Square Reader is the small card reader that plugs into or pairs with your phone or tablet so you can take card payments through Square's free point of sale app. There are two: Square Reader for magstripe, where your first one is free but it only takes swiped cards, and Square Reader for contactless and chip, which costs $59 and takes chip cards, contactless cards, Apple Pay and Google Pay.
The catch is in that first sentence. The free reader is the one that can't take a chip card or a tap, so a customer who only taps their phone can't pay you with it. If you want chip and tap, it's the $59 reader, or Tap to Pay on your phone with no extra hardware for contactless. All prices here are Square's US prices as of October 2026; UK, Australian and Canadian readers will see different numbers on their local Square site.
The two Square readers side by side
| Reader for magstripe | Reader for contactless and chip | |
|---|---|---|
| Price | First one free, then $10 each | $59 |
| Accepts | Swipe only | Chip, tap, Apple Pay, Google Pay |
| In-person rate | 2.6% + 15 cents per swipe | 2.6% + 15 cents per in-person payment |
| Battery | None, never needs charging | Rechargeable, lasts all day |
| Connects by | USB-C, Lightning or 3.5mm headset jack | Bluetooth (BLE 5.3) |
| Internet | Not needed to process, using Offline Mode | Needed: Wi-Fi, hotspot or cellular data |
Square Reader for magstripe: free, simple and swipe-only
Square's magstripe reader plugs straight into your phone or tablet. Your first one is free, and every extra reader after that is $10, with one free redemption per Square account holder. It comes in three versions to match your device's connection: USB-C, Lightning and a 3.5mm headset jack.
It has two things going for it. It never needs charging, because there's no battery, and it doesn't need Wi-Fi to process payments: Square's Offline Mode in the Point of Sale app lets you take swipes with no internet. Square lists the rate at 2.6% + 15 cents per swipe for Visa, Mastercard, Discover and American Express, with funds as fast as the next business day and no long-term contract.
The limit is plain on Square's own FAQ: it only accepts swiped magstripe card payments. For dip or tap, Square points you to the contactless and chip reader or to Tap to Pay.
Square Reader for contactless and chip: the $59 upgrade
This reader pairs to your phone or tablet by Bluetooth, using BLE 5.3, and Square says it stays connected between sales so you're not re-pairing every time you pick it up. It takes chip cards, contactless (NFC) cards, Apple Pay and Google Pay. It needs charging, but once charged the battery lasts all day, and it comes with a one-year limited warranty.
Square lists two rates on this reader's page: 2.6% + 15 cents per in-person payment, and 6% + 30 cents per Afterpay transaction. That second line is worth noticing if you offer Afterpay, because it's a much bigger slice than a normal card tap. Next-day transfers to your bank are standard, and there are no lock-in contracts or monthly fees.
Unlike the swipe reader, this one needs an internet connection: Wi-Fi, a hotspot or cellular data. Offline payments work for up to 24 hours, but not on the older first-generation readers, the v1 and v2 models, so check which one you've got before you rely on offline mode at an outdoor event.
Tap to Pay: when you don't need a reader at all
Square also lets you switch on Tap to Pay on iPhone or Tap to Pay on Android inside the Square app. Your phone becomes the contactless reader, so customers can tap a card or their phone against it. Square suggests it to magstripe reader owners who want to take tap payments too. It won't take a chip card that has to be inserted, which is where the $59 reader still earns its place.
Accessories and security
For the contactless and chip reader, Square sells a Bosstab dock, an extended 6.5 ft USB-C cable for the second-generation reader, and cases for an iPad mini and a 10.9 inch iPad, so the reader can sit on a counter instead of in your pocket.
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On security, Square says card details are encrypted at the moment of swipe, and data security, payment-dispute management and fraud prevention come at no extra cost.
Getting started with a Square reader
- Pick the reader that matches the cards you expect: swipe only, or chip and tap.
- Download the free Square Point of Sale app.
- Sign in, then plug in the magstripe reader or pair the contactless and chip reader by Bluetooth.
- Take your first payment.
- Add a dock or case if the reader is going to live on a counter.
My verdict
If you only ever swipe cards, the free reader is a fine way to start, and it's hard to argue with no battery and no Wi-Fi. But it can't take a chip or a tap, so if your customers pay that way, spend the $59 on the contactless and chip reader, or switch on Tap to Pay on your phone if contactless is all you need. Before you choose, read what Square charges per payment, and if you're still deciding between providers, my SumUp vs Square comparison is worth five minutes.
Frequently asked questions
Is the Square reader free?
The Square Reader for magstripe is free for your first one, then $10 for each extra reader, as of October 2026. It only takes swiped cards.
How much does the Square chip and tap reader cost?
Square lists Square Reader for contactless and chip at $59 on its US page.
Does the Square reader take chip and tap?
The contactless and chip reader does: chip cards, contactless cards, Apple Pay and Google Pay. The magstripe reader only takes swipes.
What does Square charge per swipe?
Square lists 2.6% + 15 cents per swipe on the magstripe reader and 2.6% + 15 cents per in-person payment on the contactless and chip reader. Afterpay transactions are 6% + 30 cents.
Does the Square reader need Wi-Fi?
The magstripe reader doesn't need Wi-Fi to process payments, thanks to Offline Mode. The contactless and chip reader needs Wi-Fi, a hotspot or cellular data, with offline payments for up to 24 hours except on the first-generation v1 and v2 readers.
How does the Square magstripe reader connect?
It comes in three versions to match your device: USB-C, Lightning and a 3.5mm headset jack.
