Square POS System Cost Guide: Pricing, Fees & Hidden Costs

As a small to medium-sized restaurant owner, you know it’s important to have a reliable, easy-to-use POS system. Square has become a go-to choice for many small to medium restaurants—but how much does their POS system really cost?

The answer depends on a few key factors: your software plan, hardware needs and Square rates for payment processing fees. Whether you’re just starting out or looking to upgrade, understanding these costs is crucial for keeping your margins in check. 

In this guide, I’ll break down everything you need to know about the Square POS system cost so you can decide if it’s the right fit for your restaurant.

How much is Square POS software?

Square offers flexible pricing plans to fit different business needs, whether you’re just starting out or running an established restaurant. You might be curious about how much Square costs a month.

Let’s break down the POS system price options and what they offer:

Free POS plan

Square’s free plan is priced at $0 per location/month, excluding processing fees and any additional hardware costs.

It can be a good option if your business is just getting started or has simpler needs.

Features include:

• Basic POS: Process payments quickly, track sales and handle returns and exchanges
• Reporting: Access basic POS reports like daily sales and inventory tracking to help you make smart decisions
• Online ordering: Let customers place orders for pickup or delivery from your website or Square’s platform
• Inventory management: Track stock levels and get alerts when you’re running low on items

What comes with your plan:

• Square Restaurant POS software for 1 countertop device, $50/month for each additional
• Phone support available Monday to Friday, 6 a.m. -  6 p.m. PT

So, is Square free? Yes. But while it covers the essentials, it may not be enough if you need advanced features like loyalty programs or detailed reporting. If that sounds like you, I’d recommend looking into POS systems that offer these extra features to better meet your restaurant's needs.

Plus plan

The Square for Restaurants Plus plan pricing starts at $69 per location/month. 

It’s ideal for growing businesses with up to five locations and orders from multiple channels. 

You’ll get everything from the Free plan, along with:

• Advanced discounts: Offer more flexible discounting options
• Cash management: Track and manage cash transactions
• Ability to open checks: Allow customers to leave and return to open checks
• Ticket routing: Route kitchen orders for more efficient service
• Real-time order updates: Stay updated on the status of orders in real-time

What comes with your plan:

• Square Restaurant POS software for 1 countertop device, $50/month for each additional
• Square for Restaurants Mobile POS for $20 per month/device
• Unlimited Square KDS (Kitchen Display System) at no extra cost
• 24/7 phone support

The Plus plan is a great option if you want more features than the Free plan, without the higher costs of more advanced systems. It provides the tools you need to manage your restaurant efficiently and the flexibility to grow.

Premium plan

Starting at $165 per location/month, the Premium plan is designed for businesses with more than five locations. It includes key tools that established restaurants need for continued growth.

You’ll get everything from the Plus plan, along with:

• Online ordering: Additional online ordering features
• Shift and employee management: Streamline employee scheduling and shifts
• Payroll capabilities: Manage payroll seamlessly within the system

What comes with your plan:

• Square Restaurant POS software for 1 countertop device, $50/month for each additional
• Unlimited Square KDS (Kitchen Display System) at no extra cost
• Unlimited Square Mobile POS software at no extra cost
• Square Kiosk software at no extra cost
• 24/7 phone support

I recommend the Premium plan if you have a larger restaurant and need help with admin tasks like managing payroll and overall operational efficiency. 

Square rates for hardware

To make Square’s POS system work, you’ll need to invest in hardware.

Now, here's the thing—most of the hardware options will need a smartphone or tablet to run. The only exception is the Square Register, a full POS solution with everything built in.

So, while Square keeps its hardware costs pretty low, don’t forget to factor in the cost of your mobile devices, too.

A quick look at Square’s main hardware options and their costs:

You’ll want to make sure you’re selecting the right hardware for your restaurant’s needs. A basic countertop setup might be best with Square’s Register, while a tablet or Square Terminal works well for tableside ordering.

I’d also recommend factoring in the cost of tablets or smartphones. While Square Register works for smaller setups, tablets or smartphones offer more flexibility for tableside ordering or mobile payments, especially if you already have them.

If you're running multiple locations, don’t forget to plan for more devices. That’s where things can really add up, so it’s worth thinking ahead to keep your costs in check.

Square pricing for payment processing

When you're running your restaurant, payment processing is important to consider. Thankfully, Square POS pricing keeps it simple.

Here’s what you can expect to pay for different types of transactions:

In-person transactions

When a customer taps, dips or swipes their card in person, this rate applies to all major card brands, including Visa, Mastercard, Discover and American Express. 

• Cost: 2.6% + 15¢ per transaction

Online orders

For purchases made through your Online Store or eCommerce API, the fee is slightly higher than in-person transactions because of the nature of online payments.

• Cost: 2.9% + 30¢ per transaction

Manual card entry

If you’re manually entering a customer’s card details or using a card on file (such as when taking orders over the phone). This higher fee reflects the increased risk of fraud with manually entered transactions.

• Cost: 3.5% + 15¢ per transaction

Invoices

For customers paying invoices online, in person, or via mobile (using credit cards, Apple Pay, Google Pay, or ACH transfers), this payment method comes with a slightly higher fee due to its convenience.

• Cost: 3.3% + 30¢ per transaction

Custom pricing for high-volume businesses

Restaurants processing more than $250,000 annually will have fees based on factors like processing volume, average ticket size and your history as a Square seller.

• Cost: Varies

These fees are straightforward, but they can add up. I recommend keeping track of how you process payments to avoid unexpected costs, like higher fees for manual entries or online orders. This way, you can make sure the fees align with your restaurant’s needs.

Additional Square costs to consider

While Square offers a straightforward pricing model, there are a few additional costs you may want to consider when using their extended services. 

These services can provide valuable tools to enhance your operations, but come with their own set of fees:

Add-ons: Square Payroll, Marketing and Loyalty Programs

Square offers some powerful tools to help you run your restaurant, but these come with additional costs:

• Square Payroll: For employee wage processing and tax filing, you’ll pay $35/month + $5 per employee. Additional features, such as direct deposit, could add extra costs.

• Square Marketing: Starts at $15/month for up to 500 email contacts. A useful restaurant marketing tool to engage customers and drive sales.

• Square Loyalty: Start running rewards programs for $45/month. You can even customize the rewards to increase sales and keep customers coming back.

Chargebacks and dispute fees

One great benefit of using Square is that it covers the costs of handling chargeback disputes. This means you won't have to pay extra fees when you’re working with Square to contest a chargeback.

Third-party integrations

If you want to add more features to your POS system, you can use third-party apps. These apps can be helpful, but they come with additional fees. You can easily track and manage your app subscriptions through the Square App Marketplace.

Square POS: Is it the right fit? 

In the end, Square’s POS system is perfect for smaller operations that need an easy-to-use, cost-effective solution. But other systems might be a better match if your business demands more advanced features or scalability.

Square is great for in-person sales, but boosting online sales takes your business to the next level.

Owner.com is a good companion to Square for this reason. Schedule a demo today to explore the options and find the perfect fit for your business.