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Square POS review (2026): the easiest start, with two catches
TL;DR: our verdict
8.4 / 10 Square is the best way to start accepting payments with zero monthly cost. No one else matches its free plan, $59 reader and 15-minute setup. The two catches: you are permanently locked into Square's processing (2.6% + 15¢, non-negotiable at small volume), and Square's risk algorithms have a long, documented record of freezing merchant funds, sometimes for months.
It's best for new businesses, mobile sellers, cafés and small shops under ~$250K/year. Look elsewhere if you process high volume (flat rates get expensive), run a full-service restaurant (Toast), or want to own your system outright with no processor lock-in (JET).
How much does Square POS cost in 2026?
Square unified its retail and restaurant pricing into three plans (the old $89 Retail Plus and $69 Restaurants Plus tiers are gone). Per location, per month:
| Plan | Monthly | Card-present rate | Online rate |
|---|---|---|---|
| Free | $0 | 2.6% + 15¢ | 3.3% + 30¢ |
| Plus | $49 | 2.5% + 15¢ | 2.9% + 30¢ |
| Premium | $149 | 2.4% + 15¢ | 2.9% + 30¢ |
Some add-ons show up later: Kitchen Display is $30/device/month ($20 on Premium), the Kiosk app is $50/device/month ($30 on Premium), and keyed-in or card-on-file payments run 3.5% + 15¢ on every plan. Custom rates only open up above roughly $250K/year in card volume.
In March 2025 Square quietly raised its card-present rate from 2.6% + 10¢ to 2.6% + 15¢. Five cents sounds trivial, but on 30,000 transactions a year it's $1,500.
What does Square hardware cost?
| Device | Price | What it is |
|---|---|---|
| Square Reader | $59 | Pocket tap/chip reader for a phone or tablet |
| Square Stand | $149 | Turns your iPad into a countertop POS |
| Square Kiosk | $149 | Self-order hardware (plus the $50/mo app) |
| Square Terminal | $299 | All-in-one handheld with printer |
| Square Handheld | $399 | Slim mobile POS (2025 release) |
| Square Register (2nd gen) | $899 | Full dual-screen countertop station |
You own the hardware outright, with no leases, and financing is optional. That beats the lease-heavy Clover reseller channel, though the hardware is a paperweight outside Square's ecosystem: it only processes through Square Payments.
The 3-year true cost
Single register, software + hardware only (processing excluded):
| Setup | 3-year total |
|---|---|
| Square Free + Register | $899 |
| Square Plus + Register | $2,663 ($49 × 36 + $899) |
| Square Premium + Register | $6,263 ($149 × 36 + $899) |
The Free plan is the cheapest way in: $899 over three years is as cheap as a countertop POS gets (a pay-once JET Topaz 2.0 station is $1,299). Processing makes the bigger difference. Square's flat 2.6% + 15¢ is fixed, while an owned system lets you negotiate. At $20,000/month in card sales, Square's rate is roughly $6,800/year; a negotiated interchange-plus account often comes in lower for the same volume.
What do Square users complain about?
- Fund holds and account freezes are the biggest complaint. Square's risk algorithms can hold deposits or deactivate accounts with little warning, with holds reported up to 90 to 180 days. Square has accumulated roughly 3,300 BBB complaints, and "Square froze my money" threads come up constantly on r/smallbusiness. Spiky or high-ticket sales patterns raise the risk.
- Escalating a support case is hard. Phone support exists, but getting past first-line help on account issues is a consistent pain point, especially when the issue is a hold.
- Flat rates get expensive at volume. There's no interchange-plus option below ~$250K/year, so growing merchants outgrow Square's pricing.
- Inventory is fine for simple catalogs but thin for matrix-heavy retail compared to Lightspeed.
Pros
- A free plan, the best $0 start in the industry
- Fastest setup and easiest staff training in its class
- No contract, cancel anytime, transparent published pricing
- Huge ecosystem: online store, invoices, payroll, banking
- Good, fairly priced hardware you own outright
Cons
- Locked to Square Payments; rates non-negotiable at small volume
- Documented pattern of fund holds and freezes (90 to 180 days)
- 2025 rate increase to 2.6% + 15¢; add-ons stack up
- Weak escalation path when something goes wrong
- Inventory and full-service restaurant depth behind specialists
Who should buy Square, and who shouldn't?
Buy it if you're starting out, sell on the go, or run a café or small shop and want the quickest way to start taking cards. Nothing gets you live faster, and the $0/month is real.
Skip it if you process serious volume (the flat rate becomes your biggest software cost), run a full-service restaurant (Toast is deeper), need serious inventory (Lightspeed), or want a system you own with processing freedom; that's the case for JET ($0/month, pay-once hardware, any processor).
Square POS FAQ
How much does Square POS cost per month?
$0 (Free), $49 (Plus), or $149 (Premium) per location, plus processing: 2.6/2.5/2.4% + 15¢ card-present respectively. KDS $30/device/mo, Kiosk $50/device/mo.
Can I use Square with another payment processor?
No. Square hardware and software only work with Square Payments, and that's the core trade-off of the free plan.
Does Square really hold funds?
It can. Risk-triggered holds of 90 to 180 days are the most consistent complaint in Square's record (~3,300 BBB complaints). Stable, predictable sales patterns rarely trigger them; spikes and high-ticket sales do.
Is Square good for restaurants?
For counter service, yes. For full service, Toast is stronger on table management, coursing and kitchen workflow.