Square vs. Shopify: Which Is Right for Your Business?

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Deciding factors
Square | Shopify | |
Payment processing fees |
|
|
Monthly fees |
| Shopify e-commerce plans:
Shopify’s alternative solutions for mainly selling in-person:
|
Hardware cost |
|
|
Contract length | None. Square doesn't require a contract. | Varies. All plans are month-to-month unless you sign up for a one-, two- or three-year agreement. |
Customer service | Phone, email, live chat and social media. | Email, chat and phone (though may only be available through callback service). |
Pros
Square
- More robust POS features. Because Square doesn't determine which features you can use based on a chosen plan, it offers more robust POS features for free.
- No monthly fee. By only charging processing fees, Square is likely cheaper for many businesses.
Shopify
- An online store is available in all plans. Shopify includes features for online stores in every plan, so you don't have to worry about paying extra for that option.
- Scalable plans. With multiple plan options, owners can scale their businesses without worrying about losing the features they need. They can move up to the next plan to take advantage of more features.
- Cheaper processing rates are available. For example, Shopify's more expensive plans come with cheaper processing rates to save businesses money if they need the full gamut of features.
Cons
Square
- Extra cost for online store features. Square requires businesses to choose a plan to use their online store options. There is a free plan, but the features are limited.
Shopify
- Variable processing fees. Not all businesses pay the same processing fees, meaning companies that can pay for more expensive plans will pay less per transaction.
Square features
Square POS software
2.6% plus 15 cents for in-person transactions with all free plans.
2.6% plus 10 cents for in-person transactions with paid restaurant plans.
2.5% plus 10 cents for in-person transactions with paid retail and appointments plans.
2.9% plus 30 cents for online transactions.
3.5% plus 15 cents for manually keyed transactions.
3.3% plus 30 cents for invoices.
- Loyalty rewards. Plans range from $45-$105 per month per location. Create a custom loyalty program to reward repeat customers.
- Email marketing. Plans range from $15-$40 per month (higher if more than 2,000 customer contacts). Create custom emails and track how customers interact with them.
- Payroll management. For the contractors-only plan, it's $5 per month per contractor. The plan for contractors and employees is $35 per month plus $5 per month for each person being paid. Payroll management allows you to track employees' hours, process payroll, file taxes and more.
- Accept and track transactions.
- Process payments in offline mode.
- Send email or SMS receipts or print receipts with available printers.
- Create discounts and limited-time offers.
- Keep track of customers in a directory.
- Accept online transactions with e-commerce stores.
- Customize and export sales reports.
- Manage inventory with stock alerts and integration options.
- Utilize third-party app integrations like QuickBooks and Wix.
Square e-commerce
Square POS hardware
$0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
$59 for Square Reader contactless and chip card reader.
$149 for Square Stand iPad POS or Square Stand Mount (iPad not included; monthly financing available).
$149 for Square Kiosk for self-serve ordering.
$299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
$399 for Square Handheld portable POS system with built-in barcode scanner (monthly financing available).
$799 for Square Register two-screen system (monthly financing available).
- Reader for magstripe. This reader only swipes magstripe credit cards and connects to a smartphone through a headphone jack or Lightning port. It requires you to use the Square App to process payments and doesn't need to be charged.
- Reader for contactless and chip. This reader only accepts chipped credit cards, contactless payments and digital wallets. It connects to a smart device by Bluetooth and uses the Square App to run transactions. 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.
- Square Stand. Connecting a tablet with the contactless and chip reader lets this system accept all types of credit cards along with scanning QR codes with the Square Cash App. It also swivels to allow customers to use the screen and can be mounted onto a counter.
- Square Terminal. As a handheld design with a countertop dock, this model accepts all credit cards and digital wallets. In addition, it prints receipts and can be connected to a tablet for a second screen.
- Square Register. This reader offers two screens so customers can see transaction details and accepts all payment types, including QR codes with the Cash App. It mounts onto a countertop for a complete register experience, but it doesn't print receipts or scan barcodes on its own.
Shopify features
Shopify software
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- Custom pricing for Shopify Plus.
- All e-commerce plans come with POS Lite for selling in-person. Upgrading to POS Pro for brick-and-mortar businesses costs an extra $89 per location.
- $5 for Starter plan, which includes one POS Lite location.
- $79 (when billed annually) for Retail plan, or $89 when paid monthly; includes one POS Pro location.
- 2.5%, 2.7% or 2.9% plus 30 cents for online payments for Advanced, Shopify or Basic plan, respectively.
- 2.4%, 2.5% or 2.6% plus 10 cents for in-person payments for Advanced, Shopify or Basic plan, respectively.
- Add the "Buy" button to your website to sell through your Shopify Payments plan.
- Accept credit card and digital wallet payments on the go and in person.
- Create invoices to send to customers and get paid by email.
- See financial reports.
- Create customer profiles
- Manage orders and products for limited inventory.
- QR code details for products.
- Issue gift cards.
- Split customer bills.
- Create customer discounts.
- Schedule local pickup and delivery.
- Create purchase orders.
- Receive low stock alerts.
- Run an analysis of inventory and create detailed inventory reports.
- Require manager approvals and create staff permissions depending on their roles.
- Create custom-printed receipts.
- Run daily sales reports.
Shopify e-commerce
Shopify POS hardware
- Chipper 2X BT Reader. This reader is compact and lets you tap, insert and swipe credit or debit cards. It also accepts Apple Pay and Google Pay. Because it connects to a smart device through Bluetooth, you'll need a compatible iPhone or iPad to run transactions. You also need Shopify Payments enabled to accept payment cards with this device.
- Retail Kit. This iPad stand and card reader combo accepts chip and contactless payments is a countertop system.
- POS Go. This handheld mobile device has a card reader and barcode scanner. The case provides protection and a hand strap.
- Tap to pay on iPhone. This is a payment acceptance capability that allows businesses on Shopify POS to accept contactless payments directly on an iPhone. This is currently built into Shopify POS software. It does not work on iPads.
Is Square or Shopify right for you?
Other POS systems to consider
Clover
- 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.
Stripe
- 2.7% plus 5 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 4.4% plus 30 cents for international card transactions.