Square Reader for Contactless and Chip (2nd Generation)
$59.00
Jason Feemster
Square Reader for Contactless & Chip Review: Price & Features
Updated January 2026 • Verified Q1 2026
Table of Contents
- 1 Pros and Cons
- 2 Square Reader for Contactless & Chip Pricing
- 3 Who This Is For
- 4 Hardware Specifications
- 5 Key Features
- 6 Competitor Comparison
- 7 Square Software Plans
- 8 FAQs
- 8.1 How do I connect the Square Reader to my phone?
- 8.2 What payment types does the Square Reader accept?
- 8.3 Can I use the Square Reader without internet?
- 8.4 How long does the battery last?
- 8.5 Are there monthly fees to use the Square Reader?
- 8.6 What's the difference between the 1st and 2nd generation reader?
- 8.7 Can I use a different payment processor with the Square Reader?
- 9 Bottom Line
The Square Reader for Contactless and Chip (2nd Generation) is a compact Bluetooth card reader that lets you accept chip cards, contactless (NFC) payments, Apple Pay, and Google Pay anywhere you have your phone or tablet. At $59 with no monthly fees, it’s one of the most popular mobile payment solutions for small businesses, pop-up shops, farmers markets, and service providers.
The 2nd generation model (released 2023) features upgraded Bluetooth 5.3 connectivity, longer battery life, USB-C charging, and enhanced security. It also includes a magstripe slot for swiping cards when needed.
Pros and Cons
- No monthly fees
- Accepts chip, tap, and swipe payments
- Offline mode (up to 24 hours)
- All-day battery with USB-C charging
- Free POS app with inventory and reports
- Fee increased to 2.6% + 15¢ (was 10¢)
- No built-in receipt printer
- Locked to Square processing
- Bluetooth range ~10 feet
- No PIN pad for debit
Square Reader for Contactless & Chip Pricing
| Item | Price | Details |
|---|---|---|
| Square Reader (2nd Gen) | $59 | Bluetooth-enabled reader for chip and contactless payments |
| In-Person Transaction Fee | 2.6% + 15¢ | Per tap, dip, or swipe |
| Keyed-In / Card on File | 3.5% + 15¢ | Manually entered card numbers |
| Afterpay (BNPL) | 6% + 30¢ | Buy now, pay later transactions |
| Instant Deposit Fee | 1.75% | Optional same-day transfers (standard deposits free) |
| Monthly Fee | $0 | No subscription required for basic POS |
Prices subject to change. Verify current pricing at Square’s official site.
Who This Is For
✅ Good Fit
- Pop-up shops, farmers market vendors, and food trucks
- Service providers who take payments on-site (contractors, cleaners, photographers)
- Small retailers wanting a low-cost mobile payment option
- Businesses that want to test card payments before investing in larger hardware
- Anyone who needs a backup reader for their main POS
❌ May Not Be Ideal For
- High-volume businesses (consider Square Terminal or Square Register)
- Businesses that need PIN debit or printed receipts built-in
- Merchants who want to negotiate processing rates or use a different processor
Hardware Specifications
| Specification | Details |
|---|---|
| Payment Types | EMV chip, Contactless (NFC), Apple Pay, Google Pay, Samsung Pay, Magstripe (swipe) |
| Connectivity | Bluetooth LE 5.3 |
| Battery | All-day battery; 20% more transactions per charge vs. 1st gen |
| Charging | USB-C (cable included); ~2 hours to full charge |
| Offline Mode | Yes, up to 24 hours without internet |
| Wireless Range | Up to 10 feet from paired device |
| Compatibility | iOS 16.0+ and most Android 7.0+ devices |
| Warranty | 1-year limited warranty |
| Color | White |
Key Features
Accept All Major Payment Types
The Square Reader accepts EMV chip cards, contactless NFC cards, Apple Pay, Google Pay, and Samsung Pay. It also has a magstripe slot on the side for swiping cards when chip or tap isn’t available.
Offline Payments
Continue accepting payments for up to 24 hours without an internet connection. Payments are stored locally and processed automatically when your device reconnects. This is particularly useful for outdoor events or locations with spotty Wi-Fi.
Free Square POS App
The reader works with Square’s free Point of Sale app, which includes inventory management, sales reporting, digital receipts, tipping, and invoicing. Specialized apps like Square for Restaurants, Square for Retail, and Square Appointments are also compatible.
Improved 2nd Generation Design
The 2nd generation model features Bluetooth 5.3 for faster, more reliable pairing. The battery lasts 20% longer than the 1st generation, and the USB-C charging port replaces the older micro-USB. Once paired, the reader stays connected to your device so you don’t need to re-pair every day.
Security
All transactions are encrypted end-to-end. Square provides 24/7 fraud prevention, payment-dispute management, and PCI compliance at no additional cost.
Competitor Comparison
| Feature | Square Reader | SumUp Plus | PayPal Zettle | Clover Go |
|---|---|---|---|---|
| Hardware Price | $59 | $54 | $29 (first), $79 (additional) | $199 |
| In-Person Fee | 2.6% + 15¢ | 2.6% + 10¢ | 2.29% + 9¢ | 2.3%–2.6% + 10¢ |
| Monthly Fee | $0 | $0 | $0 | $0–$29.95+ |
| Offline Mode | Yes (24 hours) | Yes | No | Yes |
| Magstripe Slot | Yes | Yes | No | Yes |
| Accepts Apple/Google Pay | Yes | Yes | Yes | Yes |
| Free POS App | Yes | Yes | Yes | Limited |
| Best For | Mobile sellers, pop-ups | Budget-conscious sellers | PayPal/Venmo users | Clover ecosystem users |
Key takeaways: PayPal Zettle has the lowest transaction fee (2.29% + 9¢) and cheapest first reader ($29), but lacks offline mode. SumUp Plus costs $5 less than Square and has a lower per-transaction fee (2.6% + 10¢ vs 2.6% + 15¢).
Clover Go costs significantly more ($199) and requires a software plan for full features. Square stands out for its robust free POS app and 24-hour offline mode.
Square Software Plans
The Square Reader works with Square’s free POS app, but paid plans offer lower transaction rates:
| Plan | Monthly Fee | In-Person Rate | Best For |
|---|---|---|---|
| Free | $0 | 2.6% + 15¢ | Low-volume sellers, startups |
| Plus | $49 | 2.5% + 15¢ | Growing businesses needing advanced inventory |
| Premium | $149 | 2.4% + 15¢ | Multi-location or high-volume businesses |
| Custom | Contact Sales | Negotiated | $250K+ annual processing |
FAQs
How do I connect the Square Reader to my phone?
Charge the reader, then open the Square POS app on your phone or tablet. Go to Settings > Card Readers > Connect a Reader and select “Contactless and Chip Reader.” Follow the on-screen prompts. The reader pairs via Bluetooth and stays connected to your device, so you won’t need to re-pair each day.
What payment types does the Square Reader accept?
The Square Reader accepts EMV chip cards, contactless (NFC) cards, Apple Pay, Google Pay, Samsung Pay, and magnetic stripe cards (swipe). You can also manually key in card numbers through the app for an additional fee (3.5% + 15¢).
Can I use the Square Reader without internet?
Yes. Offline mode lets you accept payments for up to 24 hours without Wi-Fi or cellular data. Transactions are stored on your device and processed automatically when you reconnect. You’re responsible for any declined payments that fail to process after reconnecting.
How long does the battery last?
The 2nd generation Square Reader has an all-day battery that lasts 20% longer than the 1st generation. A full charge takes about 2 hours via the included USB-C cable. Four LED lights indicate battery status.
Are there monthly fees to use the Square Reader?
No. The basic Square POS app is free with no monthly subscription. You only pay the transaction fee (2.6% + 15¢) when you process a payment. Optional paid plans ($49–$149/month) offer lower transaction rates and advanced features.
What's the difference between the 1st and 2nd generation reader?
The 2nd generation has Bluetooth 5.3 (faster pairing), longer battery life, USB-C charging, and enhanced security. Both generations accept the same payment types and work with the same Square apps. Square no longer sells the 1st generation.
Can I use a different payment processor with the Square Reader?
No. Square hardware only works with Square payment processing. If you want to choose your own processor or negotiate rates, you’ll need hardware from a different provider.
Bottom Line
The Square Reader for Contactless and Chip (2nd Generation) is a reliable, affordable card reader for mobile businesses and small sellers. At $59 with no monthly fees, it’s one of the easiest ways to start accepting card payments. The free Square POS app provides genuine value with inventory tracking, sales reports, and invoicing included.
The main drawbacks are the slightly higher transaction fee (2.6% + 15¢, increased from 2.6% + 10¢ in early 2025) and being locked into Square’s payment processing. If the lowest possible transaction fee is your priority, PayPal Zettle (2.29% + 9¢) or SumUp (2.6% + 10¢) may be better options—though Zettle lacks offline mode, which could be a dealbreaker for outdoor vendors.
For most small businesses, Square’s combination of simple pricing, robust free software, and 24-hour offline capability makes it a smart choice.
Jason Feemster
POS systems expert and founder of POSUSA.com, a trusted industry resource since 2011. With over a decade of hands-on experience testing and reviewing point-of-sale systems, he helps business owners choose solutions that actually fit their needs.
Specification: Square Reader for Contactless and Chip (2nd Generation)
|
User Reviews
Be the first to review “Square Reader for Contactless and Chip (2nd Generation)”
$59.00
There are no reviews yet.