Square Reader for Magstripe (Lightning Connector)
$10.00
Jason Feemster
Square Reader for Magstripe (Lightning) Review
Updated January 2026 • Verified Q1 2026
Table of Contents
- 1 Pros vs. Cons
- 2 Square Magstripe Reader Pricing
- 3 Lightning Port: Being Phased Out
- 4 Who This Reader Is Actually For
- 5 Better Alternative: Square Reader for Contactless and Chip
- 6 Features
- 7 Compatibility
- 8 Understanding EMV Liability
- 9 Square Magstripe Reader FAQs
- 9.1 Is the first Square magstripe reader really free?
- 9.2 Can I accept chip cards with this reader?
- 9.3 Can I accept Apple Pay or Google Pay?
- 9.4 What happens if I swipe a chip card?
- 9.5 Will this reader work with my new iPhone 15?
- 9.6 Does this reader need to be charged?
- 9.7 Can I process transactions offline?
- 10 The Bottom Line
The Square Reader for Magstripe (Lightning Connector) is Square’s most basic card reader. It plugs directly into your iPhone or iPad’s Lightning port and accepts swiped payments only — no chip cards, no tap-to-pay, no mobile wallets.
At $10 (or free with a new Square account), it’s the cheapest way to start accepting credit cards. It works well as a backup reader or for the occasional swipe-only transaction, though most businesses will want the Square Reader for Contactless and Chip as their primary device since it accepts chip cards, Apple Pay, and Google Pay.
Pros vs. Cons
- Free with new Square account ($10 otherwise)
- No monthly fees or contracts
- No battery required — powers from your device
- Compact and portable
- Works with any Square POS app
- Next-day deposits (free)
- Good backup for when chip fails
- Swipe only — no chip, tap, or mobile wallets
- EMV liability risk (you pay for fraud)
- Lightning port being phased out (iPhone 15+)
- Less secure than chip transactions
- No contactless/Apple Pay support
- Higher fraud risk than chip readers
- Best suited as a backup device
Square Magstripe Reader Pricing
| Item | Price | Notes |
|---|---|---|
| Square Reader for Magstripe (Lightning) | $10 (or free) | First reader free with new Square account |
| Transaction Fee | 2.6% + 15¢ | Per swipe, all major cards |
| Monthly Fee | $0 | No monthly fees, no contracts |
| Instant Deposit (optional) | 1.75% per transfer | Get funds in seconds instead of next day |
Lightning Port: Being Phased Out
Apple switched to USB-C starting with iPhone 15 (September 2023). If you buy a new iPhone, this reader won’t work.
Square offers magstripe readers in three connector types:
- Lightning — Older iPhones (iPhone 14 and earlier) and iPads with Lightning ports
- USB-C — iPhone 15+, newer iPads, Android devices
- 3.5mm headset jack — Legacy Android devices
If you’re planning to upgrade your phone soon, check what connector you’ll need — or skip the magstripe reader entirely and get the Bluetooth-connected Square Reader for Contactless and Chip.
Who This Reader Is Actually For
✅ Good Use Cases
- Backup reader — Keep one in case your chip reader fails or needs charging
- Rare swipe-only situations — Some gift cards and older cards without chips
- Occasional sellers — Very low volume (a few transactions per month) where liability risk is minimal
- Testing Square — Free way to try Square before investing in hardware
❌ Not Recommended For
- Primary payment device for any business
- High-volume sellers
- Anyone concerned about fraud liability
- Businesses accepting mobile wallet payments (Apple Pay, Google Pay)
- Anyone with iPhone 15 or newer
Better Alternative: Square Reader for Contactless and Chip
For most businesses, the Square Reader for Contactless and Chip (2nd Generation) is the better choice:
| Feature | Magstripe Reader | Contactless + Chip Reader |
|---|---|---|
| Price | $10 (or free) | $59 |
| Chip cards (EMV) | ❌ No | ✅ Yes |
| Tap / Contactless | ❌ No | ✅ Yes |
| Apple Pay / Google Pay | ❌ No | ✅ Yes |
| Magstripe swipe | ✅ Yes | ✅ Yes |
| EMV liability protection | ❌ No | ✅ Yes |
| Connection | Lightning port | Bluetooth |
| Battery | No battery needed | Built-in (all-day) |
| Offline mode | Limited | ✅ Yes |
The chip reader costs $49 more but accepts every payment type customers use today.
Features
- Accepts Visa, Mastercard, Discover, American Express via magnetic stripe
- Plugs into Lightning port (no battery, no charging)
- Works with Square Point of Sale, Square for Restaurants, Square for Retail, Square Appointments
- Free deposits to your bank (1-2 business days) or instant for 1.75%
- Encrypted transactions at swipe
- Compact design — fits in pocket
Compatibility
Works With:
- iPhone 14 and earlier (Lightning port)
- iPad with Lightning connector
- iOS 15 or later recommended
Does NOT Work With:
- iPhone 15 or newer (USB-C port)
- Android devices
- iPads with USB-C
Understanding EMV Liability
Something to be aware of if you’re using a swipe-only reader: since October 2015, card networks shifted fraud liability to whichever party has the “lesser technology.”
| Scenario | Who Pays for Fraud? |
|---|---|
| Customer has chip card, you swipe it | You (the merchant) |
| Customer has chip card, you dip it (chip reader) | Card issuer |
| Customer has swipe-only card, you swipe it | Card issuer |
| Chip reader malfunctions, fallback to swipe | Card issuer (if properly flagged) |
Most cards now have chips, so if you’re processing a high volume of transactions, a chip-enabled reader like the Square Reader for Contactless and Chip offers more protection. For occasional or backup use, the magstripe reader is still a practical option.
Square Magstripe Reader FAQs
Is the first Square magstripe reader really free?
Yes. When you create a new Square account, Square sends you one free magstripe reader. Additional readers cost $10 each.
Can I accept chip cards with this reader?
No. This reader only accepts swiped payments from the magnetic stripe on the back of the card. To accept chip cards (EMV), you need the Square Reader for Contactless and Chip.
Can I accept Apple Pay or Google Pay?
No. This reader does not support contactless payments. You’ll need a contactless-enabled reader for mobile wallet payments.
What happens if I swipe a chip card?
The transaction may process, but you assume liability for fraud. Under EMV rules, if a chip card is swiped instead of dipped and the transaction turns out to be fraudulent, you — not the card issuer — pay for it.
Will this reader work with my new iPhone 15?
No. iPhone 15 and newer use USB-C instead of Lightning. You’ll need either the USB-C magstripe reader or (recommended) the Bluetooth-connected chip reader.
Does this reader need to be charged?
No. It draws power from your iPhone or iPad through the Lightning connection.
Can I process transactions offline?
Limited. You can use Square’s Offline Mode to temporarily store transactions when you don’t have internet, but they must be processed within 24 hours when you reconnect. Offline transactions carry additional risk.
The Bottom Line
The Square Reader for Magstripe (Lightning) does what it’s designed to do — accept swiped card payments with zero upfront cost. For a free backup reader or occasional use with swipe-only cards, it’s hard to beat.
That said, most businesses will get more value from the Square Reader for Contactless and Chip. At $59, it accepts chip cards, tap payments, and mobile wallets like Apple Pay — and it works via Bluetooth with any phone, including newer USB-C iPhones.
If you’re just getting started with Square, grab the free magstripe reader to test things out. When you’re ready to accept every payment type, upgrade to the chip reader.
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 Magstripe (Lightning Connector)
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