Square POS Review 2025: Complete Guide, Pricing & Expert Analysis
Our Verdict: Square remains the best free POS system for small businesses in 2025. Its zero monthly fee option, transparent pricing, and versatility across industries make it ideal for startups, pop-ups, and growing businesses. The ecosystem has matured significantly, now offering everything from banking to payroll.
Square POS at a Glance
- Best For: Small businesses, retail, restaurants, services, pop-ups
- Price: Free – $60+/month (industry-specific plans)
- Processing: 2.6% + $0.10 (in-person)
- Contract: None – month-to-month
- Hardware: Free card reader with account
What is Square POS?
Square POS is a cloud-based point-of-sale system launched in 2009 by Jack Dorsey (Twitter co-founder). What started as a simple card reader has evolved into a complete business operating system. Square processes over $200 billion annually and serves millions of businesses worldwide.
The platform includes free POS software, payment processing, and a ecosystem of business tools including online selling, invoicing, payroll, and banking.
Square POS Pricing in 2025
Software Pricing
| Plan | Monthly Cost | Best For |
|---|---|---|
| Square POS Free | $0 | Basic retail, services |
| Square for Retail Plus | $60/location | Advanced retail inventory |
| Square for Restaurants Plus | $60/location | Full-service restaurants |
| Square Appointments Plus | $29/location | Service businesses |
| Square Online Plus | $29 | eCommerce features |
Payment Processing
- In-person (tap/dip/swipe): 2.6% + $0.10
- Online: 2.9% + $0.30
- Invoices: 3.3% + $0.30
- Manually-entered: 3.5% + $0.15
Hardware Pricing
- Square Reader (magstripe): Free with account
- Square Reader (contactless + chip): $59
- Square Stand (iPad mount): $149
- Square Terminal: $299
- Square Register: $799
Key Features
Point of Sale
- Intuitive checkout interface
- Custom item library with variants
- Discounts and modifiers
- Split payments and tips
- Receipts via email, text, or print
- Offline mode for internet outages
Inventory Management
- Real-time stock tracking
- Low stock alerts
- Barcode scanning
- CSV import for bulk updates
- Multi-location inventory (Plus plans)
- Purchase orders (Plus plans)
Reporting & Analytics
- Real-time sales dashboard
- Product performance reports
- Employee sales tracking
- Customer insights
- Export to Excel/CSV
- Custom report building (Plus plans)
Customer Management
- Customer profiles with purchase history
- Customer groups and segments
- Email marketing integration
- Loyalty program (add-on)
- Gift cards
Team Management
- Unlimited team members (Free)
- Permission levels
- Time tracking
- Tips management
- Square Payroll integration
- Scheduling (Plus plans)
Square Ecosystem
Square has built extensive ecosystem beyond POS:
Square Online
Free online store builder that syncs with your POS. Includes ordering, shipping, and pickup options.
Square Banking
Business checking account with no fees, instant access to sales, and savings features.
Square Loans
Business financing based on sales history with fixed fee, no interest, and automatic repayment.
Square Payroll
Full-service payroll starting at $35/month + $6/employee. Includes tax filing and direct deposit.
Square Marketing
Email and text marketing campaigns tied to customer data from POS.
Pros and Cons
What We Like
- Truly free: No monthly fees for basic POS
- Transparent pricing: Same rate for all merchants
- No contracts: Leave anytime
- Easy setup: Most users are live within hours
- Versatile: Works for almost any business type
- Ecosystem: Banking, payroll, loans in one place
- Strong offline mode: Keep selling during internet issues
What Could Be Better
- Processing rates: Not negotiable for small businesses
- Account stability: Some reports of sudden holds
- Industry depth: Specialists (Toast, Lightspeed) may beat Square in specific verticals
- Phone support: Can have wait times during peak
- Advanced features: Require paid upgrades
Who Should Use Square?
Ideal For:
- New businesses wanting to start free
- Pop-up shops and market vendors
- Small retail stores
- Quick-service restaurants and food trucks
- Service providers (salons, contractors, consultants)
- Businesses wanting one ecosystem for everything
Consider Alternatives If:
- You process over $250K/year (negotiate rates elsewhere)
- You need deep restaurant features (consider Toast)
- You need complex inventory (consider Lightspeed)
- You prioritize omnichannel eCommerce (consider Shopify)
Square vs Competitors
- Square vs Toast – For restaurant comparison
- Square vs Clover – For hardware comparison
- Square vs Shopify POS – For eCommerce focus
Customer Support
Square offers multiple support channels:
- Phone: 24/7 for all users
- Email: Response within 24 hours
- Chat: Available during business hours
- Community forum: Active user community
- Help center: Extensive documentation
Frequently Asked Questions
Is Square really free?
Yes, the basic Square POS software is free with no monthly fee. You pay only payment processing fees (2.6% + $0.10 per transaction). Advanced features require paid plans.
Does Square work offline?
Yes, Square can process card payments offline for up to 72 hours. Transactions sync when connectivity returns.
Can I use Square for restaurants?
Yes, Square for Restaurants offers table management, courses, and kitchen tickets. Free tier is basic; Plus ($60/month) adds advanced features.
What happens if Square holds my funds?
Square may hold funds if they detect unusual activity. Most holds resolve within 1-2 business days. Having complete business profile and consistent sales patterns reduces risk.
Can I integrate Square with other software?
Yes, Square integrates with QuickBooks, Xero, WooCommerce, and hundreds of other apps through the Square App Marketplace.
Our Bottom Line
Square is the best starting point for most small businesses. The free tier eliminates risk, the ecosystem provides room to grow, and the transparent pricing builds trust. While specialists may beat Square in specific industries, no other platform matches its combination of simplicity, value, and versatility.
If you are starting a business or want to simplify your current setup, Square deserves serious consideration.
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