Clover vs. Square: Which Is Right for Your Business in 2025?
Square is an all-in-one solution with simple pricing, but Clover allows you to set up your own merchant account, which could be more cost effective for your business long term.
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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 is better for:
✔️ A more customized payments and POS solution.
✔️ Potentially lower processing fees.
✔️ Around-the-clock phone support.
Square is better for:
✔️ A simple payments and POS solution.
✔️ Quick startup process.
✔️ Free POS plan and inexpensive hardware.
Square POS
30-day free trial
of the Plus plans.
Clover pros and cons at a glance
Free plan option for Clover Go card reader.
In-person processing rates are as low as 2.3% plus 10 cents.
Can purchase POS systems from third-party payment processors.
24/7 phone support.
Online processing rates are more expensive than Square.
Must sign a 3-year contract to receive promotional pricing.
Popular accounting integrations cost extra.
Square pros and cons at a glance
Free plan options for full POS system setups and card readers.
Offers helpful related services, like payroll, that integrate closely with its POS system.
No long-term contracts or termination fees.
All plans include a free online store.
Can’t run on Windows devices.
Complex industries might prefer a more specialized system.
24/7 phone support not available for all plans.
Undecided on Square and Clover?
Explore NerdWallet’s list of top POS systems, which includes both options, along with a handful of other popular choices for various industries.
Clover vs. Square: Head-to-head comparison
Clover | Square |
|---|---|
Monthly POS software costs | |
$0 to $129.85 per month. | $0 to $165 per month. |
Payment processing fees | |
|
|
Hardware costs | |
|
|
Customer service | |
Phone support available 24/7, plus chat support. | Phone (hours may vary by plan), email, and live chat support weekdays from 4 a.m. to 6 p.m. PST. |
NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 |
Payment processing fees 0.40% + 8¢ plus interchange, in-person; 0.50% + 25¢ plus interchange, online. | Payment processing fees 2.7% + 5¢ in-person; 2.9% + 30¢ online. | Payment processing fees 2.6% + 15¢ in-person; 2.9% + 30¢ online. |
Monthly fee $0 | Monthly fee $0 | Monthly fee $0 Starts at $0/month for unlimited devices and locations. |
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.
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.
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.
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.
» Looking for free options? Read our roundup of the best free accounting software.
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