How to integrate Square MCP with Vercel AI SDK v6

This guide walks you through connecting Square to Vercel AI SDK v6 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 Vercel AI 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.

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Square is a platform for payment processing, POS, invoicing, and e-commerce. It empowers businesses to accept payments, manage sales, and streamline operations from one place.

96 Tools

Introduction

This guide walks you through connecting Square to Vercel AI SDK v6 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 Vercel AI 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.

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TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Square integration
  • Using Composio's Tool Router to dynamically load and access Square tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

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.

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

Step by step09 STEPS
1

Prerequisites

Before you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • 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.
3

Install required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["square"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Square tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Square-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Square tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to square, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Square tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Square and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["square"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to square, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Square agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

Every Square action and event your agent gets out of the box.

Accept Dispute

Accept a dispute and acknowledge liability, returning funds to the cardholder.

Add Group to Customer

Tool to add a customer to a customer group.

Calculate Order

Tool to preview order pricing without creating an order.

Cancel Invoice

Cancels a Square invoice, preventing further payments from being collected.

Cancel Payment

Cancels (voids) a payment that is in APPROVED status.

Create Bulk Customers

Tool to create multiple customer profiles in a single request.

Create Card

Tool to create a card on file.

Create Customer

Tool to create a new customer profile in Square.

Create Customer Custom Attribute Definition

Tool to create a customer-related custom attribute definition.

Create Customer Group

Tool to create a new customer group for a business.

Create Dispute Evidence File

Tool to upload a file as dispute evidence.

Create Dispute Evidence Text

Upload text evidence for a dispute challenge.

Create Invoice Attachment

Upload and attach a file to a Square invoice.

Create Location

Tool to create a new business location in a Square account.

Create Location Custom Attribute Definition

Tool to create a location-related custom attribute definition.

Delete Customer

Tool to delete a Square customer profile.

Delete Customer Custom Attribute

Tool to delete a custom attribute from a customer profile.

Delete Customer Custom Attribute Definition

Tool to delete a customer-related custom attribute definition.

Delete Customer Group

Tool to delete a customer group by its ID.

Bulk Delete Customers

Tool to bulk delete customer profiles from Square.

Delete Dispute Evidence

Removes a specific piece of evidence from a dispute.

Delete Invoice

Tool to delete a Square invoice (only DRAFT invoices can be deleted).

Delete Invoice Attachment

Tool to delete an attachment from a Square invoice.

Delete Location Custom Attribute

Tool to delete a custom attribute from a location.

Delete Location Custom Attribute Definition

Tool 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 Attribute

Tool to delete a custom attribute from a merchant profile.

Delete Merchant Custom Attribute Definition

Tool 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 Subscription

Permanently deletes a webhook subscription by its ID.

Get Business Booking Profile

Tool to retrieve the business booking profile for a Square merchant via GraphQL.

Get Current Merchant

Tool to retrieve merchant information associated with the access token using Square's GraphQL API.

Get Customer Custom Attribute

Retrieves a custom attribute from a customer profile in Square.

Get Customer Custom Attribute Definition

Tool to retrieve a customer-related custom attribute definition from Square.

Get Customers via GraphQL

Tool to retrieve customer profiles from Square Customer Directory using GraphQL API.

Get Dispute Evidence

Retrieves detailed information about a specific piece of evidence that was uploaded for a dispute.

Get Invoice

Retrieves detailed information about a specific Square invoice by its ID.

Get Merchant

Tool to retrieve detailed information about a specific Square merchant by ID.

Get Online Checkout Location Settings

Tool to retrieve location-level settings for Square online checkout.

List Channels

Tool to list requested channels from Square.

List Customer Custom Attribute Definitions

Tool 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 Attributes

Tool to list custom attributes for a customer profile.

List Customer Groups

Tool to retrieve the list of customer groups of a business.

List Customers

Tool to retrieve customer profiles associated with a Square account.

List Customer Segments

Tool to retrieve the list of customer segments of a business.

List Dispute Evidence

Tool to list evidence items associated with a given dispute.

List Invoices

Tool to list invoices for a Square location.

List Location Custom Attribute Definitions

Tool to list location-related custom attribute definitions from Square.

List Locations

Tool to retrieve all business locations from a Square account.

List Locations Custom Attributes

Tool to list custom attributes for a specific location in Square.

List Merchant Custom Attribute Definitions

Tool to list merchant-related custom attribute definitions from Square.

List Merchants

Tool to retrieve merchant account information associated with the access token.

List Merchants Custom Attributes

Tool to list custom attributes for a specific merchant in Square.

List Payments

Tool to list payments by location and time range to enable reconciliation and net sales reporting from Square POS.

List Webhook Event Types

Tool to list available webhook event types.

List Webhook Subscriptions

List all webhook subscriptions owned by your application.

Remove Group From Customer

Removes a customer from a customer group.

Retrieve Bulk Customers

Tool to retrieve multiple customer profiles in a single request.

Retrieve Channel

Retrieve a Square channel by its ID.

Bulk Retrieve Channels

Tool to bulk retrieve multiple Square channels by their IDs in a single request.

Retrieve Customer

Tool to retrieve detailed information about a specific Square customer by ID.

Retrieve Customer Group

Tool to retrieve a specific Square customer group by ID.

Retrieve Customer Segment

Tool to retrieve a specific customer segment by its ID.

Retrieve Dispute

Tool to retrieve a Square dispute by ID.

Retrieve Location

Tool to retrieve detailed information about a specific Square location by ID.

Retrieve Location Custom Attribute

Retrieves a custom attribute associated with a location in Square.

Retrieve Location Custom Attribute Definition

Tool to retrieve a location-related custom attribute definition.

Retrieve Merchant Custom Attribute

Retrieves a custom attribute associated with a merchant in Square.

Retrieve Merchant Custom Attribute Definition

Tool to retrieve a merchant-related custom attribute definition from Square.

Retrieve Merchants

Tool to retrieve merchant information including status, main location details, and capabilities using Square's GraphQL API.

Retrieve Order

Retrieves detailed information about a specific Square order by its ID.

Retrieve Payment Link

Retrieves a Square-hosted payment link by ID.

Retrieve Token Status

Tool to retrieve information about an OAuth access token or personal access token.

Retrieve Webhook Subscription

Retrieve a Square webhook subscription by its ID.

Search Customers

Tool to search customer profiles in Square Customer Directory.

Search Orders

Tool to search orders across one or more Square locations with filters.

Submit Dispute Evidence

Submits evidence for a dispute to the cardholder's bank.

Test Webhook Subscription

Tests a webhook subscription by sending a test event to the configured notification URL.

Update Customer

Tool to update an existing Square customer profile.

Update Customer Custom Attribute Definition

Tool to update a customer-related custom attribute definition in Square.

Update Customer Group

Tool to update a customer group's information by its ID.

Bulk Update Customers

Tool to update multiple customer profiles in a single batch operation.

Update Location

Tool to update an existing business location in a Square account.

Update Location Custom Attribute Definition

Tool to update a location-related custom attribute definition in Square.

Update Merchant Custom Attribute Definition

Tool to update a merchant-related custom attribute definition in Square.

Update Online Checkout Location Settings

Tool to update location-level settings for Square online checkout.

Update Order

Updates an existing Square order by adding, modifying, or removing fields.

Update Webhook Subscription

Tool to update a Square webhook subscription.

Update Webhook Subscription Signature Key

Tool to rotate the signature key for a webhook subscription.

Upsert Customer Custom Attribute

Tool to create or update a custom attribute for a customer profile.

Batch Upsert Customer Custom Attributes

Tool to create or update custom attributes for multiple customers in a single batch request.

Upsert Location Custom Attribute

Tool to create or update a custom attribute for a location.

Batch Upsert Locations Custom Attributes

Tool to create or update custom attributes for multiple locations in a single batch request.

Upsert Merchant Custom Attribute

Tool to create or update a custom attribute for a merchant profile.

Batch Upsert Merchants Custom Attributes

Tool to create or update custom attributes for multiple merchants in a single batch request.

FAQ

Frequently asked questions

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.

Yes, you can. Vercel AI SDK v6 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.

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.

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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