Our Take
5.0
NerdWallet rating
The bottom line:
Square is one of a few providers in the space that offers a free version of its POS system. The free version comes with a long list of features and functionality, including sales tracking and reporting, offline mode for accepting payments without a Wi-Fi connection, and a customizable interface. It’s a strong choice for businesses that don’t require specialized or advanced POS features.
Square POS
Payment processing fees
2.6% + 15¢ in-person; 2.9% + 30¢ online.
Monthly fee
$0.00 and up.
Learn more
on Square's website
Pros & Cons
Pros
- Free plan option available.
- 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.
Cons
- Can’t run on Windows devices.
- Complex industries might prefer a more specialized system.
Full Review
Square is a standout point-of-sale system and often a good option for small businesses. Its wide range of features and hardware can be tailored to fit a variety of business types. The pricing is transparent, and the free plan is one of the most powerful no-cost POS systems we’ve seen. It also earned top spots in NerdWallet's best POS systems roundup and best business software lineup.
However, Square may not be the right fit for businesses that want a highly specialized POS system with advanced features. And if you’re a dedicated Windows user, the Square POS app won’t work with your device.
Square is best for businesses that:
- Use iOS or Android devices. Square is not compatible with Windows devices.
- Need general POS features and functionality. Square offers a robust POS system at no cost, but it does lack tools and features that more specialized and industry-specific systems offer.
- Don’t want to commit to a long-term contract. You can easily start and stop use of Square without penalty.
Deciding factors
Payment processing model | Flat-rate. |
Payment processing fees |
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Monthly fee |
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Hardware cost |
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Contract length | No contract. |
Customer support | Email, chat and online knowledge base. Phone support (1-855-700-6000) available Monday to Friday, 6 a.m. to 6 p.m. Pacific time. |
💬 From our Nerds: Recent changes to Square’s fees
“Square is known for its free POS plans for retail shops, restaurants and appointment-based businesses. But subscribing to them now comes with a new tradeoff.
“The company updated its in-person transaction fees for Free plan subscribers from 2.6% plus 10 cents to 2.6% plus 15 cents. (In-person rates did not increase for paid plans.) The change took place on Feb. 25, 2025, for new sellers and will go into effect on March 27, 2025, for existing ones.
"Square's 5-cent-per-transaction price hike isn't great news for small-business owners. But overall, Square's rates are still competitive. And its in-person transaction fees for paid retail and appointments plans are still less than those of many competitors."
Where Square stands out
Simple, transparent prices
Square’s prices are displayed prominently on its website. Also, its payment processing fees are a flat percentage of each transaction, plus a flat fee. Clear pricing makes it easier to predict costs and compare your options.
Square transfers funds to your bank account on the next business day or — for a 1.75% fee — instantly. If you sign up for a Square Checking account, which comes with a debit card, instant transfers are available for free.
Use our Square fee calculator to figure out what fees you may incur for in-person and online transactions.
Diverse hardware lineup
Square offers an array of mobile and stationary POS hardware options, ranging from a quarter-sized reader that plugs into your phone, to a register with two touch screens, as well as hardware accessories, such as barcode scanners, receipt prints and cash drawers. With that flexibility, you can design a variety of checkout experiences: You can set up a register at a store, customers can pay at their table, or you can swipe cards out of a truck.
Square also offers Tap to Pay on iPhone, which lets merchants accept card payments using only a regular iPhone with the Square POS app. Customers hold their cards or their own iPhone wallets near the merchant's phone to pay.
Long list of POS features
Square’s overall lineup of features is impressive and can work for a variety of industries. In addition to the core features that come with Square POS, you have the option to add additional features that sync, like a loyalty program, email marketing, payroll or an online store. Although you might not use every feature in Square's system, having so many options in one ecosystem can be a time saver for small businesses.
No chargeback fees
Many providers that handle payment processing issue a chargeback fee to the merchant any time a customer disputes and/or reverses a credit or debit transaction. These fees can be anywhere from $20 to $100. Some providers will refund the chargeback fee to the merchant if the merchant wins the dispute; however, other providers have begun updating their terms to stipulate no refunds of chargeback fees. Square, therefore, stands out among the competition, as it does not issue a fee for chargebacks.
Where Square falls short
More specialized POS systems exist
Square offers different versions of its POS system for restaurants and retail. That said, some other POS systems designed for a specific industry might offer even more features that meet the nuanced needs of a business. If you want a restaurant POS system, Toast might be a better option because of features like multiple language support on its kitchen display system or its spill-proof and water-resistant hardware.
Doesn't run on Windows desktop or tablet
Square currently works on iOS and Android phones and tablets. But it won’t work on a Windows device. Consider the Lightspeed Retail POS system if you want to use a Windows desktop or tablet device. Lightspeed Retail is compatible with both macOS and Windows operating systems.
Alternatives to Square
Clover
Why we like it: Clover’s flat-rate processing fees are right on par with Square’s. Although Clover doesn’t offer a free POS software plan as Square does, the starting price point is reasonable compared with many other providers. Clover’s hardware is pricier than Square’s, but it has a strong reputation for durable, high-quality hardware products. Clover’s retail POS system comes with a long list of relevant features that many merchants would find sufficient for running their business. Read our full Clover review.
- $0 for Clover Go Payments, Retail Starter and Personal Services Starter plans.
- $14.95 for Clover Go Essentials, Professional Services Starter, and Standard and Home & Field Services Starter and Standard plans.
- $84.95 for Retail Standard and Professional, Personal Services Standard and Advanced, and Home & Field Services Advanced plans.
- $89.95 for Full-Service Dining Starter and Quick-Service Dining Starter and Standard plans.
- $104.90 for Retail Advanced plan.
- $109.90 for Full-Service Dining Standard and Quick-Service Dining Advanced plans.
- $129.85 for Full-Service Dining Advanced plan.
- 2.3% plus 10 cents for in-person transactions on Full-Service and Quick-Service Restaurant plans.
- 2.5% plus 10 cents for in-person transactions on Retail Standard and Advanced plans, Professional and Personal Services Standard and Advanced plans, and the Home and Field Services Advanced plan.
- 2.6% plus 10 cents for in-person transactions on the Retail and Personal Services Starter plans and the Home and Field Services Standard plan.
- 3.5% plus 10 cents for online or keyed-in transactions.
- $199 for chip, swipe and contactless Clover Go card reader.
- $349 for countertop card reader.
- $749 for Clover Flex mobile POS with receipt printer.
- $699 for slimmer Flex Pocket with no printer.
- $849 for Clover Mini POS.
- $799-$899 + $25 per month for kitchen display system.
- $1,799 for Clover Station Solo.
- $1,899 for Clover Station Duo.
- $3,499 + $34.95 per month for self-ordering kiosk.
PayPal Zettle
Why we like it: Like Square, PayPal Zettle offers its software free of charge. The Zettle POS can process all payment types, including cards, digital wallets, manually entered transactions and QR codes. Similar to Square, PayPal Zettle includes general POS functions like inventory management and reporting, as well as third-party software integrations for accounting and e-commerce. Read our full PayPal Zettle review.
Monthly fee: $0.
- 2.29% plus 9 cents for in-person and QR code transactions.
- 3.49% plus 9 cents for manual-entry card transactions.
- 2.99% plus 49 cents for invoicing (payment made with card).
- 3.49% plus 49 cents for invoicing (payment made with PayPal).
- $29 for first card reader; additional readers cost $79. Price includes USB cable.
- $199 for terminal only.
- $239 for terminal with barcode scanner built in.
- $229 for Store Kit Mini (tablet stand with card reader and dock).
- $339 for Store Kit Portable kit with mobile card reader and printer.
- $479 for Store Kit Standard (tablet stand, card reader, dock and printer).
- $699 for Store Kit Plus (adds barcode scanner).
Compare POS providers
To compare POS options, check out NerdWallet’s list of point-of-sale systems that are best for small-business owners. Our recommendations are based on the provider’s pricing and transparency, software and hardware options, system functionality, customer support, software integrations and contract requirements.
Learn more
on Square's website
Methodology
NerdWallet’s point-of-sale systems provider ratings reward companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including cost, system capabilities, contract requirements, customer service and integrations and add-ons. Learn more about how we rate point-of-sale (POS) systems providers.
These ratings are a guide, but services, hardware and pricing can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Frequently Asked Questions
Square POS has a lot of strengths compared with many of its competitors. However, it's not compatible with Windows devices, so it's not a good fit for businesses that don’t use iOS or Android devices. It also lacks some of the features and functionality that more specialized systems offer.
Square and Clover have many similarities, including their flat-rate payment processing model, a variety of hardware options, a known and trusted brand name, and offerings designed for specific industries, including restaurant and retail. Unlike Square, however, Clover offers merchants flexibility in the merchant service provider they use for payment processing; and Clover charges slightly more competitive transaction rates. Clover does, however, require a contract. Deciding which POS provider is a better fit for your business will ultimately come down to considering each company’s offerings alongside your specific business needs.
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