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 2026, Toast and Square continue to dominate conversations among business owners seeking reliable, feature-rich solutions. This full 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.
TLDR:
Toast's hardware is proprietary and built for durability: the Toast Flex, Toast Go 2, and Toast Tap use spill-resistant, Android-based designs suited to high-traffic retail. That durability carries a premium, with terminals starting at $699 plus monthly software fees, though a pay-as-you-go option trades the upfront cost for higher processing fees.
Square takes the opposite approach, letting retailers use existing iPads or Android devices to cut costs, or choose dedicated hardware like the Square Terminal ($299), Square Mobile ($399), or Square Register ($799), which can be purchased outright or financed. That BYOD flexibility makes Square appealing for smaller or newer retailers, though it trades some of Toast's purpose-built durability for a lower initial investment.
Toast's payment processing fees vary by plan, typically starting at 2.49% plus 15 cents per in-person transaction, with a higher 3.29% plus 15 cents rate on American Express that can add up for retailers with a lot of Amex customers. That proprietary processing locks you into Toast's ecosystem in exchange for tight hardware and software integration.
Square keeps its payment processing fees flat and predictable at 2.6% plus 10 cents per in-person transaction, 3.5% plus 15 cents for keyed-in sales, with no surcharge on Amex. Approval is instant, and deposits land next-day for free or same-day for a small fee, beating Toast's standard 1-2 day timeline. For retailers who want predictable costs and faster access to cash, Square's flat-rate structure is the easier bet.
Toast covers the basics with real-time inventory tracking, low-stock alerts, and out-of-stock flags across locations, plus cost and performance reporting. It stops short of FIFO/LIFO tracking or matrix inventory for items with multiple attributes, a gap that matters more as a product catalog grows.
Square was built with retail in mind: unlimited SKU tracking, automatic reorder points, vendor management, composite items, and variant tracking across attributes, with purchase orders and COGS tracking on the Plus tier. Its bulk import/export tools also make setup and ongoing management faster than Toast's more manual process, giving Square the edge for retailers with complex or fast-turning catalogs.
Traditional POS systems handle in-store operations well, but phone orders and customer service are a separate challenge a POS alone doesn't solve. Loman brings a 24/7 voice AI phone agent built just for restaurants. This AI for restaurants technology integrates directly with POS systems like Square, Toast, and Clover, closing the gap in phone-based customer service without replacing the POS restaurants already run.
Loman is trained on a restaurant's menu, policies, and customer preferences to close full orders and take payment over the phone. It cuts missed calls, shortens wait times, and helps grow sales by giving every caller a professional response regardless of staffing levels or hours. Built-in analytics and real-time insights help restaurant owners make better decisions about menu changes, customer preferences, and staffing. Unlike general POS solutions that focus on in-store transactions, Loman specializes in restaurant-specific challenges like managing phone orders, handling special requests, and keeping customer service consistent across every channel. It goes live in under 24 hours and scales for independent operators, multi-unit groups, and national brands alike.
Toast's loyalty and marketing suite is capable, with points-based rewards, automated campaigns, detailed customer profiles, and digital gift cards, but most of it sits behind premium add-on pricing.
Square bakes more of this in from the start: a free customer directory, a paid loyalty program that plugs straight into checkout, email marketing with ROI tracking, and gift cards that connect to Square Online. For small to mid-size retailers, that makes Square the more cost-effective way to build customer engagement without stacking add-on fees.
Both platforms offer solid reporting, real-time sales data, product performance, and trend analysis, but access differs. Toast gates some of its deeper analytics, like comparative period analysis and product mix evaluations, behind higher-tier plans. Square keeps its dashboards, item and category-level reports, and visual sales trends available across all tiers, including the free plan, with forecasting and cohort analysis added at the paid level. For retailers who want full visibility without paying for a premium tier, Square's approach is more accessible.
Toast's ecosystem includes 100+ integrations, covering accounting (QuickBooks, Xero), e-commerce (Shopify), and employee management, though its API typically needs developer help to implement and the catalog still leans restaurant-first.
Square's App Marketplace offers 300+ integrations across accounting, e-commerce, and marketing, most with minimal setup, plus an open API for custom work. For retailers with complex tech stacks or specific third-party tools already in use, that bigger, more self-service ecosystem gives Square a real edge.
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 POS pricing 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 pricing starts at $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 | Square | |
|---|---|---|
| Base Plan | Free (Starter) or $69/month (Standard) | Free or $69/month (Retail Plus) |
| In-Person Processing Rate | 3.09% + $0.15 (Starter) / 2.49% + $0.15 (Standard) | 2.6% + $0.10 (all plans) |
| Amex Rate | 3.29% + $0.15 | Same flat rate as all cards |
| Contract | 2-year contract required | Month-to-month, no cancellation fees |
| Hardware | Mandatory purchase/rental; terminals from $699 | Optional; works on existing devices; Square Terminal from $299 |
| Loyalty Add-on | From $99/month | $45/month |
| Email Marketing Add-on | Included in higher tiers | From $15/month |
| Deposits | 1-2 business days standard | Next-day free; same-day for a small fee |
Both platforms have moved quickly this year, and a few updates are worth knowing before you decide. Toast deepened its retail push with new integrations through DIGI America and Upshop 360, adding connected weighing, labeling, and in-store inventory intelligence for grocery and specialty retail. Through September 2026, Toast is also offering up to 60% off select hardware for new customers, which changes the upfront cost math for retailers previously put off by hardware pricing.
Square shipped several retail-side improvements in late August: group ordering, bulk pricing tools, and Android barcode scanning directly from device cameras (handy for lean teams that rely on existing devices). The same release included reporting improvements that make item-level performance easier to surface at a glance.
Both platforms are investing in built-in AI analytics, though neither has a clear lead yet.
Neither Toast nor Square picks up the phone when the line is ringing and the counter is three deep. That's the gap that shows up after the paperwork is signed and the hardware is running: whoever is on shift still has to stop what they're doing, or the call goes to voicemail and the order goes to a competitor down the street.
Loman closes that gap without asking a restaurant to pick a side in the Toast versus Square decision. It integrates natively with Square POS and Toast POS, along with Clover, so calls get answered around the clock, full orders get taken, and tickets land directly in the connected POS the same way they would if a staff member typed them in. No re-keying, no separate system for staff to check.
Crust Pizza owner Nick Haselidis says Loman paid for itself in 10 days: "Phones are calm, tickets are bigger, and my team refuses to go back." Pricing starts at $199 a month for unlimited calls, and most restaurants go live in under 24 hours, regardless of which POS system sits at the counter.
Square is generally the better fit for small retailers. It has a genuinely free plan, requires no long-term contracts, works on existing devices, and includes retail-specific inventory features like unlimited SKU tracking and automatic reorder points at no extra cost. Toast's strengths, such as enterprise-grade hardware durability and 24/7 dedicated support, tend to matter more for larger operations with high transaction volumes or multi-location complexity.
Both platforms offer a free starting tier and a paid plan at $69/month, but the structure differs quite a bit. Square charges a flat 2.6% + $0.10 per in-person transaction with no long-term contract, works on existing devices, and lets you add or drop features month-to-month. Toast's free Starter plan runs a higher 3.09% + $0.15 rate, most paid plans require a two-year contract, and hardware starts at $699. Add-ons like loyalty programs cost $99/month on Toast versus $45/month on Square.
Loman is a 24/7 AI phone agent that works alongside your existing POS, not in place of it. It answers every call, takes pickup and delivery orders, and pushes them directly into your Square, Toast, or Clover POS with no manual re-entry. It also handles reservations, menu questions, and upsells around the clock. Most restaurants go live in under 24 hours, and it starts at $199 a month with unlimited calls, replacing variable phone-labor costs with a predictable flat fee.
Toast and Square both handle in-person transactions well; the real differences show up in contract terms, hardware cost, and how deep the inventory tools go once a catalog grows past the basics. Square's flat rates, month-to-month terms, and wider integration set make it the safer default for most independent and growing retailers, while Toast's durability and dedicated support still make sense for high-volume operations willing to commit to a longer contract. Whichever system ends up at the counter, the phone is a separate problem worth solving on its own: Loman answers every call, takes the order, and pushes it straight into a Toast, Square, or Clover POS, so the choice made here doesn't leave revenue on the table once the phone starts ringing.
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