Key Takeaways
- The Square Reader for contactless and chip (2nd Generation) costs $59 with no monthly fees or contracts.
- It accepts EMV chip cards, contactless taps, Apple Pay, and Google Pay through Bluetooth 5.3 connectivity.
- Battery life improved by 20% over the original, lasting over 24 hours of active use.
- Offline mode keeps you selling for up to 24 hours without an internet connection.
- Processing costs 2.6% plus 15 cents per in-person transaction in the US.
Running a small business means every sale counts. You need a payment tool that keeps up with your pace. The Square contactless reader promises to do exactly that. This pocket-sized device lets you accept chip cards, contactless payments, and mobile wallets anywhere your customers find you.
Choosing the wrong card reader costs you sales. Slow connections, dead batteries, and hidden fees drain your profits. The Square Reader for contactless and chip (2nd generation) addresses these pain points head-on. Square built this device for mobile sellers, market vendors, and small shops that demand reliability without complexity.
Product at a Glance
Square Contactless Reader
| Feature | Specification |
|---|---|
| Product Name | Square Reader for contactless and chip (2nd Generation) |
| Price | $59 (US) |
| Processing Fee | 2.6% + 15ยข per in-person transaction |
| Payment Types | EMV chip, contactless (NFC), Apple Pay, Google Pay |
| Connectivity | Bluetooth LE 5.3, wired USB-C (Android) |
| Battery Life | 24+ hours active use; 20% longer than 1st gen |
| Dimensions | 66 x 66 x 10 mm |
| Weight | 56 grams |
| Offline Mode | Up to 24 hours |
| Warranty | 1-year limited warranty |
Detailed Review
Why This Product Stands Out
Square dominates the small-business payment space for good reason. The company eliminated contracts, monthly fees, and minimum sales requirements. You buy the reader, download the free app, and start selling within minutes.
The second-generation reader improves on an already solid foundation. It packs Bluetooth 5.3 for stronger connections. The Stay Connected feature keeps your reader paired to your device for up to 30 days in low-power mode. That means fewer interruptions and faster checkouts.
Key Specifications
| Specification | Detail |
|---|---|
| Charging Port | USB-C |
| Power Button Location | Right of the charging port |
| Bluetooth Version | BLE 5.3 |
| Stay Connected Duration | Up to 30 days |
| Charge Time | Approximately 2 hours |
| Compatibility | iOS and Android devices |
| Deposit Speed | Next business day (standard); instant for 1.5% fee |
Design & Build Quality
Square designed this reader with portability in mind. The device measures just 66 millimeters square and weighs only 56 grams. It slips into your pocket, apron, or tool belt without bulk.
The matte white finish resists fingerprints and looks professional on any counter. The single LED indicator strip shows battery level at a glance. Four green lights mean full charge. One blinking red light demands immediate charging.
Materials & Construction
The housing uses durable polycarbonate that survives daily drops and bumps. The USB-C port sits flush with the body, reducing wear on the connector. There are no moving parts beyond the power button, which minimizes failure points.
Performance
Speed matters when customers queue up at your booth. The Square contactless reader processes contactless taps in under two seconds. Chip card insertions take only slightly longer.
Bluetooth 5.3 delivers a stable connection up to 10 feet from your paired device. The Stay Connected feature eliminates the frustrating re-pairing dance that plagued the first generation. Your reader wakes instantly when you open the Square Point of Sale app.
Comfort / Usability
Setup takes minutes, not hours. You charge the reader, pair it through the app, and start accepting payments. The Square Point of Sale app guides you through each step with clear prompts.
The reader has no screen and no physical PIN pad. Customers enter their PIN on your mobile device screen. This approach, known as PIN on COTS, is approved by the PCI Security Standards Council. Position your phone or tablet so customers can shield the keypad comfortably.
Features Explained
Stay Connected Mode
This feature keeps your reader paired for up to 30 days during inactivity. It saves battery and eliminates reconnection delays. You benefit because you never miss a spontaneous sale while fumbling with Bluetooth settings.
Offline Payments
Lose your internet signal at a festival or pop-up market? Offline mode stores transactions locally for up to 24 hours. Payments process automatically once you reconnect. This feature protects revenue during network outages.
24/7 Fraud Prevention
Square monitors transactions for suspicious activity around the clock. You get data encryption, payment-dispute management, and fraud prevention at no extra cost. This matters because chargebacks and disputes can cripple a small business.
Instant Deposits
Standard deposits hit your bank account the next business day. For urgent needs, instant transfers move funds within 20 minutes for a 1.5% fee. Cash flow keeps your business alive, and this flexibility helps you manage it.
Real World Usage
Picture yourself at a weekend farmers market. You sell handmade candles to a mix of locals and tourists. A customer pulls out their phone for Apple Pay. You tap the transaction amount in the Square app. They hold their iPhone near your reader. The sale completes in under two seconds.
Later, a tourist inserts an EMV chip card. Your tablet displays the PIN entry screen. They type their code discreetly. The receipt goes to their email. You never touched cash or made change.
At the end of the day, your battery still shows two green lights. You pack up knowing tomorrow deposits will land in your account automatically.
Benefits
- No monthly fees keep overhead low for seasonal or part-time sellers.
- No contracts let you walk away anytime without penalties.
- Compact size makes travel and storage effortless.
- Universal compatibility works with both iPhones and Android devices.
- Free POS software includes inventory tracking, sales reports, and customer management.
- Offline mode ensures you never lose a sale to bad connectivity.
Limitations
- No built-in receipt printer means you rely on email or text receipts.
- PIN entry on your device may feel awkward for some customers.
- Per-transaction fees add up for businesses with very low average tickets.
- No standalone operation requires a paired smartphone or tablet.
- Instant transfer fees of 1.5% cut into margins if used frequently.
Who Should Buy It?
This reader suits mobile sellers, food trucks, market vendors, freelance service providers, and small retailers. If you process fewer than $250,000 annually and value flexibility over locked-in merchant agreements, this device fits your workflow.
Who Should Avoid It?
High-volume businesses processing $250,000 or more annually should request custom pricing. Merchants needing a standalone terminal with a built-in printer should consider the Square Terminal instead. Businesses requiring 4G connectivity without a paired phone should look at cellular-enabled alternatives.
Key Features Table
| Feature | Why It Matters |
|---|---|
| Bluetooth 5.3 | Stronger, more reliable connection over greater distance |
| Stay Connected | Eliminates daily re-pairing; saves time at setup |
| 24-Hour Offline Mode | Protects revenue during internet outages |
| USB-C Charging | Faster, more durable, and universally compatible |
| Free POS App | Replaces expensive till systems and inventory software |
| Next-Day Deposits | Improves cash flow without extra cost |
Pros & Cons Table
| Pros | Cons |
|---|---|
| No monthly fees or contracts | No built-in receipt printer |
| 20% longer battery than 1st gen | PIN entry happens on your device |
| Accepts all major contactless methods | Per-transaction fees favor higher tickets |
| Offline payments up to 24 hours | Requires paired smartphone or tablet |
| Compact and lightweight design | Customer support limited to business hours |
| Free fraud prevention and dispute management |
Cleaning Tips
Wipe the reader surface with a slightly damp microfiber cloth. Avoid harsh chemicals or abrasive pads that could damage the finish. Clean the chip card slot monthly with compressed air to remove dust and debris. Never submerge the device in water.
Maintenance Tips
Charge the reader fully before long events. Store it in a cool, dry place away from direct sunlight. Update the Square Point of Sale app regularly to access new features and security patches. Check battery indicators before busy selling days.
Troubleshooting Tips
Reader won’t pair: Ensure Bluetooth is enabled on your device. Move the reader within 10 feet. Press and hold the power button for three seconds to force a reset.
Payments decline offline: Verify you reconnect to the internet within 24 hours. Declined offline payments cannot be recovered.
Battery drains quickly: Disable unnecessary app notifications on your paired device. Close background apps that may interfere with Bluetooth.
Slow transaction speed: Update the Square app and your phone’s operating system. Restart both devices.
What Real Buyers Appreciate
Owners consistently praise the simple setup process. Many note the improved battery life over the first generation. Users appreciate the lack of monthly fees for occasional selling. Several mention that the compact size makes it ideal for mobile businesses. Common feedback highlights reliable Bluetooth connectivity and fast contactless processing. Some users wish for a built-in PIN pad, but most accept the trade-off for such a small device.
Frequently Asked Questions
How much does the Square contactless reader cost?
The Square Reader for contactless and chip (2nd generation) retails for $59 in the United States. There are no monthly fees or contracts. You only pay the per-transaction processing rate of 2.6% plus 15 cents.
Does the Square Reader work without internet?
Yes. Offline mode stores transactions for up to 24 hours. Payments process automatically when you reconnect. You remain responsible for any declined transactions that occur while offline.
What payment types does the Square Reader accept?
It accepts EMV chip cards, contactless NFC cards, Apple Pay, Google Pay, and Samsung Pay. It does not accept magstripe-only cards; you need the separate Square magstripe reader for those.
How long does the battery last?
The second-generation reader lasts over 24 hours of active use. It delivers roughly 20% more transactions per charge than the original model. In low-power mode, Stay Connected keeps it paired for up to 30 days.
Can I use the Square Reader with any phone?
It works with most iOS and Android devices that support Bluetooth LE. Check Square’s compatibility page for a full list. Android users can also connect via wired USB-C.
Is the Square Reader secure?
Yes. Square encrypts card data at the moment of transaction. You receive 24/7 fraud monitoring, payment-dispute management, and PCI compliance at no extra charge.
Do I need a merchant account?
No. Square acts as the payment processor and merchant account combined. Sign up through the app, verify your identity, and start accepting payments immediately.
Can I get instant deposits?
Yes. Standard next-day deposits are free. Instant transfers to your linked bank account or Square Card cost 1.5% per transfer.
Final Verdict
The Square Reader for contactless and chip (2nd generation) delivers exactly what mobile and small-business sellers need. It combines compact hardware, reliable connectivity, and transparent pricing into one simple package. The improved battery life, Stay Connected feature, and offline mode remove the friction that kills sales.
This reader will not suit every business. High-volume merchants may find better rates elsewhere, while those needing standalone terminals or built-in printers should explore Square’s other hardware options. If you’re also setting up workplace systems, Best Leading Biometric Attendance Machines for Businesses can help you compare practical solutions for managing employee attendance. But for freelancers, market vendors, food trucks, and boutique shops, this device hits the sweet spot between capability and simplicity.
Call To Action
Ready to stop turning customers away? Grab the Square Reader for contactless and chip (2nd generation) today. Download the free Square Point of Sale app, pair your reader, and take your first payment in minutes. No contracts. No monthly fees. Just simple, secure selling wherever your business takes you.