Beginner Getting Started ⏱️ 6 min read

How to Use Square Point of Sale

Learn Square POS setup in simple steps - from account creation to your first sale

✍️ By Chinonye Umezinne

📅 October 5, 2025

👁️ 40 views

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Steps

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Tools

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6 min

Read Time

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Key Points

Starting a business is a big step, and one of the most important parts is getting paid. You need a system that’s simple, trustworthy, and quick to set up. For many new business owners, Square is the answer. With just a smartphone and a small card reader, you can start accepting payments right away.

This guide will show you exactly how to use Square Point of Sale from the beginning — step by step.

Learning how to use Square Point of Sale is simple. You don’t need to be a tech expert to get started. The system helps you go from unboxing your reader to making your first sale in less than 30 minutes. Square replaces expensive cash registers and confusing contracts with one free app and clear, pay-as-you-go fees

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Before You Start

✓ A Smartphone or Tablet - iPhone, iPad, or Android device

✓ Internet Connection - WiFi or mobile data

✓ Bank Account - To receive your payments

✓ Business Details - Your business name and address

✓ Email Address - For your account

✓ Valid ID - Government ID for verification

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Video Tutorial

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Step-by-Step Instructions

Sign Up for Your Account

Go to Square’s website or download the app. Click “Sign Up” and enter your email and password. Add your business name and location. Square sends a verification email – click the link to confirm your account. Now you’re ready to start.

💡 Note: Use a strong password with letters and numbers. Turn on two-factor authentication to keep your account safe.

Connect Your Bank Account

Open Square Dashboard and go to “Account & Settings.” Click “Bank Accounts” then “Add Bank Account.” Enter your bank routing number and account number. Square sends two small deposits to verify your bank. Check your bank in 2-3 days and enter the amounts in Square.

💡 Note: Use a business bank account if possible. Square transfers money to your bank in 1-2 days after each sale.

Download the App

Open App Store (iPhone) or Google Play (Android). Search “Square Point of Sale” and tap Install. Open the app and sign in with your email and password. Allow the app to access your camera and location – this helps process payments and send receipts.

💡 Note: Make sure your phone has enough storage space. Keep your phone updated for all features.

Get Your Card Reader

Order a card reader from your Square Dashboard under “Hardware.” Square offers a free magstripe reader or you can buy the contactless reader ($49) for chip and tap cards. Connect it via Bluetooth – go to Settings > Hardware > Connect a Reader. Turn on your reader and select it from the list to pair.

💡 Note: Charge your card reader fully before using it. Keep it close to your phone (within 15 feet) for good connection.

Add Your Products

In the app, tap the menu and select “Items.” Tap “+” to add products. Enter the product name, price, and category. Add photos if you want. Create items for everything you sell. Organize them into categories like “Drinks,” “Food,” or “Services” to make checkout faster.

💡 Note: Start with your top 10-15 products. You can add more items later. Use simple names that are easy to find quickly.

Configure Tax Settings

Go to Settings > Taxes in your app. Tap “Create a Tax” and enter your local sales tax rate. Name it (like “Sales Tax”) and choose if it applies to all items. Square automatically calculates tax on every sale.

💡 Note: Check your city's tax rate online or ask your accountant. Different products might have different tax rates in your area.

Set Up Receipt Options

Go to Settings > Receipts. Add your business logo and contact info. Choose to send digital receipts by email or text. If you have a receipt printer, connect it through Hardware settings. Test print a receipt to make sure it works.

💡 Note: Digital receipts save paper and help you collect customer emails. Always offer printed receipts for customers who want them.

Add Team member

If you have staff, go to Settings > Team in Square Dashboard. Click “Add Team Member” and enter their name and email. Give them a 4-digit PIN to access the system. Set their permission level – full access or limited access. Each person can clock in and out in the app.

💡 Note: Only give manager access to refunds and reports. Remove employees who leave your business immediately.

Test a Payment

Before selling to real customers, test the system. Add a test item for $0.01. Select it and tap “Charge.” Use your own card to complete the payment. This shows you how transactions work. Try chip, tap, and swipe payments. Refund yourself right after.

💡 Note: Practice processing refunds during your test. Know where all buttons are before your first real customer.

Process Real Customer Payments

You’re ready for real sales! When a customer checks out, select their items. The total appears on screen. Tap “Charge” and choose payment method. Customer inserts, taps, or swipes their card. Payment processes in 2-3 seconds. You’ll see a green checkmark when approved. Offer a receipt and you’re done.

💡 Note: Always confirm payment is approved before the customer leaves. Check your Dashboard daily to track sales and monitor performance.

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Key Takeaways

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Free to Start

You don't pay monthly fees. It's free to download and use. You only pay 2.6% + 10¢ per card transaction. This makes it perfect for small businesses and new stores.

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Quick 20-Minute Setup

You can set up everything in 20 minutes and start taking payments immediately. The system is easy to understand - no technical skills needed.

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Automatic Money Transfers

Square automatically sends money to your bank. After you process payments, funds arrive in 1-2 business days. You don't request transfers - everything happens automatically.

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Works Without Internet

If your internet stops working, the system still works offline. You can process up to $200 per transaction. Payments sync when internet comes back. You never lose sales.

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Pro Tips

✨ Pro Tip

Put your best-selling items in a "Favorites" category on your main screen. This makes checkout super-fast during busy times.

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Save customer information to track their purchases. This helps you remember what they buy and makes repeat orders faster.

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Turn on low-stock alerts. The app tells you when products are running low so you can reorder on time.

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Look at your Dashboard sales reports every day. This helps you understand which products sell best and when you're busiest.

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If you run a service business, turn on tipping. Customers can add tips right on the payment screen, which increases your team's earnings.

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Common Mistakes to Avoid

✕ Skipping Security Setup

Not turning on two-factor authentication when you first start.

Instead: Go to Settings > Security and turn on two-factor authentication now. It takes 2 minutes and protects your money.

✕ No Test Transaction

Starting to sell without testing the system first.

Instead: Always test with 2-3 practice transactions before opening. Test all payment types and practice refunds.

✕ Wrong Product Names

Using confusing abbreviations or random names for items.

Instead: Use clear, full names for all products. Write "Large Coffee" not "Lrg Cof." Keep names consistent.

✕ Wrong Tax Rate

Not setting up tax correctly in the beginning.

Instead: Look up your exact local tax rate online. Enter it correctly in settings. Check it every few months because tax rates change.

✕ Ignoring Updates

Not updating the app when new versions come out.

Instead: Turn on automatic updates for the app. Check for updates weekly if automatic updates aren't available.