. Get the name and price right. Add the SKU or inventory tracking if you use it. Then move on.

If inventory is tracked, selling the item through Square can reduce the quantity on hand. That is much more useful than trying to remember later which counter sales need to be deducted from stock. If Shopify also holds the online catalog, connecting Shopify and Square can help keep inventory aligned between the two systems.

Service businesses can use Square’s service setup rather than forcing appointments into a product catalog. And when something really is a one-off charge, use the checkout keypad instead of creating a throwaway item just to use it once.

Set Up Taxes, Discounts, And Modifiers

Check this before money starts moving.

Square supports automatic and manual sales-tax configurations. Taxes can be added on top of the item price or included in it, applied to selected items, and applied to custom amounts. The tax Square calculates depends on the setup you give it, so the correct tax treatment still needs to be configured for the business.

Discounts are simpler. Set up the discounts that are actually used at checkout and leave the rest alone.

Then check whether a product needs variations or modifiers.

A variation is a fixed version of the item, such as a small or large size.

A modifier is a choice made during the sale, such as adding cheese to a burger. Square treats these differently, so using the right one keeps the item easier to ring up later.

Step 5: Choose How You’ll Accept Payments

This is where Square can stay very small or turn into a full counter setup.

Current U.S. card-present processing rates are 2.6% + 15¢ on Square Free, 2.5% + 15¢ on Square Plus, and 2.4% + 15¢ on Square Premium. Manual entry and Card on File are 3.5% + 15¢ across those plans.

The hardware depends on how the customer is paying and where the checkout is happening.

1. Tap To Pay

If you already have a compatible phone, Tap to Pay may be all you need to start. The customer taps a contactless card or supported mobile wallet against the phone. There is no separate Reader to pair or charge.

On iPhone, Square currently requires an iPhone XS or newer, the latest iOS version, a passcode, automatic date and time settings, and a stable internet connection. Tap to Pay on iPhone does not work on iPad.

Tap to Pay on Android requires a supported NFC device. Square’s Android Tap to Pay support starts at Android 9 on compatible models.

There is one practical catch with both: Tap to Pay does not work offline. For a seller working inside a shop with reliable internet, that may never become an issue. Someone taking payments at markets or temporary venues has more reason to think about it before relying on the phone alone.

2. Square Reader

Square Reader separates the card interaction from the phone or tablet.

The current Square Reader for contactless and chip is $59 in the U.S. and accepts tap and chip payments. The Reader listed in Square’s current hardware range is the second-generation model.

That generation matters if you are shopping for used Square gear. Offline support differs across older Readers. Square Reader for contactless and chip first-generation versions 1 and 2 do not support offline card payments, while the current second-generation Reader does.

Square also sells the separate Reader for magstripe. The first magstripe Reader is currently free under Square’s account offer, with additional readers priced separately.

3. Square Terminal, Stand, Or Register

A phone and Reader can handle plenty of checkouts. A fixed counter is where the larger Square hardware starts to earn its space.

Hardware	Current U.S. Price	Setup
Square Terminal	$299	Standalone POS with receipt printer
Square Stand	$149	Countertop POS built around a compatible iPad
Square Register, 2nd generation	$899	Dedicated POS with seller and customer displays

Square Terminal is self-contained and has a receipt printer built in.

Square Stand uses a compatible iPad, which is not included in that $149 hardware price.

Square Register, 2nd generation is the dedicated countertop option. Tap and chip acceptance are built in. Swipe payments need a separate Square Reader for magstripe.

There is no prize for starting with the biggest one. If customers can pay comfortably through a phone or Reader, that may be the better first setup.

Step 6: Set Up Your Checkout

Now look at the POS as the person taking the payment will see it.

Square lets you change which payment methods appear at checkout. Remove the ones you never use instead of leaving every possible tender on the screen.

The point is not cosmetic. When there is a queue at the counter, finding the right payment button should not require scanning through irrelevant choices.

Configure Tips And Receipts

Tips need a deliberate setting rather than whatever happens to be on by default.

If you accept them, open More > Settings > Checkout > Tipping and configure the tip choices used by the business.

Then look at the receipt flow.

Square stores receipt settings under Settings > Checkout > Signature and receipt. You can choose whether the receipt screen appears after checkout. Those receipt settings are local to each POS device, so changing one device does not automatically fix another device at the same location.

That is worth knowing before setting up a second register and wondering why checkout behaves differently.

Check Your Business And Receipt Details

Run through an actual receipt before a customer needs one.

Check the business name, contact details, location, return information, and any text the customer receives after the sale.

Paper receipts depend on the hardware being used. Square Terminal already has a printer. A phone, tablet, Reader, or Stand setup needs compatible printing hardware if paper receipts are part of the checkout.

Step 7: Run A Test Sale

Perform a trial sale before making an actual card transaction.

Place one of your regular products in the shopping basket. Note the price. If the product has a modifier, apply one. Check tax, discount, tips, payments, and the receipt screen.

If you also take custom charges, test the keypad flow while you are there. Then stop before the payment.

There is no need to create a real card transaction just to find out whether the tax or tip screen looks right. Square does not return the original processing fee when a card payment is later refunded.

Step 8: Take Your First Payment With Square

The first real Square payment should now feel fairly uneventful. That is a good sign.

Ring Up The Sale

Open Checkout and add what the customer is buying.

Check the quantity and any variations or modifiers. If a discount applies, add it. Make sure the total looks right before tapping Charge.

For a sale that is not in the item library, enter the amount through the keypad instead.

Accept The Payment

The next move depends on the setup.

With Tap to Pay, the customer taps the card or phone against your compatible phone.

With Square Reader for contactless and chip, the customer taps or inserts the card.

Terminal, Stand, and Register use their own connected payment setup.

Whatever hardware is being used, wait for Square to confirm that the payment has completed. A card touching the Reader is not the same thing as an approved transaction.

Manual card entry is there when it is needed, but the current U.S. rate is higher than the standard card-present rate. If the card and customer are at the counter, use the normal tap, dip, or swipe route.

Send Or Print The Receipt

Once Square approves the sale, deal with the receipt according to the checkout settings.

You can send a digital receipt to the customer. A printed receipt needs supported printing hardware.

Then move on to the part new sellers often skip: make sure the transaction actually landed where it should.

What Happens After Your First Square Sale?

After the first payment, check that the transaction appears in Square, any tracked stock has updated, and the transfer is going to the right account. Square reviews often separate the easy checkout experience from the parts sellers notice later, such as fees, support, delayed transfers, account reviews, and payout timing.

You can review the payment in Transactions from Square Point of Sale or Square Dashboard, where you can also resend a receipt or start a refund. If checkout behaved unexpectedly, check here before charging the customer again.

For payouts, standard transfers can arrive as soon as the next business day. Instant and same-day transfers are faster options for eligible funds and currently cost 1.95%. If a transfer is late, check its status, bank verification, cutoff time, weekends or holidays, and any pending Square account review.

Common First-Time Square User Mistakes To Avoid

Most early Square problems are setup problems. The card reader is rarely the complicated bit.

1. Buying Hardware Before Checking The Device

Do not assume that any iPad works with Square Stand or that an old Reader has the same support as the current model.

Check Square’s compatibility information for the exact device and hardware generation before ordering, especially when buying used equipment.

2. Picking A POS Mode Because It Sounds More Advanced

Retail mode is not Standard mode with extra features switched on. Restaurant, Bookings, Services, Retail, and Standard each change the POS workflow.

Start with the one that corresponds to the type of selling you do. Changing it later will be easier than learning how to check out for something you don’t do.

3. Finding The Tax Problem After The Sale

Just because the item is priced correctly does not necessarily mean that its total will be correct because of a bad tax structure.

Check whether the tax is additive or included in the price, which items it applies to, and whether custom amounts should be taxed before taking live payments.

4. Using Manual Card Entry As The Normal Checkout

Typing a card number works, but Square charges more for it than for an ordinary card-present payment on current U.S. plans.

Keep it for the situations that actually need manual entry.

5. Setting Up The Seller Screen And Forgetting The Customer

Walk through the sale from the other side too.

Check the total, tip prompt, payment instructions, receipt choice, and business information the customer sees. These are small details until one of them is wrong in the middle of a busy checkout.

6. Assuming Square Works Offline The Same Way Everywhere

It does not.

Offline card payments are available on supported Square hardware and POS modes, but Tap to Pay on iPhone, Tap to Pay on Android, manually entered cards, and Services mode do not support offline card payments. Some older Reader versions are excluded as well.

If the business regularly sells where connectivity is poor, check the exact hardware before depending on offline mode.

7. Clearing The App While Offline Payments Are Pending

This one can cost real money.

Square stores support offline payments on the device until they are uploaded. While those payments are pending, do not sign out, delete the Square POS app, switch modes, switch locations, or factory reset the device. Square warns that doing so can permanently lose the pending payments.

Pending offline transactions will expire if you don’t upload them within 72 hours. Square recommends reconnecting your device as soon as possible, preferably within 24 hours.

Your First-Day Square Checklist

Before you start putting regular customer payments through Square, make sure the pieces that can affect the money are settled.

Once your first transaction is completed, verify it in the Transactions section and any inventory changes that you expected.

That is enough for day one. Team permissions, loyalty, marketing, more detailed inventory work, and other Square tools can be added when the business actually reaches them. If Shopify later becomes the online store while Square stays at the counter, Square Integration & Sync can connect products, inventory, eligible Square orders, customer records, and gift-card workflows between the two systems.

FAQs On How To Use Square

Conclusion

The first installation of Square is complete if you have figured out how to ring up the correct product, bill the right price, provide the customer with the correct receipt, and locate the transaction.

Check your first transaction before moving on to the next steps in the Dashboard. If inventory tracking is important to your business, make sure that the quantities are transferred. If the funds are being moved from Square to your bank, make sure that everything matches what you expect.

Once you have installed the system, let it run for a while before adding anything else to it. Install any additional equipment, POS mode, and/or additional features only if your business requires them.