Square
FreemiumCommerce tools for every kind of business
About Square
Square is the in-person payment and POS platform that most small retail and food businesses start with. The free magstripe reader gets you accepting cards immediately. Square Terminal ($299) is a complete countertop POS with built-in printer. Square Register ($799) is the dual-screen full setup for higher-volume locations. Card processing fees: 2.6% + $0.10 in-person, 2.9% + $0.30 online, 3.5% + $0.15 for manually-keyed transactions. No monthly fee for the basic POS. Square for Restaurants, Square for Retail, and Square Appointments are vertical add-ons at $60-$165/month per location. Payroll is $35/month plus $5/employee. The platform covers invoicing, inventory tracking, team scheduling, loyalty programs, and a basic online store via Square Online with a free tier. Offline mode continues processing during internet outages and syncs when connectivity returns. The main r/smallbusiness complaints: customer support is hard to reach for disputes, and Square can hold funds for 30 or more days for flagged transactions with minimal explanation. These holds can seriously disrupt cash flow for businesses on thin margins. Skip Square if you run a high-volume restaurant needing advanced table management (Toast handles this better), a business requiring hardware flexibility beyond Square's lineup (Clover), or an omnichannel retailer with a substantial online store (Shopify POS integrates better). If you process above $250,000/year in card volume, direct processing with negotiated interchange-plus rates will likely cost less.
Key Features
Pricing Plans
Free
- POS app
- Online store
- Invoicing
- 2.6% + 10c per tap
Plus
- Advanced POS features
- Seat management
- Advanced inventory
- Custom permissions
Premium
- Everything in Plus
- Premium support
- Advanced reports
- Lower processing rates
Pros
- Free POS system with no monthly fees
- Excellent hardware options for in-person payments
- Integrated online and offline selling
- Fast next-day deposits as standard
- Easy to set up and start accepting payments
- Growing ecosystem with payroll, banking, and loans
Cons
- Processing fees are higher than negotiated merchant accounts
- Limited customization on the free tier
- Account stability issues reported by some merchants
- International availability is limited
- Advanced features require paid add-ons
- Not ideal for high-volume or enterprise businesses
Best For
- small retail and food businesses that need in-person card acceptance immediately
- service businesses using Square Appointments for booking and payment in one flow
- businesses that want POS plus basic online store without two separate systems
- low-volume sellers where free hardware and no monthly fee beats alternatives
Not Ideal For
- high-volume restaurants where Toast offers better table management and kitchen display
- omnichannel retailers where Shopify POS integrates better with an existing online store
- businesses needing to accept international card types reliably (Stripe handles this better)
Potential Deal Breakers
- funds can be held 30+ days for flagged transactions with minimal explanation or recourse
- customer support for disputes is slow and hard to reach
- vertical-specific add-ons (Restaurants, Retail) add $60-$165/month per location
Data & Privacy
Owned by Block Inc. Payment processor handling sensitive financial data. Shares some transaction data within Block ecosystem. AI features analyze sales patterns. PCI DSS Level 1 certified. SOC 2 certified.
Who Is This For?
Hands-on tested May 2026
Signup Experience
Email signup with business details required -- business type, address, and EIN or SSN for verification. Free card reader included with first account. POS app downloads in minutes and card-present transactions work immediately. Dashboard covers sales, inventory, and reporting in a clean interface.
For Home Users
Free POS app with no monthly fees is ideal for occasional selling at markets, fairs, or pop-up events. 2.6% + 10c per tap is competitive for low-volume sellers. No contracts or minimums. One of the easiest ways to start accepting in-person payments without a merchant account.
For Business Users
Free plan covers most small retail and food businesses. Restaurant and retail plans at $60/mo add dedicated features like floor plans, modifier libraries, and shift management. Hardware ecosystem from $49 readers to full POS terminals. Better fit than Stripe for businesses that primarily sell in person.
Our Verdict
Square is the right starting point for most small in-person businesses — free hardware, no monthly fee, and setup takes minutes. The payment processing fees (2.6% + $0.10) are standard, and the ecosystem of add-ons covers most small business needs. The fund hold risk is real; keep a buffer in your bank account and don't depend on same-day Square deposits for payroll.
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