Toast vs. Square: Differences, pros and cons in 2024

Both leaders in the payment processing industry, Toast and Square are two viable options to consider when choosing a point-of-sale (POS) system. These companies provide businesses with a comprehensive solution for completing transactions as well as tracking sales data and managing inventory. 

Overall, Square comes out on top when comparing the two. However, when it comes to hardware features and customer service, Toast offers better options than Square. Toast is the best for those who have small to medium-sized eateries. Square is best for businesses that want a straightforward solution that is also affordable.

Here’s a comparison of Toast and Square to show what sets them apart in regard to pricing, equipment and customer experience.

Toast vs. Square: Quick overview

Toast and Square are cloud-based POS systems that offer a full suite of hardware and software to help businesses run their operations from anywhere. With either company, basic plans are available for no upfront equipment cost or monthly fee. 

However, Toast POS is only built for the food service industry. Systems are intended to meet the unique needs of startup and established restaurants of all varieties. Product packages may be fully customized with an assortment of add-on features, and there’s one customer support team to assist with POS and payment processing inquiries.

Square POS can be used in a wide array of industries, but it has systems specially geared toward retail stores, restaurants and businesses that operate on a scheduled appointment basis. Several features are included at no extra charge. There are also no long-term contract requirements when signing up for Square POS.  

Pricing and fees

Verdict: Square

When it comes to pricing and fees, Square might be the better option. Not only do you get the first card reader for free, but there are no chargeback fees. Toast doesn’t offer free hardware and has a $15 chargeback fee. 

Toast pricing and fees

Toast’s POS plans can accommodate food businesses of all sizes, including a completely customizable option. Ideal for smaller eateries, the Starter Kit begins at $0 per month and comes with basic POS software and one hardware device. The Point of Sale option has additional software and hardware options and starts at $69 per month.

Toast gives businesses the choice between a standard pricing plan or a pay-as-you-go model. With the standard arrangement, all hardware is paid for upfront and a monthly software fee applies. Each in-person transaction will incur a processing fee of 2.49% plus $0.15 as well. The pay-as-you-go plan covers hardware costs and charges a 2.99% plus $0.15 processing fee. Both options require a two-year contract.

Square pricing and fees

Square also gives businesses the opportunity to get set up with a POS system for free. More software features are supported at the base level, and different versions are offered for retail, restaurant and appointment-based operations. Square’s paid plans range from $29 to $153 per month, depending on the industry selected. These plans include advanced features. 

Other than the free initial card reader, Square’s hardware must be purchased separately, which can add up to a significant amount. However, long-term contracts aren’t required, and there are no chargeback fees. Additionally, the company provides flat-rate payment processing fees as follows: 

• 2.6% plus $0.10 for in-person charges.
• 2.9% plus $0.30 for online transactions.
• 3.5% plus $0.15 for manually keyed-in payments.

Hardware features

Verdict: Toast

Toast and Square both carry a full line of hardware products designed to work with their respective POS systems. However, Toast offers robust industry-grade devices built to hold up in harsh restaurant conditions, whereas Square allows for greater flexibility when it comes to using existing equipment.

Toast hardware features

Toast aims to provide stylish products that restaurants can easily incorporate into their decór. These hardware options may be purchased either separately or in a bundle:

• Toast Go 2: The Toast Go 2 is a handheld portable device made to take chip, swipe or contactless payments anywhere inside or outside the restaurant. 
• Toast Flex: The main component in Toast’s POS setup, the Toast Flex is an adjustable touchscreen terminal that accepts all forms of payment. 
• Toast Flex for Guest: Created to boost order accuracy and transparency with customers, this model of the Flex system gives guests the ability to see exactly what they’re being charged for during the payment process. 
• Toast Flex for Kitchen: Also referred to as the Kitchen Display System (KDS), this terminal connects the kitchen staff with those taking customer orders so meals can start being prepared right away. 
• Kiosk: These self-ordering terminals enable guests to place orders and make payments without staff interaction. 

Square hardware features

Square offers various hardware products but also relies on iOS devices or Android tablets to run its POS system. The company has both handheld and stationary terminals as well as several accessories for businesses to choose from. These include: 

• Magstripe Square reader: This compact credit card reader plugs into smartphones and tablets and works with the Square POS app so payments can be taken from any location.
• Contactless and chip Square reader: These card readers share a wireless connection with iOS or Android devices and can be used on-site or on-the-go to process transactions. 
• Square mount: Featuring built-in card readers, Square’s two mount models are made to create an iPad POS and can be placed on the wall or countertop. 
• Square terminal: This all-in-one portable POS system eliminates the need for a personal device and is able to accept payments anywhere.
• Square register: Built with two display screens, one for business staff to perform transactions and the other to give customers visibility, the Square register is a fully integrated POS system that can handle multiple functions.

Software features

Verdict: Square

Since Toast’s POS software is designed exclusively for the food service industry, it has many specialized features to help restaurants thrive. That said, Square has its own software tailored to restaurants and also serves a wider range of businesses. Both systems integrate with a number of third-party apps to increase functionality as well.

Toast software features

As a cloud-based system, Toast POS allows restaurant owners to access their business data remotely. The company’s software can also help streamline restaurant operations with solutions like:

• Table management.
• Reporting and analytics.
• Online ordering.
• Menu management. 

Add-on features, such as inventory management, employee scheduling and gift card management, are available for an extra fee.

Square software features

Square’s software capabilities extend to businesses of all varieties. The company’s POS system automatically comes with a long list of tools that merchants can use to run their daily operations more efficiently, including:

• In-app sales reports.
• Customer directory.
• Inventory tracking.

Square has numerous add-on features as well, including marketing, team management and payroll. Aside from restaurants, it also offers specific software solutions for retail and businesses that operate on a scheduled appointment basis.

Customer service

Verdict: Toast

Toast and Square are both dedicated to customer service and provide multiple avenues to reach out for assistance. However, Toast edges out in front by giving customers 24/7 access to support. 

Toast customer service

Toast’s customer care team can be reached any time of day through web messaging. This is important for restaurants that operate outside of normal business hours and may have questions or need assistance troubleshooting their POS system right away. 

An online help center is also available where customers can access video tutorials and informational articles. Live training sessions led by Toast experts are offered as well.

Square customer service

Square’s customer support may be contacted by phone or live chat Monday to Friday between the hours of 6 a.m. and 6 p.m. PST. This can make it challenging for businesses to find a quick solution should any problems come up outside of those times. The company also has a help center and community forum that provide an assortment of resources. 

Final verdict

Winner: Square

While Toast excels in many categories, Square offers greater versatility in its services. It’s suitable for all different kinds of businesses and includes a comprehensive suite of POS features that are useful for streamlining everyday tasks and improving the customer experience. Square is also a bit more transparent with pricing and doesn’t require customers to sign a contract or pay setup fees.

Who is Toast best for?

Generally, Toast is the best option for small to medium-sized eateries. Those in the food service industry need durable hardware and POS software that’s optimized for restaurant operations. It also works well for businesses that want more flexibility when it comes to curbside and self-ordering.

Who is Square best for?

Square is the better option for businesses wanting a straightforward and affordable POS setup. It may appeal to merchants who have diverse software needs but still prefer to use industry-specific features.

Square is also better suited to customers looking for a system that can help with many aspects of their daily operations, such as invoicing, payroll, marketing and inventory management.

Frequently asked questions (FAQs)

Which is better, Toast or Square?

Toast and Square are both popular payment processing platforms, but which is better for a particular business depends on the merchant’s specific needs. Where Toast really shines is in its resilient POS hardware, while Square stands out for its extensive catalog of software features. 

Is Toast cheaper than Square?

Though Toast and Square each offer a free version of their POS system, Square is likely to be cheaper for any business that decides to go with a paid plan. These start at $29 per month with Square compared to $69 per month for Toast. 

Additionally, Square allows merchants to use existing equipment in combination with the company’s affordable products, whereas Toast’s standard plans require upfront payment for pricey hardware. Toast also has chargeback fees, but Square doesn’t.

Do I need a business bank account to use Toast or Square?

To set up a Toast account, merchants must have a business checking account. The company doesn’t accept personal or savings accounts. Square only requires a transactional bank account that can be used for withdrawals, transfers, refunds or chargebacks. It doesn’t specify if this has to be a business account. 

How can I choose the best credit card processing company for my business?

Before choosing a credit card processing company, there are several factors to think about. Evaluate your business model, and consider these questions:

• What does the company charge for in-person versus online transactions, and which does your business handle the most?
• Is the company’s hardware and software compatible with your business’s needs?
• Do you have to sign a long-term contract?
• Are you able to integrate existing systems for increased functionality?
• Which integrations are available?

Each of these elements will help you decide which company is the best fit for your business. The right processor should also be user-friendly, offer pricing transparency and support secure transactions.

How is Toast different from Square?

The main difference between these two credit card processing platforms is that Toast only provides POS solutions for the restaurant industry, while Square offers a more comprehensive POS system. Toast’s hardware is also specially built with the restaurant industry in mind, which means it’s more resistant to hazards like spills and heat. 

The pricing methods both companies use vary as well. Toast has payment plans available, which involve either paying for the hardware upfront and paying a monthly software fee or paying a higher processing fee for transactions without any initial cost for hardware. On the other hand, Square charges a flat transaction fee regardless of the plan that’s chosen. 

Finally, note that Square plans can be canceled at any time, but Toast requires businesses to sign a two-year contract.