What You Need Before You Start

Square is a payment processor that lets you accept credit cards, debit cards, and digital wallets in person or online. To sign up, you need a few things ready: a valid government ID, your Social Security number or EIN (Employer Identification Number), a business bank account, and basic information about your business. The whole process takes about 10 to 15 minutes online, and Square will tell you within minutes whether you're approved.

Square charges different rates depending on how you take payments. In-person card readers cost a flat 2.6% plus 10 cents per transaction. Online payments cost 2.9% plus 30 cents. Cash App transfers and invoices have their own rates. You don't pay a monthly fee just to have an account — you only pay when you process a payment.

Before you begin, decide which way you'll actually take payments: with a card reader at a physical location, through an online checkout link, by sending invoices, or some combination. This affects which Square tools you'll set up first, though you can add more later.

Key Takeaways

  • Square's signup happens entirely online and takes 10 to 15 minutes, with approval usually coming within minutes.
  • You need a government ID, Social Security number or EIN, and a business bank account to complete signup.
  • Square charges per-transaction fees (2.6% plus 10 cents for in-person, 2.9% plus 30 cents for online) but no monthly account fee.
  • After approval, you choose which payment tools to set up first: a card reader, online checkout, invoices, or all three.
  • Your first payment can process within one business day, though funds typically arrive in your bank account within two business days.

Creating Your Square Account Online

Go to squareup.com and click "get your free guide" or "Sign Up". You'll land on a page asking for your email address and a password. Use an email you check regularly — Square will send you receipts, settlement reports, and important account notices there. Create a password at least 8 characters long with a mix of letters and numbers.

Next, Square asks what type of business you are: sole proprietor, LLC, corporation, or nonprofit. This matters because it determines what tax documents Square will ask for later. If you're self-employed and don't have a separate business entity, choose "Sole Proprietor". If you've registered your business as an LLC or corporation, choose that instead.

Then you'll enter your business name, the country where you operate, and your phone number. Use the phone number you want Square to contact you on — this is where they'll send verification codes if you ever need to reset your password or confirm a large transaction.

Providing Your Identity and Bank Account Information

Square now asks for your full legal name, date of birth, and the last four digits of your Social Security number (or your full EIN if you're a business entity). Have your government ID in front of you — a driver's license, passport, or state ID. Square doesn't upload your ID at this stage, but it will verify the information matches what's on file with the IRS.

Next comes your business bank account. Enter the routing number and account number from a check or your bank's website. This is where Square will deposit the money from your sales. Square will make two small test deposits to this account (usually under $1 each) within one to two business days. You'll need to log into your bank and tell Square what those amounts were to confirm you own the account. This step prevents fraud and usually takes less than five minutes once the deposits arrive.

If you don't have a business bank account yet, open one before you finish Square signup. Most banks can open an account online in 10 minutes. You don't need to wait for the debit card to arrive — you just need the routing and account number, which your bank will give you when ready.

Answering Square's Business Questions

Square asks several questions about your business to assess risk and determine your processing limits. You'll enter your average monthly sales volume, the highest single transaction you expect to process, and what you sell (retail, services, online, food, etc.). Be honest here — Square uses this to set your initial limits and flag unusual activity later. If you say you'll do $500 a month but suddenly process $5,000, Square may freeze the transaction pending review.

You'll also answer whether you've had a merchant account before, whether you've been declined by a payment processor, and whether you have any outstanding judgments or liens. Square is checking your history for fraud risk. If you answer yes to any of these, Square may ask follow-up questions or take longer to approve you, but it doesn't automatically disqualify you.

Finally, Square asks for your business address. This should be where you actually operate — the physical location where you take payments or where your business is registered. Square may verify this address by mail or phone call, especially if you're processing high volumes.

What Happens After You Submit

Once you hit submit, Square runs a background check and verifies your information against IRS records. Most approvals happen within minutes. You'll see a confirmation screen and receive an email saying your account is active. If Square needs more information, it will email you within a few hours asking for specific documents — usually a copy of your ID, a business license, or a recent bank statement.

If you're approved, you can start taking payments when ready. If you chose to use a physical card reader, Square will ship one to you free of charge — it usually arrives within 5 to 7 business days. In the meantime, you can take payments online through Square's checkout link or by sending invoices.

If Square declines you, the email will explain why. Common reasons include mismatched information (your name doesn't match your ID), a history of chargebacks or fraud, or high-risk business type. You can reapply after 30 days, or contact Square support to ask whether you can provide additional information to overturn the decision.

Setting Up Your First Payment Method

After approval, log into your Square account at squareup.com. You'll land on your dashboard. The first thing to do is choose which way you want to take payments. If you want to accept cards in person, go to "Hardware" and select the card reader that fits your business — the Square Reader (the small white square), the Square Terminal (a full checkout device), or the Square Stand (a tablet holder). Order it and it ships free.

If you want to take payments online, go to "Checkout" and create a payment link. You can send this link to customers via email, text, or social media, and they can pay directly without leaving their browser. If you want to send invoices, go to "Invoices" and create a template with your business name and logo.

You don't have to choose just one. Most businesses use a combination: a card reader for in-person sales, a checkout link for online orders, and invoices for recurring or large purchases. Set up whichever one you need first, then add the others as you grow.

Connecting Your Bank Account and Testing Your First Payment

Before you process real customer payments, Square asks you to verify your bank account. Within one to two business days of signup, Square deposits two small amounts (usually between $0.01 and $0.99 each) into your business bank account. Log into your bank, find these deposits, and note the exact amounts. Then go back to your Square dashboard, find "Bank Account" under settings, and enter those amounts. Square confirms the account is yours and you're ready to process.

Next, process a test payment. If you have a card reader, use a test card number (Square provides these in your settings). If you're using online checkout or invoices, send yourself a payment link and complete a transaction with a real card. This confirms everything is connected and working. The test charge will appear in your Square account but won't be deposited to your bank — Square reverses it automatically.

Once your test payment goes through, you're live. Your first real customer payment can process within minutes. Money from in-person card reader sales deposits to your bank account within two business days. Online payments and invoices may take slightly longer depending on when in the day you process them.

Frequently Asked Questions

How long does it take to get approved?

Most Square approvals happen within minutes of submitting your signup. If Square needs additional documents, it will email you within a few hours and approval usually comes within 24 hours of you providing them. In rare cases, Square may take up to 5 business days to review your process.

What if I don't have a business bank account yet?

Open one before you finish Square signup. Most banks open accounts online in 10 minutes and give you the routing and account number when ready — you don't need to wait for a debit card. If you're in a hurry, some banks like Chime or Square Cash can open accounts even faster.

Can I use Square if I'm self-employed or a sole proprietor?

Yes. You don't need to have registered a business entity. Choose "Sole Proprietor" during signup and provide your Social Security number instead of an EIN. You'll still need a bank account in your name to receive deposits.

What happens if Square declines my process?

Square will email you explaining why. Common reasons include mismatched information, a history of chargebacks, or high-risk business type. You can reapply after 30 days, or contact Square support to ask whether additional information might change the decision.

When does money from my sales actually hit my bank account?

In-person card reader sales deposit within two business days. Online payments and invoices may take slightly longer depending on when you process them. Weekends and holidays don't count as business days, so a sale on Friday may not deposit until Tuesday.