Retail businesses face more technology decisions today than ever before, and your point-of-sale system sits at the heart of daily operations. With countless POS options flooding the market in 2025, Toast and Square continue to dominate conversations among business owners seeking reliable, feature-rich solutions. This comprehensive analysis breaks down everything you need to know about these two platforms, from pricing structures to real-world performance, helping you make a confident decision that supports your current operations and future expansion goals.
Toast began as a restaurant-focused solution that has expanded into retail markets, bringing enterprise-grade features and durability to its platform. Square started with small businesses across various industries and has developed specialized retail functionality over time. Both systems offer distinct approaches to hardware, payment processing, and business management. Understanding these fundamental differences helps retailers make informed decisions about their technology investments.
The choice between these platforms often comes down to your business model and priorities. Toast excels in providing robust, enterprise-level solutions for established businesses willing to commit to long-term contracts. Square focuses on flexibility, transparency, and accessibility for businesses of all sizes, from startups to established retailers.
Toast provides proprietary, Android-based hardware specifically engineered to withstand demanding environments. The Toast Flex, Toast Go 2, and Toast Tap feature spill-resistant designs and robust construction that handle high-traffic retail environments effectively. This restaurant-grade durability comes at a premium price point, with terminals starting at $699 plus monthly software fees. Toast offers pay-as-you-go options that eliminate upfront hardware costs in exchange for higher processing fees.
Square emphasizes flexibility and affordability in its hardware offerings. Retailers can use existing iPads or Android devices, significantly reducing initial costs. Square’s dedicated hardware includes the compact Square Terminal ($299), the handheld Square Mobile ($399), and the comprehensive Square Register ($799). These options provide scalable solutions that grow with your business. Square’s hardware is generally more affordable and can be purchased outright or financed through Square’s payment plans.
The ability to bring your own device (BYOD) makes Square particularly attractive for small retailers or those just starting out. This flexibility comes with potential durability trade-offs compared to Toast’s purpose-built hardware. For retailers with high-volume environments or those concerned about hardware longevity, Toast’s durability may justify the higher cost, while businesses prioritizing flexibility and lower initial investment will likely favor Square’s approach.
Toast processes payments through its own platform, offering rates that vary based on your subscription plan and negotiated terms. Standard processing fees typically start at 2.49% plus 15 cents per transaction for in-person payments, though rates can be customized for higher-volume businesses. Toast’s rates for American Express cards are higher at 3.29% plus 15 cents per transaction, which can impact retailers with a significant percentage of Amex customers. The proprietary processing means you’re locked into their payment ecosystem, but it ensures seamless integration with their hardware and software.
Square provides more transparent, flat-rate pricing that remains consistent regardless of card type. Current rates start at 2.6% plus 10 cents per transaction for in-person payments, with higher rates for keyed-in transactions at 3.5% plus 15 cents. Unlike Toast, Square charges the same rate for all card types, including American Express. Square’s processing is instantly approved with no lengthy application process, making it faster to get up and running.
Square also offers same-day deposits (for a small fee) or next-day deposits at no additional cost when using Square Checking, providing better cash flow management than Toast’s standard 1-2 business day deposit timeline. Both systems can function offline during internet outages, though Toast can only accept swiped cards in offline mode, while Square Terminal offers broader offline functionality. For retailers concerned about payment flexibility, Square’s predictable flat-rate pricing, faster deposits, and no long-term processing commitments provide significant advantages over Toast’s variable structure.
Toast offers growing inventory features but lacks some retail-specific functionality. The system provides real-time inventory tracking, low-stock alerts, and the ability to mark items as out of stock across locations. Toast can track inventory costs and generate reports on product performance, but it doesn’t offer advanced features like FIFO/LIFO tracking or matrix inventory management for items with multiple attributes. These limitations can significantly impact retailers with diverse product catalogs.
Square’s inventory management system was designed with retail in mind and offers more comprehensive functionality for product-based businesses. Square enables retailers to track unlimited SKUs, set automatic reorder points, manage vendor relationships, and receive stock level alerts. Square’s free plan includes basic inventory features, while the Plus tier adds advanced tools like purchase order management and cost of goods sold (COGS) tracking. The system supports composite items and variant tracking across multiple attributes, making it better suited for apparel and specialty retailers.
Square’s robust bulk import and export capabilities make initial setup and ongoing management more efficient than Toast’s more manual approach. For retailers with complex inventory needs, Square provides deeper functionality with a more intuitive interface. Toast’s inventory system works adequately for basic retail operations but may require third-party integrations for businesses with extensive product lines or frequent inventory turnover.
While traditional POS systems handle in-store operations effectively, restaurants face unique challenges with phone orders and customer service that require specialized solutions. Loman offers a revolutionary approach with its 24/7 AI phone agent designed specifically for restaurants. This AI for restaurants technology seamlessly integrates with popular POS systems like Square, Toast, and Clover, creating a comprehensive operational ecosystem that addresses the critical gap in phone-based customer service.
Loman’s AI system is trained on restaurant menus, policies, and customer preferences to provide accurate order-taking and customer service around the clock. The platform reduces missed calls, shortens wait times, and improves sales by ensuring every customer inquiry receives professional attention regardless of staffing levels or operating hours. Built-in analytics and real-time insights help restaurant owners make better decisions about menu optimization, customer preferences, and operational efficiency. Unlike general POS solutions that focus primarily on in-store transactions, Loman specializes in restaurant-specific challenges like managing phone orders, handling special requests, and maintaining consistent customer service quality across all interaction channels. The system can go live in under a day and scales efficiently for single locations, multi-unit operations, or franchise systems.
Toast offers a robust customer engagement suite but requires additional subscription fees for most features. The loyalty program allows customers to earn points based on spending, with customizable redemption options and automated marketing campaigns triggered by customer behavior. The platform includes customer profiles that track purchase history, preferences, and contact information, enabling personalized marketing efforts. Toast’s digital gift card program supports both physical and digital options but comes as a premium add-on with additional monthly costs.
Square provides a more integrated approach to customer engagement, with some features available in its free plan. Square’s basic customer directory automatically captures customer information during transactions, while the paid loyalty program enables points-based or visit-based rewards that integrate directly with the checkout process. Square Marketing allows retailers to create email campaigns based on customer purchase history and behavior, with performance analytics showing direct ROI from marketing efforts. Square’s gift card program supports physical and digital options and integrates with the Square Online store for e-commerce sales.
Both platforms offer strong customer engagement tools, but Square typically proves more cost-effective for small to medium retailers. Toast’s customer engagement features generally require additional monthly fees, while Square includes basic functionality in its standard plans with clear pricing for premium features. Square’s marketing tools also integrate more seamlessly with social media platforms and online channels, making them better suited for retailers with an omnichannel strategy.
Toast provides comprehensive reporting tools with retail-specific metrics and customizable dashboards. The system offers real-time sales data, product performance analytics, and detailed labor reports that help identify trends and optimize operations. Advanced reporting features include hourly sales breakdowns, comparative period analysis, and product mix evaluations. However, Toast restricts access to some advanced reporting features to higher-tier subscription plans, limiting data visibility for retailers on basic packages.
Square delivers robust analytics that are accessible across all subscription levels, with a user-friendly interface that makes data interpretation straightforward even for non-technical users. Square’s reporting suite includes real-time dashboards, detailed sales reports by item and category, and customer spending patterns. The system provides visual representations of data through graphs and charts that highlight trends at a glance. Square’s free plan includes basic reporting functionality, while paid tiers add advanced features like projected sales forecasting and customer cohort analysis.
Square excels in mobile reporting through its intuitive app, allowing retailers to monitor performance remotely. While both platforms offer strong analytics capabilities, Square provides better accessibility to critical business insights without requiring premium subscriptions. Toast’s reporting is more customizable and may offer deeper analytics, but Square’s approach democratizes data access across all business sizes.
Toast offers a solid but more limited integration ecosystem, with approximately 100+ third-party integrations. These connections focus primarily on restaurant-specific solutions but include essential retail-relevant integrations for accounting (QuickBooks, Xero), e-commerce (Shopify), and employee management. Toast’s API is available for custom integrations, though it typically requires developer assistance to implement. While Toast’s integrations are growing as they expand into retail, their ecosystem remains less extensive than Square’s for general retail operations.
Square boasts a significantly larger integration ecosystem with 300+ pre-built connections spanning retail-specific tools, accounting software, e-commerce platforms, and marketing solutions. Square’s App Marketplace makes discovering and implementing these integrations straightforward, with many requiring minimal setup. Square’s open API and developer tools make custom integrations more accessible for businesses with unique requirements. Notable retail-relevant integrations include robust connections with major e-commerce platforms and comprehensive accounting solutions.
For retailers with complex technology stacks or specific third-party tools they rely on, Square’s broader integration ecosystem provides significantly more flexibility and connectivity options. Toast’s more limited integration selection may require workarounds or manual processes for retailers with specialized needs. Square’s e-commerce integrations are more developed and seamless, making it a stronger choice for retailers with omnichannel operations.
Toast offers tiered pricing with a free starter option that includes higher processing rates (3.09% + $0.15 per transaction) in exchange for no monthly software fees. Their standard retail plan starts at $69 per month with lower processing rates (2.49% + $0.15). Toast requires a two-year contract for most plans, with early termination fees applying if you cancel. Additional costs include mandatory hardware purchases or rentals, plus add-ons like digital ordering ($75/month), loyalty programs (starting at $99/month), and gift cards ($50/month setup plus per-card fees).
Square provides more straightforward pricing with genuinely free options for smaller retailers. Their free plan includes basic POS functionality with standard processing rates (2.6% + $0.10 per transaction). Square for Retail Plus costs $69 per month per location with the same processing rates but adds advanced inventory, reporting, and team management features. Square operates on a month-to-month basis with no long-term contracts or cancellation fees. Hardware is optional, as Square works on existing devices, though dedicated hardware is available for purchase or financing.
Add-ons like loyalty ($45/month) and email marketing (starting at $15/month) are clearly priced and can be added or removed as needed. Square offers superior pricing transparency and flexibility, making it easier for retailers to predict costs and adjust services based on seasonal needs. Toast’s contract requirements and variable pricing make it harder to accurately forecast total costs of ownership.
Toast employs end-to-end encryption for all payment transactions, utilizing P2PE (point-to-point encryption) to protect card data from the moment it’s captured. The system operates on a secure, closed Android environment that reduces vulnerability to common exploits. Toast implements role-based permissions allowing owners to restrict staff access to sensitive functions and data. Their system includes fraud prevention tools that flag suspicious transactions based on predetermined criteria. Toast maintains PCI DSS compliance and provides automatic software updates to address security vulnerabilities.
Square matches these security fundamentals while adding additional features beneficial to retailers. Like Toast, Square offers end-to-end encryption and tokenization of payment data, maintaining PCI DSS compliance across all transaction methods. Square’s fraud prevention system uses machine learning algorithms that adapt to emerging threats, potentially offering more responsive protection than Toast’s rule-based approach. Square includes free dispute management tools that help retailers respond to chargebacks more effectively, an important consideration for businesses selling high-value items.
Both platforms offer two-factor authentication, though Square’s implementation extends to more system areas than Toast’s. While both systems provide strong security foundations, Square offers slightly more comprehensive protection for retail-specific concerns like chargebacks and fraud prevention. Toast’s closed ecosystem approach provides good baseline security but may be less adaptable to emerging threats. Both platforms maintain regular security updates and compliance with industry standards, ensuring core protection for sensitive data regardless of which system you choose.
Toast provides 24/7 customer support across all subscription tiers, offering phone, email, and chat assistance. Their onboarding process includes personalized implementation support with dedicated specialists who help configure your system and train staff. Toast maintains a comprehensive knowledge base with video tutorials, troubleshooting guides, and best practices. However, customer reviews indicate increasing wait times for support in recent years, with some users reporting difficulty reaching specialists during peak hours.
Square’s support structure varies by subscription level. Free plan users receive email support and access to a community forum, while paid plans add phone support during business hours (6am to 6pm PST Monday through Friday). Square’s self-service resources are extensive, including a searchable help center, video tutorials, and webinars specific to retail operations. Their implementation process is more self-guided than Toast’s, with optional paid onboarding services available for larger businesses.
Customer feedback suggests Square’s email support response times have improved significantly, though phone support can still experience delays during busy periods. Toast offers more comprehensive direct support with its 24/7 availability and included implementation assistance, making it potentially better for retailers who prefer guided setup and ongoing personalized help. Square excels in self-service resources and community support, which may better serve tech-savvy retailers comfortable with more independent implementation.
When evaluating Toast versus Square for your retail operation, the decision ultimately hinges on your specific business priorities, scale, and growth trajectory. Toast offers enterprise-grade durability with hardware designed to withstand demanding environments, comprehensive reporting capabilities, and 24/7 support. These advantages come with higher costs, less flexible contract terms, and a more limited integration ecosystem. Toast may be the better fit for larger retail operations with multiple locations, businesses transitioning from restaurant to retail hybrid models, or retailers requiring extremely durable hardware in challenging environments.
Square delivers superior flexibility with transparent pricing, an extensive integration ecosystem, and more retail-specific inventory management capabilities. The platform excels in affordability with genuinely free options for smaller businesses, no long-term contracts, and the ability to use existing hardware. Square proves particularly well-suited for small to medium retailers, businesses with omnichannel sales strategies, pop-up shops or mobile retailers, and operations with complex inventory needs. The intuitive interface and self-service resources make Square easier to implement without extensive training or technical expertise.
For most pure retail businesses, particularly those just starting or in growth phases, Square’s retail-focused features, transparent pricing, and flexibility offer compelling advantages. Larger enterprises with specific needs around durability or 24/7 support might find Toast’s premium offerings justify the higher cost and contractual commitment. As both platforms continue evolving, retailers should evaluate their current needs while considering future growth plans to select the system that will scale effectively with their business. By carefully weighing these factors against your specific operational requirements, you can confidently select the POS system that will best support your retail success today and tomorrow.
For restaurants looking to optimize their entire customer service ecosystem, Loman provides the missing piece that traditional POS systems don’t address—intelligent phone management that works seamlessly with your existing Square, Toast, or Clover setup. This fast-to-implement, scalable solution serves single locations, chains, and franchises seeking enhanced efficiency and improved customer experience across all touchpoints.
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