How Does a Square Reader Work?

You may have heard that the Girl Scouts are accepting credit cards  now, or maybe you've just overheard an excited friend with a small business talking about finally being able to accept credit cards while they're out and about. While there are many products and services that allow people to do this, the most popular option by far is the Square reader and Square Register app. Made by the Square Up company, they have a great business plan that allows people to start accepting credit card payments with no startup costs. Here are the three easy- and free- steps to getting started with a Square reader:

1. Get the app- Available for iOS devices (iPhone, iPad, iPod Touch) as well as Android devices, the app is called Square Register and yes, it's free. Just download onto your device like you normally do.

2. Set up account- Once you have the app, you can create your account right from it or from Square Inc.'s website. (https://squareup.com) This is also free to do. Once you have your account, you can log onto the app and customize your settings.

3. Get reader- This can be done before or after you get the app, but it doesn't do you much good to have the reader without the app to use it with. When you signed up for your account on Square's website, they also asked for your address so they could mail you your- you guessed it- FREE reader. Now that you have it you're ready to go! Now, what if you decide you need it now? Last minute bake sale at school maybe? You can purchase the readers at various electronics stores and departments like Sam's Club, Apple, etc.

Only an inch in size, this little guy can make a big impact for portable businesses.

What's the catch, you ask? How are they making any money? Square keeps 2.75% of all credit card transactions made with their app. That means that if you charge someone $10 for a dozen cupcakes, Square will keep 27.5 cents of it. That's it! No other fees or charges. That's why Square has become such a staple to many small businesses around the world.

Practical Tip of the Day:
One of the nice things about the Square Register app is that it also helps you keep your transactions accounted for. What then should you do if someone chooses to pay with cash? No worries! The Square Register can also help you track your cash transactions. Once you enter the price on the main screen, simply tap the $ icon on the top right corner to change it from a credit card transaction to a cash one.