How to integrate Square MCP with Claude Agent SDK

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Introduction

This guide walks you through connecting Square to the Claude Agent SDK using the Composio tool router. By the end, you'll have a working Square agent that can create and send an invoice to a customer, list all recent payments from last week, update item prices in your product catalog through natural language commands.

This guide will help you understand how to give your Claude Agent SDK agent real control over a Square account through Composio's Square MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Square with

TL;DR

Here's what you'll learn:
  • Get and set up your Claude/Anthropic and Composio API keys
  • Install the necessary dependencies
  • Initialize Composio and create a Tool Router session for Square
  • Configure an AI agent that can use Square as a tool
  • Run a live chat session where you can ask the agent to perform Square operations

What is Claude Agent SDK?

The Claude Agent SDK is Anthropic's official framework for building AI agents powered by Claude. It provides a streamlined interface for creating agents with MCP tool support and conversation management.

Key features include:

  • Native MCP Support: Built-in support for Model Context Protocol servers
  • Permission Modes: Control tool execution permissions
  • Streaming Responses: Real-time response streaming for interactive applications
  • Context Manager: Clean async context management for sessions

What is the Square MCP server, and what's possible with it?

The Square MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Square account. It provides structured and secure access to your Square business tools, so your agent can perform actions like processing payments, managing invoices, tracking orders, handling customers, and managing inventory on your behalf.

  • Seamless payment processing: Let your agent accept card payments, issue refunds, and manage transactions across your business locations.
  • Automated invoice creation and management: Ask your agent to generate, send, and monitor invoices for your customers, streamlining your billing process.
  • Order and fulfillment tracking: Enable your agent to view, update, and manage orders, helping you keep tabs on fulfillment and delivery status with ease.
  • Customer profile management: Have your agent create, update, or search customer profiles, making it easier to personalize service and maintain up-to-date records.
  • Inventory and item catalog control: Allow your agent to track stock levels, update item details, and organize your catalog for smooth retail operations.

Supported Tools & Triggers

Tools
Accept DisputeAccept a dispute and acknowledge liability, returning funds to the cardholder.
Add Group to CustomerTool to add a customer to a customer group.
Calculate OrderTool to preview order pricing without creating an order.
Cancel InvoiceCancels a Square invoice, preventing further payments from being collected.
Cancel PaymentCancels (voids) a payment that is in APPROVED status.
Create Bulk CustomersTool to create multiple customer profiles in a single request.
Create CardTool to create a card on file.
Create CustomerTool to create a new customer profile in Square.
Create Customer Custom Attribute DefinitionTool to create a customer-related custom attribute definition.
Create Customer GroupTool to create a new customer group for a business.
Create Dispute Evidence FileTool to upload a file as dispute evidence.
Create Dispute Evidence TextUpload text evidence for a dispute challenge.
Create Invoice AttachmentUpload and attach a file to a Square invoice.
Create LocationTool to create a new business location in a Square account.
Create Location Custom Attribute DefinitionTool to create a location-related custom attribute definition.
Delete CustomerTool to delete a Square customer profile.
Delete Customer Custom AttributeTool to delete a custom attribute from a customer profile.
Delete Customer Custom Attribute DefinitionTool to delete a customer-related custom attribute definition.
Delete Customer GroupTool to delete a customer group by its ID.
Bulk Delete CustomersTool to bulk delete customer profiles from Square.
Delete Dispute EvidenceRemoves a specific piece of evidence from a dispute.
Delete InvoiceTool to delete a Square invoice (only DRAFT invoices can be deleted).
Delete Invoice AttachmentTool to delete an attachment from a Square invoice.
Delete Location Custom AttributeTool to delete a custom attribute from a location.
Delete Location Custom Attribute DefinitionTool to delete a location-related custom attribute definition.
Delete Locations Custom Attributes (Batch)Tool to delete custom attributes from multiple locations in a single batch request.
Delete Merchant Custom AttributeTool to delete a custom attribute from a merchant profile.
Delete Merchant Custom Attribute DefinitionTool to delete a merchant-related custom attribute definition.
Delete Merchants Custom Attributes (Batch)Tool to delete custom attributes from multiple merchants in a single batch request.
Delete Webhook SubscriptionPermanently deletes a webhook subscription by its ID.
Get Business Booking ProfileTool to retrieve the business booking profile for a Square merchant via GraphQL.
Get Current MerchantTool to retrieve merchant information associated with the access token using Square's GraphQL API.
Get Customer Custom AttributeRetrieves a custom attribute from a customer profile in Square.
Get Customer Custom Attribute DefinitionTool to retrieve a customer-related custom attribute definition from Square.
Get Customers via GraphQLTool to retrieve customer profiles from Square Customer Directory using GraphQL API.
Get Dispute EvidenceRetrieves detailed information about a specific piece of evidence that was uploaded for a dispute.
Get InvoiceRetrieves detailed information about a specific Square invoice by its ID.
Get MerchantTool to retrieve detailed information about a specific Square merchant by ID.
Get Online Checkout Location SettingsTool to retrieve location-level settings for Square online checkout.
List ChannelsTool to list requested channels from Square.
List Customer Custom Attribute DefinitionsTool to list customer-related custom attribute definitions from Square.
List Customer Custom Attribute Definitions (GraphQL)Tool to retrieve customer custom attribute definitions via Square's GraphQL API.
List Customer Custom AttributesTool to list custom attributes for a customer profile.
List Customer GroupsTool to retrieve the list of customer groups of a business.
List CustomersTool to retrieve customer profiles associated with a Square account.
List Customer SegmentsTool to retrieve the list of customer segments of a business.
List Dispute EvidenceTool to list evidence items associated with a given dispute.
List InvoicesTool to list invoices for a Square location.
List Location Custom Attribute DefinitionsTool to list location-related custom attribute definitions from Square.
List LocationsTool to retrieve all business locations from a Square account.
List Locations Custom AttributesTool to list custom attributes for a specific location in Square.
List Merchant Custom Attribute DefinitionsTool to list merchant-related custom attribute definitions from Square.
List MerchantsTool to retrieve merchant account information associated with the access token.
List Merchants Custom AttributesTool to list custom attributes for a specific merchant in Square.
List PaymentsTool to list payments by location and time range to enable reconciliation and net sales reporting from Square POS.
List Webhook Event TypesTool to list available webhook event types.
List Webhook SubscriptionsList all webhook subscriptions owned by your application.
Remove Group From CustomerRemoves a customer from a customer group.
Retrieve Bulk CustomersTool to retrieve multiple customer profiles in a single request.
Retrieve ChannelRetrieve a Square channel by its ID.
Bulk Retrieve ChannelsTool to bulk retrieve multiple Square channels by their IDs in a single request.
Retrieve CustomerTool to retrieve detailed information about a specific Square customer by ID.
Retrieve Customer GroupTool to retrieve a specific Square customer group by ID.
Retrieve Customer SegmentTool to retrieve a specific customer segment by its ID.
Retrieve DisputeTool to retrieve a Square dispute by ID.
Retrieve LocationTool to retrieve detailed information about a specific Square location by ID.
Retrieve Location Custom AttributeRetrieves a custom attribute associated with a location in Square.
Retrieve Location Custom Attribute DefinitionTool to retrieve a location-related custom attribute definition.
Retrieve Merchant Custom AttributeRetrieves a custom attribute associated with a merchant in Square.
Retrieve Merchant Custom Attribute DefinitionTool to retrieve a merchant-related custom attribute definition from Square.
Retrieve MerchantsTool to retrieve merchant information including status, main location details, and capabilities using Square's GraphQL API.
Retrieve OrderRetrieves detailed information about a specific Square order by its ID.
Retrieve Payment LinkRetrieves a Square-hosted payment link by ID.
Retrieve Token StatusTool to retrieve information about an OAuth access token or personal access token.
Retrieve Webhook SubscriptionRetrieve a Square webhook subscription by its ID.
Search CustomersTool to search customer profiles in Square Customer Directory.
Search OrdersTool to search orders across one or more Square locations with filters.
Submit Dispute EvidenceSubmits evidence for a dispute to the cardholder's bank.
Test Webhook SubscriptionTests a webhook subscription by sending a test event to the configured notification URL.
Update CustomerTool to update an existing Square customer profile.
Update Customer Custom Attribute DefinitionTool to update a customer-related custom attribute definition in Square.
Update Customer GroupTool to update a customer group's information by its ID.
Bulk Update CustomersTool to update multiple customer profiles in a single batch operation.
Update LocationTool to update an existing business location in a Square account.
Update Location Custom Attribute DefinitionTool to update a location-related custom attribute definition in Square.
Update Merchant Custom Attribute DefinitionTool to update a merchant-related custom attribute definition in Square.
Update Online Checkout Location SettingsTool to update location-level settings for Square online checkout.
Update OrderUpdates an existing Square order by adding, modifying, or removing fields.
Update Webhook SubscriptionTool to update a Square webhook subscription.
Update Webhook Subscription Signature KeyTool to rotate the signature key for a webhook subscription.
Upsert Customer Custom AttributeTool to create or update a custom attribute for a customer profile.
Batch Upsert Customer Custom AttributesTool to create or update custom attributes for multiple customers in a single batch request.
Upsert Location Custom AttributeTool to create or update a custom attribute for a location.
Batch Upsert Locations Custom AttributesTool to create or update custom attributes for multiple locations in a single batch request.
Upsert Merchant Custom AttributeTool to create or update a custom attribute for a merchant profile.
Batch Upsert Merchants Custom AttributesTool to create or update custom attributes for multiple merchants in a single batch request.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Prerequisites

Before starting, make sure you have:
  • Composio API Key and Claude/Anthropic API Key
  • Primary know-how of Claude Agents SDK
  • A Square account
  • Some knowledge of Python

Getting API Keys for Claude/Anthropic and Composio

Claude/Anthropic API Key
  • Go to the Anthropic Console and create an API key. You'll need credits to use the models.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.

Install dependencies

pip install composio-anthropic claude-agent-sdk python-dotenv

Install the Composio SDK and the Claude Agents SDK.

What's happening:

  • composio-anthropic provides Composio integration for Anthropic
  • claude-agent-sdk is the core agent framework
  • python-dotenv loads environment variables

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
ANTHROPIC_API_KEY=your_anthropic_api_key_here

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates with Composio
  • USER_ID identifies the user for session management
  • ANTHROPIC_API_KEY authenticates with Anthropic/Claude

Import dependencies

import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()
What's happening:
  • We're importing all necessary libraries including the Claude Agent SDK and Composio
  • The load_dotenv() function loads environment variables from your .env file
  • This setup prepares the foundation for connecting Claude with Square functionality

Create a Composio instance and Tool Router session

async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Square
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["square"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")
What's happening:
  • The function checks for the required COMPOSIO_API_KEY environment variable
  • We're creating a Composio instance using our API key
  • The create method creates a Tool Router session for Square
  • The returned url is the MCP server URL that your agent will use

Configure Claude Agent with MCP

# Configure remote MCP server for Claude
options = ClaudeAgentOptions(
    permission_mode="bypassPermissions",
    mcp_servers={
        "composio": {
            "type": "http",
            "url": url,
            "headers": {
                "x-api-key": os.getenv("COMPOSIO_API_KEY")
            }
        }
    },
    system_prompt="You are a helpful assistant with access to Square tools via Composio.",
    max_turns=10
)
What's happening:
  • We're configuring the Claude Agent options with the MCP server URL
  • permission_mode="bypassPermissions" allows the agent to execute operations without asking for permission each time
  • The system prompt instructs the agent that it has access to Square
  • max_turns=10 limits the conversation length to prevent excessive API usage

Create client and start chat loop

# Create client with context manager
async with ClaudeSDKClient(options=options) as client:
    print("\nChat started. Type 'exit' or 'quit' to end.\n")

    # Main chat loop
    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit"}:
            print("Goodbye!")
            break

        # Send query
        await client.query(user_input)

        # Receive and print response
        print("Claude: ", end="", flush=True)
        async for message in client.receive_response():
            if hasattr(message, "content"):
                for block in message.content:
                    if hasattr(block, "text"):
                        print(block.text, end="", flush=True)
        print()
What's happening:
  • The Claude SDK client is created using the async context manager pattern
  • The agent processes each query and streams the response back in real-time
  • The chat loop continues until the user types 'exit' or 'quit'

Run the application

if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())
What's happening:
  • This entry point runs the async chat_with_remote_mcp() function using asyncio.run()
  • The application will start, create the MCP connection, and begin the interactive chat session

Complete Code

Here's the complete code to get you started with Square and Claude Agent SDK:

import asyncio
from claude_agent_sdk import ClaudeSDKClient, ClaudeAgentOptions
import os
from composio import Composio
from dotenv import load_dotenv

load_dotenv()

async def chat_with_remote_mcp():
    api_key = os.getenv("COMPOSIO_API_KEY")
    if not api_key:
        raise RuntimeError("COMPOSIO_API_KEY is not set")

    composio = Composio(api_key=api_key)

    # Create Tool Router session for Square
    mcp_server = composio.create(
        user_id=os.getenv("USER_ID"),
        toolkits=["square"]
    )

    url = mcp_server.mcp.url

    if not url:
        raise ValueError("Session URL not found")

    # Configure remote MCP server for Claude
    options = ClaudeAgentOptions(
        permission_mode="bypassPermissions",
        mcp_servers={
            "composio": {
                "type": "http",
                "url": url,
                "headers": {
                    "x-api-key": os.getenv("COMPOSIO_API_KEY")
                }
            }
        },
        system_prompt="You are a helpful assistant with access to Square tools via Composio.",
        max_turns=10
    )

    # Create client with context manager
    async with ClaudeSDKClient(options=options) as client:
        print("\nChat started. Type 'exit' or 'quit' to end.\n")

        # Main chat loop
        while True:
            user_input = input("You: ").strip()
            if user_input.lower() in {"exit", "quit"}:
                print("Goodbye!")
                break

            # Send query
            await client.query(user_input)

            # Receive and print response
            print("Claude: ", end="", flush=True)
            async for message in client.receive_response():
                if hasattr(message, "content"):
                    for block in message.content:
                        if hasattr(block, "text"):
                            print(block.text, end="", flush=True)
            print()

if __name__ == "__main__":
    asyncio.run(chat_with_remote_mcp())

Conclusion

You've successfully built a Claude Agent SDK agent that can interact with Square through Composio's Tool Router.

Key features:

  • Native MCP support through Claude's agent framework
  • Streaming responses for real-time interaction
  • Permission bypass for smooth automated workflows
You can extend this by adding more toolkits, implementing custom business logic, or building a web interface around the agent.

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FAQ

What are the differences in Tool Router MCP and Square MCP?

With a standalone Square MCP server, the agents and LLMs can only access a fixed set of Square tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Square and many other apps based on the task at hand, all through a single MCP endpoint.

Can I use Tool Router MCP with Claude Agent SDK?

Yes, you can. Claude Agent SDK fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Square tools.

Can I manage the permissions and scopes for Square while using Tool Router?

Yes, absolutely. You can configure which Square scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

How safe is my data with Composio Tool Router?

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Square data and credentials are handled as safely as possible.

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