What you need before you start

Square requires three things before you can open an account: a valid email address, a phone number, and a way to verify your identity. You'll also need a U.S. bank account (checking or savings) where Square can deposit your money, and a Social Security Number or EIN if you're a sole proprietor or business owner. If you're setting up Square for a brick-and-mortar location, have your business address ready.

Square does not charge a setup fee. You pay only when you process a transaction — currently 2.6% plus 30 cents for online payments, and 2.6% plus 10 cents for in-person card payments using Square hardware. Rates vary slightly if you use different Square products like invoicing or point-of-sale, so check the current pricing on Square's website before you commit.

You do not need to be incorporated or have a business license to open a personal Square account, though Square may ask for one later if your volume grows. If you're taking payments for a sole proprietorship, you can use your Social Security Number. If you're an LLC or corporation, you'll need your EIN.

Key Takeaways

  • Square's signup happens entirely online at squareup.com and takes about 10 minutes; you'll need an email, phone number, and U.S. bank account details.
  • Your bank account is where Square deposits your sales money, usually within one to two business days of a transaction.
  • You can start accepting payments immediately after signup, but Square may hold your first few deposits for verification if your account is brand new.
  • Square charges 2.6% plus 30 cents per online transaction and 2.6% plus 10 cents per in-person card transaction; there is no monthly fee.
  • If Square suspects fraud or unusual activity, they may freeze your account temporarily while they review it, so keep your contact information current.

The signup process step by step

Go to squareup.com and click "Sign Up" in the top right. Enter your email address and create a password — Square will send you a confirmation link to that email, so use one you check regularly. Click the link in the email to verify your address.

Next, Square asks for your phone number and sends a six-digit code via text. Enter that code to verify your phone. Then provide your full name, date of birth, and the last four digits of your Social Security Number (or your full EIN if you're a business). Square uses this to run a background check; it usually completes in minutes, though it can take up to a few days.

Add your U.S. bank account details: the routing number and account number from a check, or log in to your bank through Square's secure portal and let Square pull the information directly. Square will make two small test deposits to that account (usually $0.01 and $0.02) within one to two business days. You'll need to confirm those amounts in your Square dashboard to prove you own the account.

Finally, enter your business address (or home address if you're a sole proprietor) and choose what you'll use Square for — in-person payments, online payments, invoicing, or a combination. You can change this later. Click "Finish" and your account is live.

Connecting your payment hardware

If you're taking in-person payments, you need a Square Reader. The most common is the Square Reader for contactless and chip (costs about $29 one-time), which accepts tap, chip, and swipe cards. You can also use the Square Stand (a full point-of-sale terminal) or the Square Terminal, depending on your business type.

Download the Square Point of Sale app on your phone or tablet, or use the web dashboard at squareup.com. Log in with your email and password. Go to "Settings" and look for "Readers" or "Hardware." Square will walk you through pairing your reader via Bluetooth. The reader connects to your phone or tablet, not directly to the internet, so make sure your device has a strong WiFi or cellular connection.

Test a transaction before your first real sale. Process a card (your own is fine) for a small amount, then refund it. This confirms the reader is working and your account is set up correctly.

How deposits work and when money reaches your bank

Every time a customer pays you with a card, Square deducts its fee and deposits the rest into your linked bank account. For most accounts, this happens within one to two business days. Square calls this the "deposit schedule," and it's automatic — you don't have to request it.

On your first few transactions, Square may hold the deposit for a longer period (up to 7 days) while they verify your account is legitimate. This is normal and does not mean something is wrong. Once Square confirms your account, deposits return to the standard one- to two-day window.

You can see pending and completed deposits in your Square dashboard under "Deposits" or "Financials." Each deposit shows the gross amount, the fees Square charged, and the net amount that hit your bank account. If a customer disputes a charge or requests a refund, Square deducts that from your next deposit, not from your bank account directly.

What happens if Square freezes or closes your account

Square monitors accounts for fraud, unusual patterns, or high chargeback rates. If they suspect a problem, they may temporarily freeze your account while they investigate. You'll receive an email explaining the reason and what information they need from you. Respond quickly with receipts, customer records, or other proof that your transactions are legitimate.

If Square finds no fraud, they unfreeze your account within a few days. If they determine your account violates their terms of service (for example, selling prohibited items or processing payments for someone else without disclosure), they may close it permanently. When an account closes, Square holds your final deposit for 90 days before sending it to your bank account, giving customers time to dispute charges.

To avoid freezes, keep your contact information current, respond to Square's emails immediately, and maintain clear records of what you're selling and who your customers are. If you process high volumes or large transactions, tell Square about it upfront — they're less likely to flag activity they already know about.

Security and fraud protection for your account

Square encrypts all card data and never stores full card numbers on your device or in their system. When a customer pays, their card information goes directly to Square's secure servers, not through your phone or computer. This means even if your device is stolen, the thief cannot access customer payment data.

Enable two-factor authentication on your Square account to protect your login. Go to "Settings," then "Security," and turn on two-factor authentication. Square will send a code to your phone every time someone tries to log in from a new device. This prevents someone who knows your password from accessing your account.

Square also covers you against fraudulent charges made by customers. If a customer disputes a charge they claim they did not make, Square investigates. If the dispute is ruled in the customer's favor, the money comes out of your account, but you're not liable for the chargeback fee itself — Square absorbs that. Keep receipts and proof of delivery for all transactions so you can defend yourself if a dispute arises.

Frequently Asked Questions

How long does it take to get approved after I sign up?

Your account is live immediately after you complete the signup form and verify your email and phone. Square's background check usually finishes within minutes to a few hours, but can take up to a few days. You can start processing payments right away, though your first few deposits may be held for verification.

Can I use Square if I don't have a business license?

Yes. Square does not require a business license to open a personal account. If you're a sole proprietor, you can use your Social Security Number. As your business grows, Square may ask for a license or EIN, but you can start without one.

What if I forget my Square password?

Go to squareup.com and click "Sign In." Click "Forgot Password?" and enter your email address. Square sends a reset link to that email. Click the link, create a new password, and log in. If you don't receive the email, check your spam folder or contact Square support through the help center in your dashboard.

Can I have multiple Square accounts?

You can create separate accounts for different businesses or locations, but each needs its own email address and bank account. Square's terms allow this, but they monitor for abuse. If you're running multiple legitimate businesses, tell Square upfront so they don't flag the accounts as suspicious.

What payment methods does Square accept besides credit cards?

Square accepts Visa, Mastercard, American Express, and Discover cards, plus digital wallets like Apple Pay and Google Pay when customers tap or scan. Square also offers ACH bank transfers and buy-now-pay-later options like Afterpay if you use Square's online checkout or invoicing tools, though these have different fee structures.