Square Reader vs Square Terminal: Which Payment Solution Is Best For Your Business in 2025
Written by Lee Hart
Choosing the right payment hardware for your business can make a big difference in both customer experience and your bottom line. Square offers two popular options in the UK market: the compact Square Reader and the all-in-one Square Terminal. While both devices allow merchants to accept debit and credit card payments, they differ significantly in functionality, price, and target users.
The Square Reader costs £49 (excluding VAT) and works with your mobile device, while the Square Terminal is priced at £229 and functions as a standalone payment system with built-in receipt printing capabilities. For small businesses or mobile vendors, this price difference might be a crucial factor in the decision-making process. The Reader connects to your smartphone or tablet, requiring you to use the Square Point of Sale app, whereas the Terminal operates independently with its own touchscreen interface.
Beyond the price, your choice should depend on your business type, transaction volume, and whether you need additional features like receipt printing or a self-contained system. The Square Reader might be ideal for businesses on the go, while the Terminal offers more comprehensive functionality for fixed locations that need an all-in-one solution.
Key Takeaways
- Square Reader is more budget-friendly at £49 and pairs with mobile devices, making it ideal for businesses with lower transaction volumes or those requiring mobility.
- Square Terminal costs £229 but functions independently with built-in receipt printing and a touchscreen interface, eliminating the need for a separate mobile device.
- Both devices accept all major payment methods including chip and PIN, contactless, and mobile payments like Apple Pay and Google Pay, with the same transaction fee structure.
Overview Of Square Reader And Square Terminal
Square offers two popular payment processing devices for merchants with different business needs and budgets. These solutions provide various capabilities for accepting card payments while offering different levels of portability and features.
What Is Square Reader?
The Square Reader is a compact, portable payment device that connects to smartphones or tablets. It's a small, lightweight card reader that allows businesses to accept chip and contactless card payments, including mobile wallets like Apple Pay and Google Pay.
The second generation Square Reader has improved chip reader capabilities and creates stronger connections with mobile devices. At £49 (excluding VAT), it's the more budget-friendly option compared to other Square hardware.
Square Reader requires pairing with a compatible smartphone or tablet running the Square Point of Sale app. This means you'll need a separate device to process transactions and manage your business operations.
The reader doesn't have a built-in screen, PIN pad, or receipt printer. All transaction details display on your connected device through the Square app.
What Is Square Terminal?
Square Terminal is an all-in-one payment processing device that combines multiple functions in a single unit. This standalone device includes a touchscreen display, built-in card reader, and receipt printer.
Priced at £229 (excluding VAT), the Square Terminal costs more than the Reader but eliminates the need for a separate mobile device. It works independently with built-in Wi-Fi connectivity.
Square Terminal allows merchants to:
- Accept all major cards
- Process contactless payments (Apple Pay and Google Pay)
- Build and manage an item library
- Print receipts directly from the device
The terminal connects to the internet via Wi-Fi or optional Ethernet using the hub for Square Terminal (sold separately). This connectivity ensures reliable payment processing without depending on a mobile device.
How Each Device Works
Square Reader functions as an extension of your smartphone or tablet. After downloading the Square Point of Sale app, you pair the Reader via Bluetooth. When taking payments, customers insert their chip card or tap their contactless card/phone against the Reader.
The transaction processes through your mobile device, which displays payment details and sends digital receipts. The Reader has no independent functionality and relies entirely on your mobile device for processing power and internet connectivity.
Square Terminal operates as a self-contained system. You can set up the device by connecting to Wi-Fi, logging into your Square account, and following the on-screen instructions. The touchscreen interface allows you to select items, enter amounts, and process payments.
Customers can insert, tap, or swipe their cards directly on the Terminal. Once the payment completes, the built-in printer can produce a paper receipt. The Terminal also offers additional features like inventory management and staff accounts directly on the device.
Design And Hardware Comparison
Square Terminal and Square Reader have distinct physical characteristics that impact how businesses interact with these payment devices. The devices differ significantly in size, display capabilities, and how easily they can be transported and used in various settings.
Physical Appearance And Build Quality
Square Reader is a compact, lightweight device that connects to mobile devices. The 2nd generation Reader has a sleek design with smooth edges and is predominantly white. It measures approximately 6.4 × 6.4 × 1.3 cm, making it small enough to fit in a pocket.
The build quality is solid despite its plastic construction. It features a chip reader slot at the top and contactless payment capability, allowing it to accept all major cards, Apple Pay and Google Pay.
Square Terminal, in contrast, has a more substantial construction. It resembles a modern card machine with an integrated design. The Terminal has a professional appearance with a sturdy base that allows it to sit securely on countertops. Its build quality is notably more robust than the Reader, featuring durable materials designed for frequent use in busy environments.
User Interface And Display
The Square Reader has no display of its own, instead relying on the connected mobile device to serve as its interface. Users interact with the Square Point of Sale app on their phone or tablet to process transactions, view sale information, and manage settings.
Square Terminal features a built-in touchscreen display that allows for standalone operation. The screen is bright and responsive, offering a user-friendly interface that merchants can navigate without needing an additional device.
The Terminal's display shows transaction details, allows for item library access, and provides on-screen signature capabilities. Its interface is intuitive, with clear menu options and a simple layout that requires minimal training for staff to use effectively.
Portability And Mobility
The Square Reader excels in portability as it weighs less than 30 grams. Its small footprint makes it ideal for businesses that need to process payments on the go, such as market vendors, mobile services, or pop-up shops.
It requires no separate charging as it draws power from the connected mobile device. This makes it exceptionally convenient for quick deployment in various locations without worrying about battery life.
Square Terminal offers portable all-in-one functionality but is considerably larger and heavier than the Reader. It includes a rechargeable battery that lasts for several hours of continuous use, allowing for mobility within a business premises.
While not as pocket-sized as the Reader, the Terminal can be easily transported between locations in a bag. It connects via Wi-Fi or optional Ethernet (with the hub for Square Terminal sold separately), offering flexibility in how and where it's used.
Payment Acceptance Capabilities
Both Square Terminal and Square Reader offer extensive payment processing options that meet different business needs. They handle various payment methods with differences in mobility and convenience.
Supported Payment Methods
Square Terminal and Square Reader both accept all major credit and debit cards including Visa, Mastercard, American Express and Discover. This wide acceptance ensures businesses don't miss out on sales due to payment limitations.
Square Terminal provides more comprehensive payment acceptance with its built-in capabilities. It processes chip cards, contactless payments, and magnetic stripe cards all in one device.
The Square Reader is more budget-friendly at £49 compared to Terminal's £229 price point. Despite the price difference, both devices handle the core payment types most businesses require daily.
Square Terminal includes receipt printing functionality, making it a complete payment solution without needing additional hardware.
Contactless And Chip Payments
Both devices excel at processing modern payment methods, with slight differences in implementation. They support Apple Pay and Google Pay contactless transactions, meeting customer expectations for quick payments.
The Square Terminal accepts contactless payments directly through its built-in NFC reader. Its all-in-one design makes it simple to tap, insert or swipe without switching between devices.
Square Reader connects to mobile devices, making it highly portable but requiring a smartphone or tablet to operate. The second generation Reader features improved chip reader capabilities and stronger connection to mobile devices.
For businesses prioritising speed, both options process contactless payments quickly. Chip card transactions take slightly longer but provide enhanced security that customers appreciate.
Features And Functionality
Square Reader and Square Terminal offer distinct capabilities to meet different business needs. Both devices handle payments efficiently but differ in their independent operation, receipt options, battery performance and connectivity solutions.
Receipts And Printing Options
The Square Terminal comes with a built-in receipt printer, allowing merchants to provide customers with physical receipts immediately after transactions. This integrated printer produces clear, professional receipts without requiring additional equipment.
In contrast, the Square Reader lacks built-in printing capability. Businesses using Square Reader must either email digital receipts to customers or connect to a separate receipt printer through the Square app on their mobile device or tablet.
For businesses where paper receipts are essential, the Terminal offers significant convenience. However, shops focusing on sustainability might prefer the Reader's digital-first approach, which reduces paper waste and saves on printing costs.
Battery Life And Charging
The Square Terminal features a rechargeable battery designed to last a full business day on a single charge. It typically provides 7-8 hours of continuous use, making it suitable for busy retail environments without constant access to power.
The Square Reader is more compact but still offers impressive battery performance. The second-generation model includes enhancements for better power efficiency. It connects to and draws minimal power from the host device, extending the overall system's operational time.
Both devices use USB-C connections for charging, with the Terminal including a charging dock for convenient overnight replenishment. For mobile businesses like market traders or delivery services, the Reader's lower power consumption and smaller footprint might be more advantageous.
Connectivity Options
Square Terminal provides multiple connectivity choices, supporting both Wi-Fi and Ethernet connections (the latter requiring the optional Hub accessory for £39 plus VAT). This flexibility ensures reliable payment processing even in locations with spotty wireless coverage.
The Square Reader relies on Bluetooth connection to a smartphone or tablet running the Square app. While this creates dependence on another device, it allows for extremely portable operation and simpler setup in changing environments.
For stable retail locations, Terminal's independent connectivity offers greater reliability. However, businesses that already use tablets or smartphones for inventory or customer management may find the Reader's connected approach more integrated with their existing workflow.
Both devices include secure encrypted connections for payment processing, with 24/7 fraud prevention and payment dispute management at no additional cost.
Ease Of Use And Setup
Both Square Reader and Square Terminal offer streamlined experiences for merchants, but they differ significantly in their setup processes and integration capabilities. The devices are designed with user-friendliness in mind while catering to different business needs.
Device Setup Process
The Square Terminal features a more straightforward setup process. Users simply need to power it on, connect to Wi-Fi, and follow the on-screen instructions to get started. The built-in touchscreen guides merchants through the entire process without requiring additional devices.
In contrast, the Square Reader requires a bit more setup. It must be paired with a smartphone or tablet to function properly. Users need to:
- Download the Square Point of Sale app
- Connect the Reader via Bluetooth
- Configure settings through the companion device
For merchants who aren't tech-savvy, the Terminal's all-in-one approach might be preferable. However, those already comfortable with mobile devices may find the Reader's setup equally manageable despite the extra steps.
Integrations With Square Ecosystem
Both devices integrate seamlessly with the broader Square ecosystem, but in different ways. The Square Terminal functions as a complete point of sale with its own item library, receipt printing capabilities, and hardware accessory connections.
The Terminal can connect via Wi-Fi or Ethernet (with the optional Hub for Square Terminal). This gives it flexibility in various business environments without depending on other devices.
The Reader relies on the Square app running on your phone or tablet for most functionality. While this might seem limiting, it offers advantages for businesses already using Square's software ecosystem extensively.
Both devices sync automatically with Square's inventory management, customer database, and analytics tools. This ensures transactions and data flow smoothly across all parts of a merchant's Square account regardless of which device is used.
Cost and Pricing Structure
When comparing Square Reader and Square Terminal, their financial aspects are critical factors for business decision-making. The devices differ significantly in initial investment, ongoing fees, and overall value proposition for different business types.
Upfront Hardware Costs
Square Reader is the more budget-friendly option, priced at £49. This compact device connects to mobile phones or tablets, making it ideal for businesses just starting out or those with limited transaction volume.
In contrast, Square Terminal comes with a higher price tag of £229. The substantial price difference reflects Terminal's all-in-one functionality.
The Terminal includes a built-in screen, receipt printer capabilities, and standalone operation without requiring a separate device. This makes it a complete point-of-sale solution rather than just a payment accessory.
For businesses concerned about initial cash outlay, Square offers payment plans. The Terminal can be purchased through monthly instalments of approximately £39 over one year, spreading the cost for better cash flow management.
Transaction Fees
Both devices use the same basic fee structure for standard card payments. In-person transactions processed through either device incur a fee of 2.6% + 10p per tap, dip, or swipe payment.
For Afterpay transactions (buy now, pay later), both devices charge a higher rate of 6% + 30p per transaction, reflecting the additional financial risk involved in these payment methods.
Neither device charges monthly subscription fees for basic point-of-sale software, unlike some competitors in the market. The software comes free with the hardware purchase.
There are no hidden monthly minimums or surprise charges, making cost forecasting straightforward for business planning. Square's transparent pricing model applies consistently across both devices.
Long-Term Value For Businesses
For mobile businesses or those with low transaction volumes, the Reader offers better initial value due to its lower upfront cost and identical transaction fees to the Terminal.
The Terminal provides better long-term value for businesses with higher transaction volumes or those requiring a professional checkout experience. Its all-in-one functionality eliminates the need for separate devices like tablets and receipt printers.
Terminal offers additional features that may justify its higher cost:
- Built-in receipt printing
- Wi-Fi and optional Ethernet connectivity
- Professional customer-facing display
- Integrated item library management
For businesses growing beyond occasional sales, Terminal's professional appearance and standalone functionality often justify the higher initial investment through improved customer perception and operational efficiency.
Target Users And Business Suitability
Both Square Reader and Square Terminal serve specific business needs based on their unique features and capabilities. The right choice depends on your business type, transaction volume, and operational environment.
Best Use Cases For Square Reader
Square Reader is ideal for small businesses and mobile vendors who need a lightweight, portable payment solution. It's perfect for market stalls, pop-up shops, and businesses just starting out who need a budget-friendly option at £49.
The device excels in environments where merchants move around to complete sales, such as:
- Food trucks and farmers' markets
- Mobile beauty services
- Trade shows and conventions
- Small retail shops with limited counter space
Square Reader works brilliantly for businesses with lower transaction volumes or those who don't need a dedicated payment terminal. Its simplicity makes it ideal for seasonal businesses or those testing card payments before investing in more advanced hardware.
Best Use Cases For Square Terminal
Square Terminal (priced at £139 + VAT) suits established businesses needing an all-in-one solution. This standalone device is perfect for merchants who want professional payment processing without connecting to a separate device.
It works exceptionally well for:
- Restaurants and cafés with table service
- Salons and spas with fixed service areas
- Retail shops with dedicated checkout counters
- Service businesses with reception desks
The Terminal offers enhanced features including receipt printing and a dedicated touchscreen. Businesses processing numerous daily transactions will appreciate its robust connectivity options, including Wi-Fi and optional Ethernet connection.
Business Types And Environments
Different business environments call for specific Square hardware solutions based on operational needs and customer expectations.
High-mobility businesses (plumbers, market traders, delivery services) benefit from Square Reader's portability and smartphone integration. The minimal setup makes it perfect for businesses constantly on the move.
Fixed-location businesses with moderate transaction volumes find Square Terminal's self-contained system more efficient. Its professional appearance and integrated features create a seamless checkout experience for boutiques, cafés and service providers.
Both devices offer the same fraud prevention and next-day settlement options, making them equally secure. The decision ultimately hinges on mobility requirements, transaction volume, and whether you need integrated receipt printing capabilities.
Security and Compliance
When comparing the Square Reader and Square Terminal, security features are a crucial factor for business owners. Both devices prioritise keeping customer payment data safe.
The Square Reader encrypts all card-present transactions at the point of swipe. This means sensitive information remains encrypted throughout transmission from the reader to the application and finally to Square's data centres.
Square Terminal offers similar security features but as an all-in-one device, it provides additional layers of protection. Both devices are PCI compliant, ensuring they meet industry standards for handling credit card information.
Key security features include:
- End-to-end encryption
- Secure payment processing
- Compliance with payment industry standards
- Protection against data breaches
The Square app does not store payment card data on mobile devices or within the application itself. This adds another layer of security, particularly for the Square Reader which connects to mobile devices.
Both options provide peace of mind for merchants and customers alike. Square regularly updates their security protocols to address emerging threats and vulnerabilities.
For businesses handling sensitive customer information, either device offers robust security measures. The choice ultimately depends on other factors like functionality, price point, and specific business needs rather than security differences.
Customer Support and Warranty
Square offers reliable customer service and support for both their Reader and Terminal products. If you need help, you can contact their UK support team at 0800 098 8099 for immediate assistance with any issues.
Both devices come with warranty protection. If your hardware malfunctions, Square provides options to return or replace your device under their limited warranty programme.
For Square Terminal, the warranty process is straightforward. Simply contact support with your serial number to begin the return or replacement process.
The Square Reader has a similar warranty process. When returning a Square Reader, you'll need to provide the serial number, which helps Square process your claim efficiently.
It's worth noting that if you purchased a Square Stand with included Reader, you may need to submit separate warranty claims for each item.
Square's support team can assist with:
- Hardware troubleshooting
- Warranty claims
- Replacement requests
- Setup problems
- Payment processing issues
The support centre also offers comprehensive guides for both devices, covering everything from initial setup to advanced features.
Pros and Cons of Each Device
Both Square payment solutions offer unique benefits and limitations that impact their suitability for different business needs. The choice between portability and comprehensive features often determines which device will serve a merchant best.
Square Reader Advantages and Disadvantages
Advantages:
- Highly portable - Fits in your pocket and easy to carry anywhere
- Budget-friendly at just £49
- Simple connectivity - Pairs with your existing phone or tablet
- 24/7 fraud prevention and payment dispute management at no extra cost
- Fast deposits - Get money in your bank account as soon as the next working day, or instantly for a fee
Disadvantages:
- Requires a separate device (smartphone or tablet) to function
- Battery life depends on connected device
- Less professional appearance for some business settings
- Limited functionality compared to all-in-one solutions
- Cannot print receipts without additional hardware
Square Terminal Strengths and Weaknesses
Strengths:
- All-in-one solution with built-in display, card readers and receipt printer
- Standalone operation - No phone or tablet required
- Multiple connectivity options via Wi-Fi or optional Ethernet
- Professional appearance suitable for established retail environments
- Comprehensive inventory management capabilities built-in
Weaknesses:
- Higher price point at £299 (or monthly payment options)
- Larger size makes it less pocket-portable
- More complex to set up initially
- May be overkill for very small or occasional sellers
- Requires charging more frequently than the simpler Reader
Which Should You Choose? Key Decision Factors
Choosing between Square Reader and Square Terminal depends on several key factors related to your business needs.
Business Size and Volume For small businesses with low transaction volumes, the Square Reader is often sufficient. Larger operations with higher volumes might benefit from the Terminal's standalone capabilities.
Budget Considerations The Reader is significantly more affordable at purchase, making it ideal for new businesses. The Terminal requires a larger upfront investment but offers more built-in functionality.
Mobility Requirements If you need to accept payments on the go, the Reader's compact size makes it extremely portable. It easily fits in a pocket and connects to your existing mobile device.
Transaction Types Both devices accept all major cards and contactless payments. However, the Terminal includes receipt printing capabilities that the Reader lacks without additional equipment.
Setup Complexity Reader offers simpler setup, requiring just a smartphone or tablet connection. Terminal works as a standalone device but needs Wi-Fi configuration.
Remember that both options process payments with the same transaction fees, so the choice primarily depends on your operational needs rather than ongoing costs.
Conclusion
When choosing between Square Reader and Square Terminal, your decision should be based on your specific business needs and budget.
Square Reader is the more affordable option at £49, making it ideal for small businesses or those just starting out. It's portable and connects to your phone or tablet, giving you flexibility.
Square Terminal costs more at £229 but offers standalone functionality without needing a separate device. Its built-in receipt printer and all-in-one design make it suitable for businesses needing a complete solution.
Consider your transaction volume and business setting when deciding. The Square Reader is more budget-friendly while the Terminal provides more features.
Both devices accept chip, contactless and swipe cards, but they cannot be used across different countries. A UK Square Reader must be purchased in the UK.
The Square Terminal provides integrated POS features similar to the Square Point of Sale app, navigated directly on the card machine screen. However, note that certain advanced features like Square for Restaurants are not fully available on the Terminal.
To make the best choice, assess your business size, mobility needs, transaction volume and budget. Either option provides reliable payment processing with Square's trusted platform behind it.
Frequently Asked Questions
Square payment systems offer different features tailored to various business needs. These key differences involve hardware capabilities, connectivity requirements, payment acceptance, and overall costs.
What are the primary distinctions between the Square Reader and Square Terminal in terms of functionality and usage?
The Square Reader is a compact device that connects to smartphones or tablets to process payments. It lacks a screen and requires a separate device to run the Square app.
In contrast, the Square Terminal is a standalone device with its own screen, built-in receipt printer, and PIN pad. This all-in-one solution provides customers with a private checkout experience.
The Terminal offers more advanced functionality while the Reader provides a simpler, more portable option for basic payment processing.
Can the Square Terminal operate independently without the need for additional devices?
Yes, the Square Terminal can operate completely independently. Unlike the Reader, it doesn't require connection to a smartphone or tablet to function.
The Terminal has its own operating system with the Square software pre-installed. It connects directly to the internet via Wi-Fi, allowing it to process payments and manage transactions without auxiliary devices.
This independence makes it ideal for businesses seeking a comprehensive, self-contained payment solution.
What types of payment methods are accepted by the Square Reader and Square Terminal, and do they differ?
Both devices accept chip and PIN cards, contactless payments, and mobile wallet transactions like Apple Pay and Google Pay. They support the same core payment methods.
The Square Terminal provides a more comprehensive payment experience with its built-in PIN pad and screen for customer interaction. The Reader relies on the connected mobile device for some aspects of the transaction process.
Both systems process major credit and debit cards including Visa, Mastercard, and American Express with identical transaction rates.
Are there any significant cost differences when choosing between the Square Reader and Square Terminal for my business?
The Square Reader is significantly more affordable, priced at £19 + VAT, making it suitable for small businesses or those just starting out.
The Square Terminal costs considerably more, with a higher initial investment. This price difference reflects its standalone capabilities and additional features.
Despite hardware cost differences, both devices typically charge the same transaction fee percentages for payment processing.
Is there a version or model of the Square Terminal that is designed to be portable for mobile use?
Yes, the standard Square Terminal is designed to be portable. It features a rechargeable battery that allows for cordless operation throughout the day.
The Terminal's compact design makes it easy to carry around a shop floor, restaurant, or market stall. Its built-in Wi-Fi connectivity ensures it can process payments anywhere within range of your network.
This portability makes it suitable for businesses that require mobility without sacrificing functionality.
How does the durability of the Square Terminal compare to the Square Reader when used in a high-volume retail environment?
The Square Terminal offers superior durability for high-volume environments. Its solid construction and integrated design protect internal components better than the Reader's more minimal structure.
The Terminal's touchscreen is designed for frequent use and can withstand thousands of transactions. Its built-in battery is also rated for extended operational periods.
The Reader, while less robust, benefits from simplicity with fewer components that could potentially fail. However, its connection to a mobile device introduces an additional potential point of failure in busy settings.
About The Author
Lee Hart
