Square Payment Methods: How to Accept Money From Your Customers
What Square Payment Methods Are and Why They Matter
Square lets you take money from customers through multiple channels — in person with a card reader, online through a website, by phone, or through a link you text or email. Each method connects to the same Square account, so the money lands in one place and you see all transactions in one dashboard. The payment methods you offer shape how customers can buy from you, which ones actually complete their purchase, and how quickly you get paid.
Square does not require you to use every method. You choose which ones fit your business. A coffee shop might use only the in-person card reader. An online boutique might use only the web checkout. A contractor might use phone payments and email invoices. Understanding what each method does, what it costs, and what happens when a customer uses it helps you decide which ones to set up.
Key Takeaways
- Square accepts cards in person with a physical reader, online through a website checkout, over the phone, and through payment links sent by text or email.
- In-person card payments cost 2.6% plus 10 cents per transaction; online and phone payments cost 2.9% plus 30 cents; payment links cost the same as online.
- Money from in-person card sales deposits within one business day; online and phone payments typically take one to two business days.
- Square also accepts digital wallets like Apple Pay and Google Pay at the same rate as card payments, and ACH bank transfers for a flat fee of 1%.
- You can send a payment link to a customer without a Square account, but you will need an account to receive the money, track sales, issue refunds, or run reports.
In-Person Card Payments With a Square Reader
The most common Square payment method is a physical card reader that plugs into your phone or tablet. Customers insert, tap, or swipe their card, and the payment goes through instantly. Square makes three types of readers: the Square Reader for contactless and chip cards, the Square Reader 7 with a built-in screen, and the Square Stand for a fixed checkout counter. You can use any of them with your Square account.
In-person card payments cost 2.6% of the transaction amount plus 10 cents. A $50 card payment costs $1.30 plus 10 cents, or $1.40 total. This rate applies whether the customer uses a debit card, credit card, or digital wallet like Apple Pay or Google Pay. The money deposits to your bank account within one business day, usually overnight.
You do not need internet to process a card with a Square reader — the reader stores the transaction and sends it when you reconnect. This matters if your internet drops during a busy shift. The reader will hold payments temporarily and sync them once the connection returns.
Online Checkout and Website Payments
If you have a Square Online store or a website with a Square checkout button, customers can pay directly on your site. They enter their card details, billing address, and shipping information, then submit the payment. The transaction processes immediately, and the customer sees a confirmation on screen.
Online payments cost 2.9% plus 30 cents per transaction. A $50 online purchase costs $1.45 plus 30 cents, or $1.75 total. This is higher than in-person because online payments carry more fraud risk — the card is not physically present, so the payment processor charges more. Money from online sales deposits within one to two business days.
Square's online checkout also accepts digital wallets. If a customer has Apple Pay or Google Pay saved in their browser, they can check out in one tap without typing their card number. The rate stays 2.9% plus 30 cents.
Phone Payments and Virtual Terminal
You can take payment over the phone using Square's Virtual Terminal, which is a form you fill out on your computer or phone. You enter the customer's card number, expiration date, and CVV, then submit the payment. This method works when a customer calls to place an order, when you need to collect a deposit before work begins, or when a customer prefers not to enter their card online.
Phone payments cost the same as online payments: 2.9% plus 30 cents per transaction. The money deposits within one to two business days. Phone payments carry the same fraud risk as online payments because the card is not physically present, so the rate is higher than in-person.
Never ask a customer to text or email their card number. Always use the Virtual Terminal or a payment link so the card details stay encrypted and you do not store them yourself.
Payment Links Sent by Text, Email, or Social Media
A payment link is a unique URL that takes a customer to a checkout page. You create the link in your Square account, then send it to the customer however you want — text message, email, Facebook, or a direct message. The customer clicks the link, enters their payment details, and completes the purchase. You can create a link for a specific amount or a general link that lets the customer enter any amount.
Payment links cost 2.9% plus 30 cents, the same as online checkout. Money deposits within one to two business days. Payment links work even if you do not have a website or a Square Online store, and the customer does not need a Square account to pay.
Payment links are useful for invoicing, collecting deposits, or selling to customers who prefer not to visit a website. You can also use them to accept donations, collect membership fees, or take payment for services before you start work.
Digital Wallets and ACH Bank Transfers
Square accepts Apple Pay, Google Pay, and other digital wallets at the same rate as the payment method they use. If a customer taps Apple Pay at your in-person reader, you pay 2.6% plus 10 cents. If they use Apple Pay on your online checkout, you pay 2.9% plus 30 cents. The customer's bank and card details stay with their wallet provider, not with Square.
Square also accepts ACH bank transfers, which means a customer can pay you directly from their bank account instead of using a card. ACH transfers cost a flat fee of 1% with a minimum of 1 cent and a maximum of $5 per transaction. A $100 ACH transfer costs $1. The money takes three to five business days to deposit because ACH is a slower network than card payments.
ACH is useful for large invoices, subscription payments, or customers who want to avoid card fees. You set up ACH through your Square account, and customers can authorize the transfer online or by phone.
Comparing Costs and Deposit Times
The payment method you choose affects both what you pay and how fast you get the money. In-person payments are the cheapest and fastest. Online, phone, and link payments cost more and take longer because the card is not physically present. ACH transfers cost less as a percentage but take the longest because they move through a slower banking network.
| Payment Method | Cost | Deposit Time |
|---|---|---|
| In-person card or digital wallet | 2.6% + $0.10 | 1 business day |
| Online checkout | 2.9% + $0.30 | 1–2 business days |
| Phone payment (Virtual Terminal) | 2.9% + $0.30 | 1–2 business days |
| Payment link | 2.9% + $0.30 | 1–2 business days |
| ACH bank transfer | 1% (min $0.01, max $5) | 3–5 business days |
When you choose which methods to offer, think about your customers' preferences and your cash flow needs. If you need money fast, prioritize in-person payments. If you sell mostly online, the 2.9% plus 30 cents cost is built into your pricing. If you invoice large amounts, ACH saves you money even though it takes longer.
Frequently Asked Questions
Can I accept payments without a Square account?
You can send a payment link to a customer and they can pay without an account. However, you will need a Square account to receive the money, track the transaction, issue a refund, or run reports. A payment link is just a way to collect the payment — the account is where it lands.
What happens if a customer's card is declined?
Square tells you immediately that the payment failed and shows the reason — insufficient funds, expired card, fraud block, or another issue. For in-person payments, the customer can try a different card or payment method. For online or phone payments, you can ask them to update their card details and try again, or offer an alternative method like ACH or a payment link.
Do I have to offer all these payment methods?
No. You choose which methods to set up based on your business. A retail store might use only the in-person reader. A service business might use only payment links and phone payments. You can add or remove methods anytime in your Square account settings.
How long does it take to get paid after a customer pays?
In-person card payments deposit within one business day. Online, phone, and link payments take one to two business days. ACH transfers take three to five business days. Weekends and holidays do not count as business days, so a payment on Friday might not deposit until Monday or Tuesday.
What if I need to refund a customer?
You can refund any payment through your Square account. The refund goes back to the original payment method — a card refund goes back to the card, an ACH refund goes back to the bank account. Refunds usually process within one to three business days, depending on the customer's bank.