Square Terminal vs Square Reader: Which Is Best for Your Business?
Choosing the right payment processing solution can feel overwhelming, especially with so many options available. For businesses using Square, the decision often boils down to two key contenders: the Square Terminal and the Square Reader.
Both devices offer seamless integration with Square’s ecosystem, but they cater to different needs and business types. Understanding the strengths and weaknesses of each will help you make an informed decision and choose the best fit for your specific requirements.
This comparison dives deep into the features, costs, and functionalities of the Square Terminal versus the Square Reader. We’ll explore their hardware, transaction fees, and overall suitability for various business scenarios, ensuring you’re equipped to make the perfect choice for your business.
Specs at a Glance
| Feature | Square Terminal | Square Reader |
|---|---|---|
| Connectivity | Wi-Fi, Ethernet, Bluetooth | Bluetooth, Headphone Jack (for audio) |
| Card Acceptance | Chip cards, contactless (NFC), magstripe | Chip cards, contactless (NFC), magstripe |
| Screen | Color touchscreen | None |
| Receipt Printing | Built-in printer | No printer |
| Payment Processing | Integrated | Requires a mobile device |
| Battery Life | All-day | Varies based on usage |
| Portability | Portable | Highly Portable |
| Transaction Speed | Fast | Fast, dependent on device |
| Keypad | Yes | No |
| Offline Mode | Yes (limited) | No |
| Accessories | Charging dock, paper rolls | None |
| Software Integration | Square POS software | Square POS software |
Feature-by-Feature Breakdown
Hardware
- Square Terminal: A standalone, all-in-one device with a built-in printer, touchscreen, and card reader. It connects via Wi-Fi or Ethernet. Pros: No need for a separate phone or tablet, fast transaction processing. Cons: Higher upfront cost, less portable than the reader.
- Square Reader: A small, portable card reader that connects to a smartphone or tablet via Bluetooth or headphone jack. It is a much smaller device. Pros: Very affordable and portable. Cons: Requires a compatible device and can be less reliable.
- Winner: Terminal
Payment Processing
- Square Terminal: Accepts all major credit cards, EMV chip cards, and contactless payments (NFC) like Apple Pay and Google Pay. Transactions are processed directly on the device. Pros: Fast and secure. Cons: Relies on internet connectivity.
- Square Reader: Accepts all major credit cards, EMV chip cards, and contactless payments (NFC) like Apple Pay and Google Pay. Relies on the connected device for processing. Pros: Versatile and supports various payment types. Cons: Processing speed depends on the connected device’s performance.
- Winner: Tie
Connectivity
- Square Terminal: Connects via Wi-Fi, Ethernet, and has a built-in battery for portable use. It is a self-contained unit. Pros: Reliable connectivity options. Cons: Limited portability due to its size and need for power.
- Square Reader: Connects to a smartphone or tablet via Bluetooth or headphone jack. Relies on the connected device’s internet connection. Pros: Very portable. Cons: Dependent on the connected device’s battery life and internet connection.
- Winner: Terminal
Receipt Printing
- Square Terminal: Features a built-in thermal printer for printing receipts. Pros: Provides a professional and convenient experience for customers. Cons: Printer can run out of paper.
- Square Reader: Does not have a built-in printer. Receipts are typically emailed or texted to customers, or printed via a separate printer connected to the device. Pros: Eliminates the need for paper. Cons: Requires an external printer or digital receipts, which may not be preferred by all customers.
- Winner: Terminal
Price
- Square Terminal: Has a higher upfront cost. Pros: Offers an all-in-one solution. Cons: Requires a larger initial investment.
- Square Reader: Significantly more affordable. Pros: Budget-friendly and ideal for small businesses or occasional use. Cons: Requires a smartphone or tablet.
- Winner: Reader
Software & Integrations
- Square Terminal: Runs on Square’s point-of-sale software, offering inventory management, reporting, and customer relationship management features. Integrates seamlessly with other Square products. Pros: Comprehensive POS features. Cons: Limited customization compared to some other POS systems.
- Square Reader: Uses the Square app on a smartphone or tablet, which offers similar features to the terminal but might be slightly less feature-rich. Integrates with other Square products. Pros: Access to Square’s ecosystem. Cons: May have a slightly less comprehensive feature set than the terminal.
- Winner: Terminal
Portability
- Square Terminal: While portable due to its battery, it’s bulkier than the reader. Pros: Can be used without being tethered to a phone. Cons: Less convenient for truly mobile businesses.
- Square Reader: Extremely portable and compact, making it ideal for mobile businesses or those needing to take payments on the go. Pros: Highly portable. Cons: Relies on a connected device.
- Winner: Reader
Battery Life
- Square Terminal: Has a built-in battery that provides a reasonable amount of use per charge. Pros: Allows for mobile transactions. Cons: Needs to be charged periodically.
- Square Reader: The reader itself doesn’t require charging (depending on the model). The connected device’s battery life is the limiting factor. Pros: Lightweight and doesn’t require its own charging. Cons: Dependent on the battery life of the connected device.
- Winner: Terminal
Winner by Category
| Category | Winner |
|---|---|
| Ease of Use | Square Terminal |
| Portability | Square Reader |
| All-in-one Solution | Square Terminal |
| Cost | Square Reader |
| Connectivity Options | Square Terminal |
| Receipt Printing | Square Terminal |
What They Have in Common
- Payment Processing: Both the Square Terminal and Square Reader seamlessly integrate with Square’s payment processing system. This allows for easy tracking of sales and access to funds.
- Square Pos Compatibility: Both devices are compatible with the Square Point of Sale (POS) software, enabling users to manage inventory, track sales, and access other business tools.
- Card Type Acceptance: Both devices accept a wide range of payment methods, including chip cards, contactless payments (like Apple Pay and Google Pay), and magstripe cards, providing flexibility for customers.
- Reporting and Analytics: Both offer access to Square’s reporting and analytics dashboard, providing valuable insights into sales data, customer behavior, and business performance.
- Security Features: Both devices are designed with security in mind, utilizing encryption and other measures to protect sensitive cardholder data.
Square Terminal Vs Square Reader Buying Guide
Transaction Speed and Processing
When considering transaction speed, Square Terminal generally provides a faster experience. It’s an all-in-one device with a built-in printer, allowing for immediate receipt printing. This contrasts with the Square Reader, which requires a separate printer or digital receipts, potentially adding processing time. Terminal’s integrated nature streamlines the checkout process, particularly for businesses handling a high volume of transactions. The reader, while quick, relies on external factors that could slightly delay the process.
Hardware and Features
The Square Terminal boasts a more comprehensive feature set due to its integrated design. This includes a built-in printer, a larger touchscreen display, and a more durable build. The Square Reader, on the other hand, is a compact card reader that connects to a mobile device. Its simplicity makes it portable and cost-effective, but it lacks the Terminal’s built-in features. The choice hinges on the need for a standalone device versus a mobile-focused solution.
Payment Methods Accepted
Both Square Terminal and Square Reader accept a wide range of payment methods, including credit cards, debit cards, and contactless payments like Apple Pay and Google Pay. However, Terminal, because of its standalone nature, might offer a slightly more streamlined experience for all payment types, especially those that require physical interaction. The Reader relies on the device it’s connected to, which could affect the user experience. Both options cover the essential payment needs of businesses.
Cost and Fees
The initial investment differs significantly. The Square Terminal has a higher upfront cost due to its advanced features. The Square Reader has a much lower initial cost, making it accessible for startups and businesses with a tight budget. Both devices operate on a per-transaction fee basis, but the actual cost will depend on the transaction volume and the type of card used. Research and compare the transaction fees to determine the most cost-effective solution for your business.
Portability and Convenience
The Square Reader excels in portability. Its small size allows it to be easily carried in a pocket. It connects wirelessly to a smartphone or tablet, making it ideal for mobile businesses and events. The Square Terminal is less portable, as it requires a power source and has a larger footprint. The Terminal is better suited for businesses with a fixed location. Consider the level of mobility your business requires when deciding.
Suitability for Business Type
The Square Terminal is well-suited for businesses needing a countertop solution with fast processing and receipt printing, like restaurants, retail stores, and salons. The Square Reader is ideal for mobile businesses, pop-up shops, and businesses that need a simple, cost-effective way to accept payments on the go. Consider your business’s operational needs and the importance of features like receipt printing when choosing between the two options. Evaluating the needs of your business is vital.
Who Should Buy What?
Buy Square Terminal If…
- You need an all-in-one solution with a built-in printer for receipts.
- You prefer a dedicated device with a touchscreen and keypad for ease of use.
- You require a device with strong connectivity options, including Wi-Fi and Ethernet.
- You need a more professional look and feel for your payment processing.
Buy Square Reader If…
- You need a highly portable and affordable payment solution.
- You already have a smartphone or tablet to use with the reader.
- You prioritize simplicity and ease of setup.
- You operate in a mobile environment and need a lightweight option.
Frequently Asked Questions
What is the Square Terminal?
The Square Terminal is a standalone point-of-sale device that accepts payments, prints receipts, and handles transactions. It integrates payment processing, receipt printing, and a touchscreen interface into one device. It connects to your Square account and allows you to manage payments and view sales data easily. It offers a more complete checkout experience for businesses.
What is the Square Reader?
The Square Reader is a compact card reader that connects to a smartphone or tablet via Bluetooth or a headphone jack (depending on the model). It allows businesses to accept credit and debit card payments on the go. It’s a cost-effective and portable solution, ideal for mobile businesses or those needing a simple payment processing option.
How do I set up the Square Terminal?
Setting up the Square Terminal is straightforward. You create a Square account, connect the device to your Wi-Fi network, and then log into your account. The Terminal guides you through the process. The setup process is designed to be user-friendly, allowing you to begin accepting payments quickly. You can also customize settings for your business.
How do I set up the Square Reader?
To set up the Square Reader, you pair it with your smartphone or tablet via Bluetooth. You’ll need to download the Square app and create or log in to your Square account. Once paired, you can begin accepting payments. The app guides you through the initial setup process. Ensure your device is compatible with the Square Reader.
What are the transaction fees for Square Terminal?
Square Terminal, like the Square Reader, charges a per-transaction fee, typically around 2.6% + $0.10 for each card present transaction. Fees may vary depending on the card type and the total transaction amount. Check Square’s official website for the most current fee structure. Review the fee structure to understand the costs associated with payment processing.
Can I use Square Terminal offline?
No, Square Terminal requires an internet connection (Wi-Fi or Ethernet) to process payments. However, it can store transactions and process them when the connection is restored, up to a certain limit. It does not provide true offline payment processing. The Terminal needs a network connection to operate fully.
What kind of support does Square offer?
Square offers comprehensive support through its website, help center, and customer service channels. They provide tutorials, FAQs, and troubleshooting guides. You can also contact their support team via email or phone for assistance. Square’s support is generally considered to be reliable and helpful. Check their website for the best support options.
Final Verdict
Both Square Terminal and Square Reader offer excellent payment processing solutions. The Square Terminal is a powerful all-in-one option for businesses with a fixed location needing a more comprehensive solution, while the Square Reader is perfect for mobile businesses and those prioritizing portability and cost-effectiveness. The best choice depends on your specific business needs and priorities.
Winner: Square Terminal