Square POS Pricing Guide and Hidden Costs in 2025

November 3, 2025

Table of contents

Good food brings customers in. Smart systems keep them coming back.


A point-of-sale (POS) system is the backbone of every restaurant; it’s where payments meet operations. From ringing up orders and managing menus to tracking sales and analyzing performance, a reliable POS system keeps your business running smoothly.

Among the many options available, Square POS has become a popular choice for restaurants looking for an easy setup and no monthly software fees. But while it’s known for simplicity, understanding the true cost of Square POS in 2025 takes more than just looking at the advertised rates.

So, how much does Square POS really cost? The answer depends on the type of business you run, your transaction volume, and the extra tools you use, from online ordering to delivery integrations.

In this guide, we’ll break down Square POS pricing, including hardware, software, transaction fees, and the hidden costs that often go unnoticed. 

TL;DR

  • POS systems often include hidden costs like transaction fees, setup charges, and platform commissions.
  • These expenses can eat into restaurant profits if not monitored closely.
  • iOrders offers a commission-free online ordering model, replacing variable fees with a single, predictable monthly cost.
  • Features like QR code ordering, delivery-as-a-service, and built-in loyalty programs add value without extra subscriptions.
  • With iOrders, restaurants can accurately track POS system costs and boost long-term profitability.

Are Point-of-Sale Systems Pricey? Understanding the Real Cost Behind the Setup

The cost of a point-of-sale (POS) system really depends on how your restaurant operates and the features you need. Some setups are completely free to start with, while others can get pricey depending on how advanced you go.

Here’s a quick comparison to help you see where your money actually goes:

Traditional POS Systems (Server-Based):

These are the old-school setups you often find in legacy restaurants. They’re reliable but come with a heavy price tag.

  • High upfront cost for hardware and software licenses
  • Additional setup and installation fees
  • Regular maintenance, server upgrades, and IT support are required
  • Limited integration with tools like online ordering or loyalty programs
  • Long-term costs add up quickly due to ongoing maintenance

Cloud-Based POS Systems (Like Square POS):

Modern restaurants prefer cloud-based systems because they’re easier to manage and more affordable.

  • No physical servers needed; everything runs online
  • Automatic software updates and data backups
  • Access your reports and orders from anywhere
  • Easy integration with third-party tools like delivery or marketing platforms
  • Flexible pricing options: start free or upgrade as you grow

A Look at Square POS Pricing:

  • Square POS Software: Free to start when using your existing iPad and card reader
  • Square Register: One-time hardware cost of $799 for an all-in-one countertop setup
  • Transaction Fees: Apply per sale, depending on payment type

So yes, a POS system can be expensive, but it doesn’t have to be. With cloud-based options like Square POS, restaurants can skip unnecessary hardware costs and still enjoy modern features, real-time data, and seamless integrations.

Also read: What is a POS System for Restaurants? Do You Really Need One?

POS System Cost Breakdown: What You Actually Pay For

A point-of-sale (POS) system is made up of three key components: software, hardware, and payment processing. Together, they determine how much you’ll pay overall. Knowing what each part includes can help you plan better and avoid hidden costs down the road.

Let’s break it down.

1. Software Costs

The software is the core of any POS system. It’s what lets you process sales, manage inventory, track customer data, and access reports. Square offers a flexible range of plans, from free tools for startups to advanced versions designed for busy restaurants and retail chains.

Square POS Free Plan

One of the most common questions is, “Is Square POS free?”

Yes, Square’s base software is free to use. It’s great for small setups such as pop-ups, food trucks, or cafes that need a simple payment solution.

Here’s what you get with the free plan:

  • No setup or monthly fees
  • A free Square card reader for iPhone or Android (excludes contactless readers)
  • Pay only when you take payments

However, since you’re charged processing fees per transaction, costs can rise as sales increase. For larger restaurants or stores with high volumes, a fixed monthly plan may be more cost-effective.

Processing Fees for Square Free Plan:

  • In-person: 2.6% + 10¢ per transaction
  • Online: 2.9% + 30¢ per transaction
  • Manually entered: 3.5% + 15¢ per transaction
  • Invoice: 3.3% + 30¢ per transaction

Square POS Paid Plans

For restaurants, retailers, and service-based businesses, Square offers advanced plans with extra features, analytics, and integrations.

Plan Monthly Price Processing Fees Key Benefits
Free $0 In-person: 2.6% + 10¢
Online: 2.9% + 30¢
Free card reader, no monthly fees
Restaurant Plus $60/location Same as above Real-time reports, advanced menu tools, 24/7 support
Restaurant Essentials Bundle From $153/month Same as above 6 software tools, advanced analytics, bundled savings
Retail Plus $89/month In-person: 2.5% + 10¢
Online: 2.9% + 30¢
Advanced inventory, barcoding, automated purchase orders
Retail Premium Custom pricing Custom rates Personalized onboarding, premium tools
Appointments Plus $29/month In-person: 2.5% + 10¢ Scheduling, staff management, inventory tracking
Appointments Premium $69/month In-person: 2.5% + 10¢ Full suite of advanced booking and team tools

Square for Restaurants

Designed specifically for dining operations, Square for Restaurants helps manage payments, menus, and online orders in one system.

Key Features:

  • Accept dine-in, takeout, and delivery orders seamlessly
  • Manage tables, menus, and staff efficiently
  • Access real-time sales data for faster decision-making
  • Use loyalty and marketing tools to retain customers
  • Access instant deposits with Square Banking

Pricing:

  • Free trial: 30 days
  • Plus Plan: $60/month per location
  • Additional device cost: $40/month (countertop) or $50/month (mobile)
  • Processing fees:
    • In-person: 2.6% + 10¢
    • Online: 2.9% + 30¢
    • Manually entered: 3.5% + 15¢
    • Invoice: 3.3% + 30¢

Square Restaurant Essentials Bundle

If you want an all-in-one restaurant management suite, this bundle saves you more by combining six powerful tools:

  • Square for Restaurants Plus
  • Square Online Premium
  • Square Shifts Plus
  • Square Team Plus
  • Square Payroll
  • Square Team Communication

Pricing: Starts from $153/month

Processing fees:

  • In-person: 2.6% + 10¢
  • Online: 2.9% + 30¢
  • Manually entered: 3.5% + 15¢
  • Invoice: 3.3% + 30¢

This plan is ideal for restaurants that want to automate more and simplify multi-location management.

Must read: How to Start and Run a Successful Restaurant in 10 Simple Steps

Square for Retail

Square’s Retail POS plan is designed for stores managing multiple product lines and locations. It combines sales, inventory, and customer management in one place.

Key Features:

  • Sell in-store or online with synced inventory
  • Generate detailed sales and profit reports
  • Automate purchase orders and vendor management
  • Print barcode labels and track employee time
  • Use Afterpay for flexible customer payments

Pricing:

  • Retail Plus: $89/month per location
  • Retail Premium: Custom pricing
  • Processing fees:
    • In-person: 2.5% + 10¢
    • Online: 2.9% + 30¢
    • Manually entered: 3.5% + 15¢
    • Afterpay: 6% + 30¢

Square Appointments

For service-based businesses such as salons or repair shops, Square Appointments POS offers scheduling, payment, and client management tools in one system.

Key Features:

  • Easy online and app-based booking
  • Secure, transparent payments
  • Client profiles and direct communication
  • Team management tools (permissions, wages, commissions)
  • Retail add-ons for selling products alongside services

Pricing:

  • Plus Plan: $29/month per location
  • Premium Plan: $69/month per location
  • Processing fees: 2.5% + 10¢ (in person)

The true cost of Square POS depends on your business type, sales volume, and how many features you need. Smaller restaurants and pop-ups might start with the free plan, while larger or multi-location operations will benefit more from paid bundles that centralize reporting, marketing, and team management.

2. Square POS Hardware Pricing

While Square’s software is free to use, running your in-person restaurant operations often requires reliable hardware. That’s where Square’s POS devices come in, designed to simplify payments, speed up service, and create a seamless checkout experience.

From compact readers to full countertop setups, Square offers a variety of hardware options depending on your restaurant’s size and workflow. Let’s break down each one and its pricing.

Square Register, The All-in-One POS Solution

Square Register is Square’s flagship product and the first fully integrated POS system built for immediate use. It doesn’t need any external tablet or app; everything’s included in one powerful device.

Why restaurants love it:

  • Dual display, one for the cashier and one for the customer
  • Fast, intuitive interface for quick transactions
  • Minimal setup, ideal for busy restaurants or cafes

Pricing details:

  • Hardware cost: $799 (one-time) or $39/month for 12 months
  • Transaction fees:
    • 2.6% + 10¢ per in-person tap, dip, or swipe
    • 6% + 30¢ per Afterpay transaction

Square Terminal: Portable and Cordless Convenience

Square Terminal is perfect for restaurants that want flexibility at the counter or tableside. It’s compact, wireless, and includes built-in POS software, so you can take payments, print receipts, and manage orders all from one device.

Ideal for: quick-service restaurants, food trucks, and pop-up setups.

Pricing details:

  • Hardware cost: $299 (one-time) or $27/month for 12 months
  • Transaction fees:
    • 2.6% + 10¢ per in-person payment
    • 6% + 30¢ per Afterpay transaction

Square Stand: Turn Your iPad into a POS System

Square Stand transforms your iPad into a complete point-of-sale system. It’s sleek, sturdy, and features built-in card readers with LED payment indicators that guide customers through checkout.

Why it’s a smart choice:

  • No external card reader needed
  • Great for counter-service or mid-sized restaurants
  • Supports tap, dip, and swipe transactions

Pricing details:

  • Hardware cost: $149 (one-time) or $14/month for 12 months
  • Transaction fees:
    • 2.6% + 10¢ per in-person payment
    • 6% + 30¢ per Afterpay transaction

Square Stand Mount, Designed for Any Space

The Square Stand Mount offers the same power as the Square Stand but with added flexibility. It can be mounted on walls, kiosks, or counters, perfect for limited spaces or self-ordering setups.

Why it stands out:

  • All mounting hardware included
  • Clean, professional setup for modern restaurants
  • No extra service visits required

Pricing details:

  • Hardware cost: $149 (one-time) or $14/month for 12 months
  • Transaction fees:
    • 2.6% + 10¢ per in-person payment
    • 6% + 30¢ per Afterpay transaction

Square Reader: Compact and Cost-Effective

If you’re just starting out or need something simple for mobile use, the Square Reader is a great pick. It’s lightweight, easy to carry, and connects to your smartphone or tablet for quick transactions.

Options available:

  • Square Reader for Contactless and Chip: Accepts chip cards and contactless payments
  • Square Reader for Magstripe: Allows credit card swipes via mobile devices

Pricing details:

  • First reader: Free at sign-up
  • Additional readers: $10 each
  • Transaction fees: 2.6% + 10¢ per swipe

Square’s hardware lineup is built to suit different business needs, from quick-service counters to full-service restaurants. The best part? You can mix and match these devices as your business scales, keeping operations smooth and professional without breaking your budget.

3. POS Payment Processing Costs

Beyond software and hardware, payment processing fees are one of the most important, and often overlooked, costs of a POS system. These are the small charges applied every time a customer pays using a credit card, debit card, or digital wallet. While the amount per transaction may seem minor, it can make a big difference to your profit margins over time, especially for high-volume restaurants or retail businesses.

Here’s a look at what these fees typically include:

Average Transaction Fees

Based on common industry standards, here’s what you can expect to pay:

  • 2.5%–2.7% per transaction for in-person payments (swipes, dips, or taps).
  • 2.9%–3.5% per transaction for manually entered or online payments.
  • $0.10–$0.30 fixed fee per transaction (in addition to the percentage fee).

These rates can fluctuate depending on:

  • Your POS provider and plan.
  • The type of card used (credit vs debit).
  • How the transaction is processed (in-store vs. online).

Hidden or Additional Charges

Some payment processors add costs that aren’t obvious at first glance, such as:

  • Monthly account fees for maintaining your merchant account.
  • PCI compliance or security fees to meet data protection standards.
  • Minimum transaction volume requirements that could trigger penalties if not met.

Tip: Always review your contract details; even small add-on fees can quietly erode your profits over time.

Why Many Businesses Prefer Integrated Payments

To simplify operations, many restaurants and small businesses opt for all-in-one POS systems that include built-in payment processing.

For instance, Square POS offers:

  • No monthly fees or long-term contracts.
  • Flat-rate, transparent pricing with no hidden charges.
  • Instant integration with your POS dashboard for easy reconciliation.

This kind of setup means fewer vendors to manage and a clearer understanding of your overall costs, something especially valuable for new or growing businesses.

Payment processing is more than just a fee; it’s a key part of your pricing and profitability strategy. Choosing a provider that’s upfront about rates helps you forecast costs accurately, set fair prices, and retain more from every sale.

Square POS Added Costs and Extras

While Square POS is free to start, some optional add-ons can enhance how you run and grow your business. These tools come with separate monthly fees, but they can pay off in smoother operations, happier employees, and loyal customers.

Here’s a quick look at the most popular Square extras:

  • Square Marketing  From $15/month

Create, send, and track professional email marketing campaigns directly from your POS dashboard.

  • Employee Management  $5 per employee/month

Manage teams easily with time tracking, role-based access, and performance insights ideal for growing businesses.

  • Square Payroll  $29/month + $5 per employee

Automate payroll with built-in tax compliance and timecard syncing for accurate, stress-free pay runs.

  • Square Loyalty From $25/month

Launch your own loyalty program with digital punch cards, custom rewards, and repeat customer incentives.

  • Gift Cards  80¢ per physical card or 2.9% + 30¢ per digital sale

Sell branded gift cards in-store or online to boost sales and customer engagement.

These add-ons let you scale your POS system as your business grows, paying only for the features you truly need.

Pricing Factors to Consider

When figuring out the true cost of a POS system, the sticker price rarely tells the full story. Beyond software, hardware, and payment fees, your actual investment depends on how your business operates, the features you need, and how fast you plan to grow.

Here are the key pricing factors every business should keep in mind before choosing a POS system:

Number of Locations

If you operate multiple stores, you’ll need a POS platform that supports multi-location management.

  • Some providers charge a per-location fee, while others offer bundled pricing for multiple outlets.
  • Check if your POS allows data syncing across stores, so inventory, sales, and employee tracking all stay connected.
  • Access to centralized reporting tools will help you analyze performance and profitability across locations in real time.

Business Type and Complexity

Your industry and workflow can significantly influence what you’ll pay.

  • A retail store may only need barcode scanning, basic inventory tracking, and a receipt printer.
  • Meanwhile, a restaurant or café might require kitchen printers, menu management, and tableside ordering, all of which add to setup costs.
  • The more complex your operations, the more likely you’ll need specialized hardware or upgraded plans.

Add-ons and Integrations

What looks like a low-cost setup can easily add up with extras.

  • Tools like loyalty programs, accounting integrations, or online ordering often come with separate monthly fees.
  • While add-ons can improve efficiency and customer experience, make sure to choose only what you’ll actually use.

Scalability

Think long-term, not just about what you need now, but what you’ll need six months or a year from today.

  • If you’re planning to expand locations, add new employees, or launch online sales, your POS should scale without steep pricing jumps.
  • Choosing a system with flexible plans and transparent upgrade options can save you the cost and hassle of switching later.

When comparing POS systems, create a cost projection that includes setup, transaction fees, and potential add-ons. The right system should balance affordability with growth, fitting your needs today and tomorrow without any hidden surprises.

Cut Down POS Expenses with iOrders

Managing a restaurant means keeping a close eye on every expense, and your POS system shouldn’t eat into your profits. Hidden commissions and unpredictable fees from third-party platforms can quickly add up, making it harder to maintain healthy margins. That’s where iOrders helps you take back control.

With iOrders’ commission-free model, you pay a fixed monthly rate instead of a percentage on every order. No inflated delivery costs, no confusing add-ons, just simple, transparent pricing that keeps your revenue where it belongs: in your business.

Here’s how iOrders helps restaurants save more while managing operations efficiently:

  • Commission-Free Ordering

Stop losing 15–30% of each sale to third-party apps. With iOrders, you manage takeout and delivery orders directly through your own branded channels, at one predictable monthly fee.

  • Branded Website & QR Code Ordering

Let customers order straight from your website or by scanning a table QR code. iOrders connects every order directly to your POS, eliminating middlemen and platform charges.

  • Delivery-as-a-Service

Avoid costly third-party courier integrations. iOrders handles driver coordination and dispatch, ensuring smooth, commission-free delivery every time.

  • Loyalty & Rewards Programs

Keep customers coming back with built-in loyalty features. Create points, tiers, and rewards without paying extra for separate software.

  • 24/7 Local Support

Get reliable Canada-based assistance whenever you need it, no extra service charges, no long waits.

By simplifying operations and removing hidden costs, iOrders helps you establish a clear, fixed POS cost from day one. The result? A smarter, more affordable way to run your restaurant and grow your profits sustainably.

Conclusion

In a competitive restaurant landscape, profitability often depends on how well you manage technology costs. Many business owners underestimate how quickly third-party commissions, add-ons, and payment fees can cut into margins, but iOrders makes that challenge simpler.

With commission-free online ordering, custom branding, integrated delivery, and built-in loyalty programs, iOrders empowers restaurants to streamline operations without surprise costs. You pay one transparent monthly fee, no hidden percentages, and no confusing fine print. Plus, their 24/7 Canada-based support ensures that when you need help, it’s always just a call away.

By reducing recurring platform expenses and keeping every transaction under your control, iOrders helps restaurants move from cost-heavy systems to sustainable, scalable growth.

If you’re ready to eliminate hidden POS expenses and take full ownership of your online ordering, iOrders is your ideal partner for 2025 and beyond. Book your free demo today with iOrders

FAQs

1. Is iOrders a POS system?

iOrders isn’t a traditional POS system — it’s a smart ordering and engagement platform that integrates directly with your POS, allowing restaurants to manage online orders, deliveries, and loyalty programs commission-free.

2. How does iOrders help reduce POS costs?

With a flat monthly fee and no per-order commissions, iOrders eliminates the 15–30% third-party charges most platforms take. It also includes built-in marketing, delivery, and loyalty tools, so you don’t have to pay for separate add-ons.

3. Can I use iOrders with my existing POS setup?

Yes. iOrders integrates smoothly with most modern POS systems, making it easy to manage online and in-person orders in one place without disrupting your current operations.

4. What type of restaurants benefit most from iOrders?

iOrders is ideal for independent restaurants, QSRs, and ghost kitchens looking to grow revenue while keeping costs predictable and commissions low.

5. Does iOrders offer customer support?

Absolutely. iOrders provides 24/7 Canada-based support, ensuring your restaurant always runs smoothly, from setup to order management.

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