- Best Square alternative for working with a preferred payment processor: Clover
- Best Square alternative for e-commerce businesses: Shopify
- Best Square competitor for low-cost payment processing: Helcim
- Best Square alternative for online payment processing: Stripe
- Best Square alternative for inventory management: Lightspeed
- Best Square competitor for full-service restaurants: Toast
- Best Square alternative for high-risk businesses: PaymentCloud
Square is one of the most popular point-of-sale (POS) systems on the market because of its forever-free subscription plan that lets merchants start selling and accepting payments easily. However, there are instances when businesses might outgrow Square’s services or find it lacking.
Top Square competitors compared
The top Square competitors typically offer free POS software solutions and competitive transaction fees. Below, you can compare my top picks for Square alternatives based on pricing, transaction fees, POS plan inclusion, and hardware costs.
| Starting price (monthly fee) | Transaction fee | Free POS plan | Hardware starting price | |
|---|---|---|---|---|
| Clover | $14.95 | Varies | No | $199 (card reader) |
| Shopify | $39* | 2.4%–2.9% + $0.30 | Yes | $49 (card reader) |
| Stripe | $0 | 2.9% + $0.30 | Yes | $59 (card reader) |
| Lightspeed | $89 | 2.6% + $0.30 | No | Undisclosed |
| Helcim | $0 | Interchange plus 0.15%-0.50% and $0.15-$0.25 | Yes | $99 (PIN-enabled card reader) |
| Toast | $0 | 2.49%–2.99% + $0.15 | Yes | $0 with certain plans |
| PaymentCloud | $10 | 2%–4.3% | No | Custom |
| *Shopify e-commerce or POS subscription required. | ||||
Clover: Best Square alternative for working with a preferred payment processor
Clover is a POS provider known for its top-of-the-line proprietary hardware, including mobile card readers, terminals, and countertop registers. Like Square, Clover offers solutions to businesses of all sizes and across most industries. But unlike Square, Clover can work with any processor on the Fiserv network, which lets businesses shop for their preferred payment processor.
Why I chose Clover
The ability to work with other payment processors is Clover’s biggest advantage over Square. This allows merchants to shop around for the lowest rates and work with a provider that suits their needs, unlike Square, which locks you in with their native payment processor.
Clover also offers a wide range of proprietary hardware, from mobile card readers to full countertop terminals, kitchen displays, and even kiosks. It is also worth noting Clover’s strong offline functionality, which allows merchants to process card payments for up to seven days. Square only lets you process payments offline for 24 hours, after which you need to sync payments online.
That being said, Clover’s hardware is sold through resellers, so pricing greatly varies. However, given that you can choose your preferred provider, doing a thorough research will help lower costs.
Pricing
Since businesses can purchase pre-programmed Clover hardware and software from their preferred payment processor, pricing greatly varies.
Below are fees based on Fiserv terms and rates:
- Monthly fee: $14.95 to $69.90.
- Transaction fees: 2.3%–2.6% + 10 cents to 3.5% + $0.10.
- Hardware cost based on Clover website:
- $199 for Clover Go (mobile card reader)
- $279 for Clover Compact (countertop terminal)
- $1,799 for Clover Station Duo (full POS with cash register and receipt printer)
Features
- Credit card preauthorization.
- Offline payment processing for up to seven days.
- Customer profiles based on purchases.
- Proprietary hardware variety for all types of businesses.
Pros and cons
| Pros | Cons |
|---|---|
| Works with other payment processors. | Hardware cannot be reprogrammed; it is tied to the payment provider. |
| Strong offline mode. | Pricing depends on the payment processor. |
| Easy-to-use proprietary hardware. | Expensive hardware. |
Shopify: Best Square alternative for e-commerce businesses
Shopify is a top-rated and widely popular e-commerce platform for real-world users and experts alike. Launched in 2006, it added a POS system in 2013 to let merchants easily sell in-person and online.
Shopify is an excellent choice for multichannel sales as it has strong omnichannel features — an easy-to-use, top-notch website builder, robust e-commerce and marketing features, and POS hardware for in-person selling. All of these tools are readily available from the merchant dashboard and seamlessly integrate with each other.
Why I chose Shopify
Shopify and Square are known for their multichannel selling features for online and in-person sales. However, as previously mentioned, Shopify was built first as an e-commerce platform, and it shows. Shopify beat Square in almost every e-commerce feature during my evaluation, with its customizable website builder, built-in marketing tools, and advanced inventory management.
Shopify also has the edge over Square because it allows its merchants to use their preferred payment processor, unlike Square, which locks you in with its built-in payment provider. Do note, though, that this entails an added fee. Businesses that primarily sell online and are looking to expand into in-person sales will find Shopify to be an excellent Square alternative.
Pricing
- $0 for Shopify POS Lite; included in e-commerce subscription plans ($39-$399).
- $89 per location for Shopify POS Pro.
- $49 for card reader, $349 for POS Terminal, $459-$999 for countertop kits.
- Transaction fees:
- 2.4% + 30 cents to 2.9% + 30 cents for online transactions.
- 2.4% to 2.7% for in-person transactions.
- Additional 0.5 to 2% if using a third-party payment provider. Only available for online sales.
Features
- Complete online store builder with robust inventory and marketing tools.
- Strong omnichannel sales — native multichannel and social media selling integrations.
- Extensive third-party integrations.
- Mobile app and checkout via the Shopify POS mobile app.
- Return, refund, and exchange processing.
- Customer and staff management.
- Other payments accepted — QR, checks, buy now pay later (BNPL).
- Detailed reports and analytics — cash flow, sales reports (customizable by staff, location, and date), tax, discount reports, product and product categories.
Pros and cons
| Pros | Cons |
|---|---|
| Native robust e-commerce platform. | Limited offline functionality (no credit card transactions). |
| Smart omnichannel sales tools. | Added transaction fees for third-party payment processors. |
| Excellent 24/7 customer support. | E-commerce or POS subscription required. |
Helcim: Best Square competitor for low-cost payment processing
Helcim is a merchant service provider and payment processor that offers a full suite of free tools. However, it is best known for its interchange-plus pricing structure and automated volume discounts, which allow businesses to save significantly on processing fees.
Helcim also has strong B2B payment features. Aside from cost-savings on high volume sales, it has built-in level 2 and 3 data processing and support for common B2B payments such as virtual terminal, invoicing, and recurring billing — all for free. Helcim is my top pick among the top B2B payment processors.
Why I chose Helcim
Square compares to Helcim equally in terms of free plans and long-term contracts; both providers offer free plans and no long-term contracts. But that’s where the equal comparison ends.
Square offers straightforward flat-rate pricing for transaction fees, which works great for transparency. But if your business is steadily growing and transacting a high sales volume, Helcim’s volume-based interchange-plus pricing provides the cheapest payment processing option.
Helcim also provides excellent B2B payment features, as previously mentioned, and handles multi-currency and cross-border payments, which Square doesn’t have. Helcim also has a Fee Saver feature activated in its Smart Terminals, allowing merchants to pass on processing fees to customers and save more on fees.
Pricing
- Monthly fee: $0.
- Payment gateway fee: $0.
- Payment processing fees:
- Interchange plus 0.15-0.4% and 6-8 cents per card-present transactions.
- Interchange plus 0.15%-0.50% and 15-25 cents per card-not-present transaction.
- Plus 0.10% + 10 cents for American Express (AmEx) transactions.
- Hardware cost: $99 for mobile card reader, $329 for POS with receipt printer.
Features
- Interchange-plus pricing with automated volume discounts.
- Free mobile payment app and POS.
- A zero-cost processing program that automatically detects the free credit card processing program available to use based on the card type/network and business location.
- Built-in Level 2 and 3 data processing and support for common B2B payments – virtual terminal, invoicing, recurring billing.
- Customer self-service portal.
- Guided chargeback dispute resolution.
- Save credit cards on file.
- Fraud Defender – risk estimation per transaction for fraud and chargeback reduction.
Pros and cons
| Pros | Cons |
|---|---|
| Automatic volume discount. | Limited integrations. |
| Free access to all payment tools. | Strict approval process for merchant accounts. |
| Built-in compliant surcharging and Level 2 and 3 data optimization. | Slow deposit speed; no instant payouts. |
Stripe: Best Square alternative for online payment processing
Stripe is a top online payment processing platform, leading the pack in e-commerce payment solutions, the best payment gateways, and top international merchant services. It has a full stack of API and developer tools for full checkout customization and supports multiple currencies and various payment methods.
Stripe started out in 2011 as an online payment platform only, but with the launch of Stripe Terminal in 2018 to support in-person payments, Stripe has become a mighty Square competitor for online payment processing for businesses of all sizes.
Why I chose Stripe
Both Square and Stripe provide API tools, but Stripe provides a full stack specifically designed for extensive customization. Stripe also has better tools for online payment processing, particularly for fraud management and payment tools. It is a good Square alternative if you accept online payments in different formats, such as checkout pages, invoicing, and payment links.
Stripe lags behind Square in terms of plug-and-play payment and POS apps, but with the introduction of Stripe Terminal (POS) and Stripe Dashboard (mobile app), Stripe’s in-person selling features have gotten stronger. Still, if you accept online payments more than in person, Stripe is the best Square alternative.
For more information, read the full Stripe review.
Pricing
- Monthly fee: $0.
- Payment gateway fee: $0.
- E-commerce transaction fee: 2.9% + 30 cents.
- In-person transaction fee: 2.7% + 5 cents.
Features
- Customizable checkout process.
- Customizable risk management and fraud detection tools.
- Multi-currency payment processing with real-time native currency display and transaction.
- Customer support — 24/7 chat, email, and phone.
Pros and cons
| Pros | Cons |
|---|---|
| Powerful, well-documented APIs. | Complex installation process. |
| Extensive integrations. | Fewer in-person payment features. |
| Top-notch security and anti-fraud tools. | Coding skills required for customization. |
Lightspeed: Best Square alternative for inventory management
Lightspeed is a cloud-based POS solution servicing retail businesses with integrated payments, a native e-commerce platform, robust register features, and advanced inventory management tools. Lightspeed primarily stands out for granular inventory controls and top-notch analytics platforms.
Why I chose Lightspeed
Lightspeed is the best Square alternative for businesses that can easily track inventory at the ingredient level; it provides customizable matrices, omnichannel ordering, and serial number tracking. This feature makes it great for jewelry shops, sporting goods stores, bike shops, golf courses, and more.
Both Square and Lightspeed provide in-house payment processing with a flat-rate structure, but Lightspeed has third-party payment provider integrations available. Both also have native e-commerce website platforms and industry-specific POS systems, but Lightspeed’s is more advanced.
Lightspeed’s price point might be a deal breaker for small businesses or those on a budget. But, for businesses that have outgrown Square’s inventory tools or need advanced reporting and analytics, Lightspeed is the best Square alternative.
Pricing
- Software fees: $109–$289 (monthly), $89–$239 (annual).
- Transaction fees (Lightspeed Payments): 2.6% + 10 cents per transaction for in-person online payments; 2.6% + 30 cents per transaction for online transactions.
- Hardware costs are custom-quoted.
Features
- Advanced inventory management features — customizable matrix inventory, built-in vendor management, automated return management, purchase ordering inventory import, edit, and low-stock alert tools.
- More than 3,000 preloaded vendor catalogs (integrated supplier network catalog).
- Native ecommerce platform (Lightspeed Ecommerce).
- 24/7 customer support with a dedicated account manager.
Pros and cons
| Pros | Cons |
|---|---|
| Granular matrix inventory features. | Expensive subscription plans. |
| Built-in ecommerce platform. | Limited offline functionality. |
| Third-party payment provider integrations available. | User interface has a learning curve. |
Toast: Best Square competitor for full-service restaurants
Toast is an all-in-one business solution specifically designed for restaurants, making it the best Square alternative for those in the food and beverage industry. While Square has a restaurant POS, Toast provides a more robust suite of restaurant management features, built-in add-on programs, and industry-grade proprietary hardware made to withstand the busy and high-heat environment of restaurant kitchens.
Why I chose Toast
As a Square competitor, Toast comes head-to-head with some of Square’s offerings. Both provide free starter POS software and proprietary hardware. Square offers the first magstripe reader for users for free; however, Toast includes a full free hardware starter kit when you sign up for a subscription.
Like Square, Toast locks you in with its payment provider, Toast Payments, which has higher fees than Square Payments. However, Toast’s restaurant features cannot be beaten, so restaurant businesses should use this Square alternative.
Pricing
Toast has a pay-as-you-go pricing model, which means you can add features available at an extra monthly cost. Toast, like Square, has an exclusive payment processor (Toast Payments) with a two-year commitment.
- Monthly fees: $0–$69; custom quotes available.
- Transaction fees: From 2.49% to 2.99% + $0.15 for in-person payments; custom rates available upon request.
- Add-on features (digital ordering, gift cards, email marketing, etc.): Starts at $50 per month.
- Hardware: Plan inclusion and customizable.
Features
- Free baseline POS system with pay-as-you-go hardware.
- Kitchen display system.
- Advanced inventory management and recipe costing.
- Online ordering and delivery tools.
- In-depth customer information and in-house dining tools.
Pros and cons
| Pros | Cons |
|---|---|
| Free hardware with a pay-as-you-go plan. | Contract commitment (two years). |
| Free starter POS software. | Locked into Toast Payments (native payment processor). |
| Restaurant-specific payroll, HR, online ordering, and invoicing tools. | Marketing tools (email, loyalty, gift cards) cost extra per feature. |
PaymentCloud: Best Square alternative for high-risk businesses
PaymentCloud is a merchant account provider specializing in servicing those in the mid to high-risk industries. Unlike Square, which only has a program for CBD merchants, PaymentCloud can accommodate businesses operating in a wide variety of industries and circumstances. In fact, it boasts a 98% approval rate and same-day setup upon approval.
Why I chose PaymentCloud
While Square supports CBD industries, PaymentCloud has a wider reach and is more versatile. In fact, it is my top pick among the best high-risk merchant account providers. Both providers have tools for in-person and online sales, but PaymentCloud offers a same-day set-up for e-commerce.
PaymentCloud doesn’t disclose its pricing and has a longer application process, but this is to be expected for a high-risk application. There are no application or setup fees when signing up for an account but expect a longer application process. Again, PaymentCloud has a 98% approval rate for high-risk merchants, so if you or your business are considered high-risk, PaymentCloud is your best Square alternative.
Pricing
PaymentCloud only provides custom pricing; merchants are advised to call for more information. PaymentCloud does not have application, setup, and annual fees.
The rates below are estimates provided by the provider.
- Monthly fee: $10-$45.
- Payment processing fees:
- 2%-3.1% for low-risk transactions.
- 2.3%-3.4% for medium-risk transactions.
- 2.7%-4.3% for high-risk transactions.
- Payment gateway fee: $15/month.
Hardware kits are available through third-party providers (Clover, Dejavoo, PAX, and more).
Features
- High-risk merchant support (see full list of PaymentCloud’s compatible industries).
- Brick-and-mortar and ecommerce terminals available through third-party partners.
- Payment versatility — credit cards, ACH, checks, digital wallets, QR codes, or cryptocurrency such as Bitcoin.
- Works with all payment gateways.
- Compliant credit card surcharging.
- Fraud and chargeback protection.
- Dedicated and hands-on onboarding support.
Pros and cons
| Pros | Cons |
|---|---|
| Good customer reviews. | Payment gateway charges. |
| Same day setup upon approval. | Longer application and approval process. |
| High approval rate for high-risk merchants (98%). | Undisclosed pricing. |
Do you need an alternative to Square?
Square is a highly-rated all-in-one business solution for businesses of all sizes. It is the best POS system for small businesses, leads our recommendations for best mobile credit card processing, best retail POS systems, and best cloud POS systems.
However, Square pros and cons need to be considered together with business needs. And there are times when Square is not the best fit for your business. Here are some instances where Square might be lacking and where you may want to consider alternatives.
- Your business belongs to mid- to high-risk industries: Square does not work with high-risk merchants or certain product industries. It does have a CBD program, but this entails higher processing fees.
- Your business has high-volume sales or a complex inventory: Square’s flat processing fee structure is not cost-efficient for businesses that experience high-volume sales. Square’s inventory system is rudimentary and those with extensive catalogs might find this limiting.
- You want account stability and the freedom to choose your payment processor: Square’s is an aggregate merchant account, so reports of frozen accounts and user holds happen, although widespread outages are rare. Businesses that do not want to take this risk should go with a traditional merchant account provider. In a similar vein, businesses that want to have the flexibility in choosing their processor are better off not going with Square as it is exclusive using its native payment processor.
- You need customization: Square’s biggest attraction to most businesses is its ease of use and out-of-the-box payment solution. This can also be the dealbreaker for some that want tailored solutions.
Methodology
I evaluated top Square competitors by first scoring their tools against a specific criteria — pricing (20%), software features (30%), hardware (20%), installation and security (20%), and user reviews (10%). I also factored in my own experience using the software from the backend and as a customer.
Next, I looked at specific features these providers offer that Square doesn’t, or functionalities the system does better than Square. From here, I was able to come up with my top Square alternatives and made recommendations on what types of businesses these platforms are best for based on a specific need for a functionality Square lacks.
Frequently Asked Questions
What is Square’s competitive advantage?
Square’s ecosystem of business solutions (POS, payment hardware, online payments, and ecommerce builder) is its main advantage. And unlike most payment processors, Square offers free plans but has scalable options, too, depending on business needs.
Which large companies use Square?
According to Square, more than four million sellers run on their platforms, with companies like Shake Shack, H Mart, and SoFi Stadium as its clients. Companies like Square because of its suite of business solutions, making it a one-stop shop for solopreneurs, retail, and service-based businesses.
How can I reduce credit card processing fees?
To reduce credit card processing fees, you can negotiate with your provider or shop around for better rates. There are processors that offer volume discounts or implement an interchange plus pricing structure that’s more cost-effective in the long run. You can also pass on the fees to your customers (also known as credit surcharging).
What does a credit card processor do?
A credit card processor transmits payment information from a merchant’s payment gateway (POS or checkout page) to card networks so that they can ask the payee’s bank to approve the transaction. Upon approval or rejection, it then sends the decision back to the merchant and transmits the information to the merchant’s bank.
This article was reviewed by retail and payments expert Meaghan Brophy.
