Square POS review Should you be squaring up with Square? Find out everything you need to know about one of the world's fastest growing payment processors in this Startups Square review. Written by Aimee Bradshaw Updated on 26 February 2024 Our Research When judging the best POS systems, our writers work with expert researchers to focus on key features that matter most to small businesses. These include value for money – setup, hardware and transaction fees – help and support, plus the till, stock, and business management tools available. Written and reviewed by: Aimee Bradshaw Robyn Summers-Emler Digital Growth Editor Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. The POS market is a competitive one, with various free POS systems and POS providers competing on cost. So, Square’s ‘free POS’ approach is a true disruptor.The popularity of Square’s POS system has grown exponentially since its launch in 2017, and is now regarded as one of the best point of sale systems for small businesses in the UK, with the little Square card reader appearing everywhere from busy restaurants to coffee stands.Here are some reasons why its products and services might be the right fit for your business:Square’s POS software is completely free if using a reader and pre-existing iPad– with no setup fees or monthly subscription payments (See: Free POS software)Square has a wide range of hardware to suit your business needs – and to get started you only need to purchase the Square Reader – which costs just £16Square is incredibly adaptable and easily scalable with software specifically designed for retail (Square POS for Retail) and hospitality (Square POS for Restaurants)30-day free trial for all its productsSquare’s card reader and POS software work in tandem – offering your business a modern way to manage taking paymentsTo work out which Square device is best for your business size and needs, you can use the form below to get started comparing Square POS products: How many POS terminals does your business need? Just 1 up to 5 5+ Unsure Compare Costs If you want to carry out further research, read on for a detailed outline of Square’s products and services to help you decide on your best course of action in regards to implementing electronic point of sale systems in your business. In this article, we cover: Square review overview Square card reader review Square POS equipment review Square software: what do you need to know? Square for restaurants Square pricing Square customer reviews Square alternatives Square review: the verdict Square review overviewSuitable for: small businesses and sole tradersIndustries catered to: retail, hospitality, health and beauty, services 4.7 out of 5 Price 5 Help and Support 5 Till Features 3.6 Compare Costs Square’s card reader looks fairly basic – it’s a little square gadget that connects wirelessly to your mobile phone or tablet. But paired with Square’s software, it offers a sophisticated payment solution for growing businesses. ‘Growing’ is the key word here. Why? Square charges businesses 1.75% per transaction, which is fine for businesses that take a couple of thousand pounds a month. Once you start taking more than that, however, you may be better off approaching a bank for a merchant account, as it tends to come with lower transaction fees. Remember, Square’s basic point of sale software package is free. And those that do want more from their POS software can integrate additional software available from the Square App Marketplace or upgrade to Square for Restaurants for a reasonable monthly fee. In this Square review, we’ll make sure we cover the Square card reader, hardware (including the clever Square Terminal), software, and other relevant Square products, so you can be sure you’re making the right move for your business. Square card reader reviewSquare’s card reader is one of the smallest on the marketSquare’s pocket-sized card reader may look simpler than its counterparts from other providers, but in fact, it’s capable of exactly the same. Although it lacks a pinpad, this clever device communicates with Square’s software, so when a customer enters their pin details, they can enter it on the mobile or tablet hosting the software.Sound a little dodgy? Don’t worry – Square’s device meets the strictest PCI standards, so you can use it with confidence.Square card reader: key information What do you really need to know before you commit yourself to a Square card reader?Square card reader works on a pay-as-you-go basis – that means you pay a one one-off fee for the card reader, then you’re charged 1.75% on every transaction you make Square deposits your funds into your bank account in one to two daysSquare doesn’t require you to have a merchant account. All you need to do is enter your bank account details on the app (must be a business or director account)Priced at £19, Square’s card reader is one of the cheapest on the marketSquare will perform a credit check when you sign up Square card reader prosSquare card reader consSquare deposits funds into your bank account within one to two daysSome customers may not like the chip and pin functionThe battery is designed to last all dayThe card reader isn’t as ergonomic as othersThere are tons of integrations including a variety of ecommerce platformsYou can receive lower transaction fees with a merchant accountFree to deposit cash transactionsNot suitable for high risk industries (strong likelihood of refunds and returns)Square charges 1.75% per transaction, no matter the transaction sizeTake payments offlineSo what do you need to know about the Square card reader?Is the Square card reader easy to set up? The Square card reader is super-easy to set up, as it connects to your device via Bluetooth Low Energy (BLE). How do you set up the Square card reader? Make sure your Bluetooth is on, go onto the app, head into settings, and select the Square card reader. Hold down the power button on your card reader, wait for the orange lights to start flashing, and then the two devices will pair automatically. Easy!How does the Square card reader work alongside the apps?You carry out most of the transaction on the Square point of sale app – and the whole process is really slick. Select which items your customer wishes to purchase, or simply type in the sum of the transaction. Press ‘charge’, and wait for the green light to appear on your reader. Then you’re ready to take the payment. Can I take ecommerce payments with Square? Yes, you can. Square is actually one of the most favourable mobile payment options for ecommerce businesses, due to the sheer number of ecommerce options it has. You can opt for the Square Online ecommerce platform, choose from the likes of Wix or WooCommerce, or use a Square API to build a payment processing platform into your own website. Square charges a slightly higher 2.5% for every transaction made through your website. You’ll be able to view these transactions alongside your shop transactions on the Square Dashboard, meaning you’ll have a complete bird’s eye view of your sales landscape. What else do we love about the Square card reader? Square’s card reader accepts payments from credit cards, debit cards, American Express, and mobile payment apps – all for one fixed rate. This means there are no additional hidden fees or charges.Square also allows you to take payments without a merchant account. This means that funds are paid into your business or director’s account in one to two days, rather than several days or weeks. It connects to your tablet or smartphone via Bluetooth or cable, so you can choose whether you prefer a fixed or mobile payment setup. Square POS equipment reviewBuild your own Square POS package using a blend of branded and third party productsSquare’s POS equipment consists of third party and branded equipment. Its branded equipment includes the Square card reader, iPad stand, and Square Terminal, which we’ll talk about in more detail later. You can choose to purchase Square’s equipment separately – as and when you need it – or opt for one of Square’s hardware bundles, which offers retail and hospitality businesses all the equipment they need to get started. Square POS equipment: key information What do you need to know before you invest in Square POS equipment?The Square Terminal is a nifty all-in-one device that allows you to take payments, process them, and print receiptsSquare has a number of hardware kits available for retail and hospitalityConnect Square equipment via Bluetooth, ethernet, or cable Square POS consists of third party printers and scanners, meaning a lot of its equipment is compatible with a range of POS software So what do you need to know about Square POS?We answer some of the main concerns that people have before purchasing a Square POS system. What POS equipment do I need? When it comes to POS equipment, Square gives businesses a number of options. The one thing it has over its competitors is the Square Terminal, which for £200, gives businesses the means to process payments, manage inventory, and print receipts. While the Square Terminal is great for bars and small retail businesses, restaurants and shops with large inventories may want to consider a more sophisticated equipment package, such as one of Square’s iPad kits. These kits include everything a retail or hospitality business will need to get going, including an iPad, stand, and receipt printers. What about if I want to move to another provider later on?Square’s card reader and Terminal don’t integrate with software from other providers, but because Square uses printers and scanners from a third party, you should be able to integrate them into your new system. How does Square’s POS system work?Square’s POS system communicates via Bluetooth, although users can choose to connect the card terminal via USB if they invest in a Square Stand. To sync your POS equipment with the app, simply head into the settings tab on the app, select the piece of equipment you want to sync, press the pair button on your equipment, and the Bluetooth will do all the hard work. The cash drawer does work slightly differently, though. For the cash drawer to work, you need to connect it to your printer. This is because the printer triggers the cash drawer to open each time it prints a receipt. So long as the printer is connected to the Square software, your whole system will be able to communicate. Are there any downsides to Square’s POS equipment? While the Square Terminal is a great device to get your business going, it can be a little limiting. It works on Wi-Fi, rather than a mobile network, and the device software doesn’t offer as many features as the full version of the retail or hospitality software that you can download onto an iPad or mobile. If you do want to integrate a cash drawer or any additional accessory with the Square Terminal, you’ll need to purchase the Square Hub separately. Square softwareSquare offers two software packages – Square Point of Sale, and Square for Restaurants. Similar to other POS providers, Square’s primary point of sale software is suitable for retail businesses and simple food and drink setups, while its restaurant-specific software offers sophisticated features for restaurant owners.What do you need to know about Square softwareSquare Point of Sale reviewSquare has packed a lot into its Square Point of Sale software. Plus, there’s potential to integrate several free extensions – including sophisticated inventory and team management – as well as third party apps.The software is really easy and intuitive to use, which means you don’t need to waste valuable business hours training new staff members.You can also link your in-store software to your ecommerce store, meaning all of your sales data will appear in one place, giving you a bird’s eye view of your business performance. Square Point of Sale app: key information What do you need to know before you download the Square Point of Sale app? It’s one of the most sophisticated free point of sale apps on the marketIntegrate other software features, such as employee and inventory managementThere are tonnes of compatible third party apps to integrateIntegrate Square Dashboard for free, digestible reports on things like payment types and top selling productsSquare allows you to provide physical and online gift cardsHospitality business owners will be able to send orders to a kitchen receipt printer and split bills at the table Square Point of Sale pros and consSquare Point of Sale prosSquare Point of Sale consIt’s freeLimited features for restaurantsGood sales reportingLimited customer relationship managementSeparate stock control integration It’s only compatible with the Square card reader and Square TerminalData is stored in the cloud, meaning you can access it on any deviceAccept cash transactionsCompatible with Bluetooth printers, cash drawers, and barcode scannersIntegrates with lots of ecommerce names, including Square OnlineSquare Point of Sale features: the detailsFor free software, Square Point of Sale has some great features – most notably its reporting, inventory management, and staff management integrations. While not as feature-rich as paid-for POS software, it does provide retail and small hospitality businesses with more than enough to get going. Let’s have a look at some of its top features in more detail.Adding and managing stockSquare makes it super-easy to add and manage stock. Simply head into the items tab of the app, go into items, and fill in the item details. If you’ve received more stock, you can go into the item, select ‘receive stock’, and add the number of items you’ve received. You can split your stock into categories, as well as add modifiers, such as selecting to add milk or whether the item requires packaging. Analytics and reporting Square Dashboard is a hub where you can view all of your sales figures in one place. Rather than existing within its POS app, the Square Dashboard is a separate, sophisticated piece of software that breaks down things like payment type, individual customer spend, and your top selling items.You don’t have to be data-savvy to understand your figures – Square makes your reports easy to digest, allowing you to keep a close eye on company performance. Staff managementSquare’s staff management is part of the Square Point of Sale app. It’s great for businesses that rely on creating rotas for part time staff. There’s a free plan, which gives you access to time-keeping, payroll exports, and break tracking, while the paid plan allows you to track staff sales performance, as well as keep a closer eye on break times. Square for Restaurants: the detailsWhile the Square Point of Sale app is enough for counter-based hospitality businesses, those that offer table service may want to try Square for restaurants. What do you need to know before you download the Square for Restaurants app? It offers sophisticated menu managementManage your floor plan to maximise your coversIntegrates with your website, and order systems from the likes of Deliveroo and Just EatThere are three pricing tiers to choose from, and you can upgrade or downgrade as and when you need to The software is only compatible with iPads Square for Restaurants prosSquare for Restaurants consFree version availableMost of the best features are paid-forSophisticated table and order management featuresBackend reporting isn’t as sophisticated as other restaurant POS systemsIntegrates with takeaway service providers (additional cost)Only compatible with iPadsIncludes team management tools24/7 support only available with paid packageData is stored in the cloud, meaning you can access it on any deviceNo ingredients trackingMulti-location management as standardSo what can its features do for your business?Menu managementSquare for Restaurants gives you the freedom to create a menu interface that works for your business. You can set up a function which allows you to easily add discounts (think happy hour), and if you want to add a bunch of new menu items, you can do so speedily with Square’s Bulk Addition feature. Just bear in mind that the initial menu set up will be fiddly, no matter how intuitive it’s meant to be.Table managementCreate a digital version of your floor plan, and use that to manage your tables. You can assign a cheque to the table, or even to a specific seat.If you have customers waiting for tables, you can mark on your floor plan which tables you think will finish first, so you can ensure they’re cleared as soon as possible.Takeaway and deliveryDon’t rely on walk-ins alone. Take advantage of the Square Online free website tool and allow customers to order online, too.If you don’t have delivery capacity, you can always install the Deliverect extension, which integrates your Square POS with order platforms such as Deliveroo or UberEats for £39/month (+VAT). Your POS system will process the orders as they come in, and send them straight through to the kitchen. Square pricingSquare’s pricing is incredibly transparent. Its software is free – unless you opt for the paid version of Square for Restaurants – and it charges a set fee for both present and card-not-present transactions. There’s a page dedicated to pricing on its website, but we’ve given you the lowdown on how much certain Square packages could cost your business below. Square card reader basic packageSquare card reader£19Point-of-sale appFreeCustomer supportFreeInvoice payments2.5% per transactionAccounting software integration Xero integration £10-£27.50/monthEcommerce and remote payment processing2.5% per transactionSquare for Restaurants basic packageSquare card reader£19 Point-of-sale appFree, £69, or customCustomer supportFreeInvoice paymentsFreeAccounting software integration Xero integration £10-£27.50/monthEcommerce and remote payment processing 2.5% per transactionBear in mind that the pricing above represents the minimum outlay, and does not take into consideration the cost of an iPad or tablet. To give you an idea of how much a Square POS package would cost you including equipment, we’ve provided you with some scenarios below.Square retail equipment costSquare card readerSquare Dock iPad standReceipt printer Printer paperScannerCash drawerApple iPad*Total: £649 (+VAT)Square for Restaurants equipment costSquare card reader Square Dock iPad standReceipt printerKitchen printerReceipt paperCash drawerApple iPad*Total: £860 (+VAT)*iPad sold at online retailers for £279 Square customer reviewsScoring an average of 4.6 across all major online review platforms, Square certainly knows how to please its customers. Square’s customers are generally happy with the simplicity and intuitiveness of its products, and find that this is enough to compensate for its slightly higher transaction fees. According to customer reviews, Square’s limitations seem to lie in its lack of built-in customer relationship management features, and the reliability of some of its integrations. Let’s hear from a small business owner. Startups spoke with Hugh Topping, Director of Topping and Company Booksellers, who told us why he chose to invest in Square Point of Sale. “We chose Square because the Square Terminal provides the freedom we need to take payments on and offsite, but also because we love the elegance of the design and the promise of a system that is faster and more straightforward for the business.Apart from the freedom it’s given us, we love the back-end reporting, and the visibility it gives us into our finances. It’s also a talking point with our browsers, who regularly comment on how snazzy it looks!” Square alternativesThere are lots of alternative options to Square. We’ve provided you with a selection below. Swipe right to see more 0 out of 0 backward forward Card Reader Square Card Reader Zettle Card Reader SumUp Card Reader Worldpay Card Reader PayPal Here Device Cost £19 Device Cost £29 Device Cost £59 Device Cost £17.95/month Device Cost £45 on offer here Transaction Fee 1.75% Transaction Fee 1.75% Transaction Fee 1.69% Transaction Fee 2.75% + 0.25p Transaction Fee 1.5% For more information on the different payment processing providers, take a look at our page on the best card reader options for a small business. Square review: the verdictThanks to its standard transaction fee, free software, and third party integrations, Square is a great option for small businesses looking for an easy and affordable way to start taking payments.With no set-up costs and no monthly fees, Square Point of Sale is a great base package for startups or growing businesses. And with tons of management features included, Square for Restaurants offers everything hospitality business owners need to succeed. Even if Square’s software doesn’t quite offer everything you need, there are plenty of third party integrations available. This means businesses are in complete control of their point of sale setup, and can upgrade, downgrade, or integrate additional software as and when they wish. Here’s why we think Square is a great option. Transparent pricing – know exactly how much you’ll pay out at the end of the monthLow fees – Square charges 1.75% for each transaction In-depth reporting – Square has developed a digestible dashboard to display your sales figuresSolid customer support – and it’s free!Heaps of third party integrations – Square allows you to build your point of sale package as your business growsThat being said, there are some drawbacks. While its transaction fee is fairly reasonable, there are some better rates out there for businesses that are taking more than £10,000 a month. You could also get in touch with Square’s customer service team to see if they could offer you a special rate.While the base package is free, all of Square’s third party integrations come with their own pricing plan. This means the more features you need, the more expensive it becomes. In some cases, you may be better off going for a paid plan offered by a different point of sale provider.An alternative is Zettle, and we have a full Square vs Zettle review. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Aimee Bradshaw