Clover vs. Square: Which Is Right for Your Business in 2025?

Clover and Square can both help businesses in a wide range of industries. The biggest difference between these point-of-sale systems is how they process payments.

Choose Square if you want a turnkey, all-in-one solution. Need more customization for your specific business? Clover is the better fit.

Clover pros and cons at a glance

Square pros and cons at a glance

Clover vs. Square: Head-to-head comparison

Where Clover stands out

Flexibility in payment processing

If you value having your own merchant account or working with a different payment processor provider, Clover can likely support that. More than 3,000 retailers sell Clover products, many of which also offer merchant accounts and payment processing services. If you already have a merchant services account, you can call Clover to see whether it’s supported. Just make sure to purchase hardware directly from that provider, so that it’s programmed correctly.

There are pros and cons to using your own merchant services provider rather than working with a payment service provider (PSP), like Square. In particular, PSPs allow you to start accepting payments almost immediately. But because they aggregate other businesses’ funds into one account, there’s a greater chance of account freezes. When you have your own merchant account, you don’t cede control of your funds in that way.

» MORE: Check out our list of best credit card processing companies

Lower transaction fees for some users

Clover’s in-person transaction rates start low at just 2.3% plus 10 cents. If you work with your own payment processor, your transaction fees may be lower than what’s quoted on Clover’s website. The larger your business is, the more you stand to benefit from opening your own merchant account, because the per-transaction savings can add up over time.

If you’re looking for the most affordable POS solution, do some math to see whether Square or Clover would be cheaper for your business over time.

» MORE: Try our credit card processing fees calculator

Where Square stands out

Merchant account included

Square users become sub-merchants under the company’s aggregated merchant account. That way, they don’t have to open their own individual merchant accounts. This shortens the startup time, since no credit check or lengthy application is needed.

When you purchase a Clover POS system, however, you have to apply for a merchant account. If you already have a merchant account and don’t want to switch, this may be a plus — provided your existing account is supported. But if you’re just starting to accept payments, it may introduce extra confusion.

» MORE: What is a payment processor?

More affordable POS hardware

You can start using Square with its free, quarter-sized card reader that connects to smartphones. Clover doesn’t offer any free hardware options, and its card reader alone costs $199.

Square’s other hardware options, like its countertop register and handheld terminal, are also significantly less expensive than the Clover equivalents. Both providers, however, do allow you to pay off your hardware in installments, which reduces the upfront cost.

» MORE: Best card readers for small businesses

Free online store

Square lets businesses build a website for free. And, unlike many of its competitors, it doesn’t charge extra for online ordering capabilities. You can upgrade your Square Online plan if you’d like your own custom domain name and additional features.

Clover charges more per online transaction, and retailers must pay extra to build an online store or integrate with an existing one. Its restaurant plans, however, do include online ordering pages at no additional cost.

Is Clover or Square right for your business?

Clover is better for businesses that need a customized payment solution and are willing to take the time to open their own merchant account. These steps can make the shopping process more complex, but they could save you money on transaction fees. Plus, it’s less likely your transactions will temporarily be suspended, which has been a source of frustration for some Square users.

Square, on the other hand, is better for businesses looking for a straightforward and quick sign-up process. The solution can support the bulk of a business’s payments and POS needs, from its reasonably priced hardware options to its all-in-one, built-in payment processing services.