Square vs. Shopify: Which POS should I use for my business?
POS systems are an expense that many small business owners fail to consider. However, your customer’s relationship with your system may be the single most important factor in completing their transaction.
Bad purchasing experiences lead to an increased chance for customers canceling the sale, lines getting backed up, and customers not returning to your business.
A good POS system can also help you manage your employees, report on your sales history, and automate processes such as tipping and inventory management.
Choosing the right POS system is a crucial component of running your business smoothly and conducting your transactions professionally. Two of the biggest choices in today’s market are the Square POS system and Shopify POS systems.
Knowing the advantages and disadvantages of each will help you make the right choice for your business.
Both Square and Shopify provide you the services required to process payments from credit and debit cards without separate merchant accounts required on your part.
Though the benefits of each system for their payment processing services are similar, there are two major differences between them.
The first is that Square doesn’t let you use other services to process your payments: you must go through Square. Shopify, on the other hand, lets you diversify your system (for a transaction fee). Depending on how restricted you want to be on how you process payments, you may want to choose differently.
The second difference involves internet connectivity within your business. Only Square allows you to process card payments (including credit, debit, and gift cards) while the system is offline. Though Shopify will still permit transactions, you won’t be able to accept these forms of payments.
Specifically, if you run a small business and are worried about the effectiveness of your internet connection, Square will provide a stronger safety net.
The first consideration you likely made when researching which POS system you wanted for your business was how much each system costs. However, this question is a little more complicated than comparing numbers.
With Square, you choose a payment plan based on your needs. Depending on which version of the system you get, plans range from $10 to $300 a month. Conveniently, Square offers versatility in the features you get and the price you pay.
Shopify, on the other hand, is free upfront. Their system instead charges you processing fees on your transactions, which vary based on the type of payment. You can upgrade Shopify to higher-end versions for specific businesses, but these aren’t free.
To make the best choice, you need to know your expected volume and types of transactions you plan on processing.
In many ways, the Square POS and Shopify POS systems are similar. They both process all major credit card payments. Moreover, they are relatively equal in terms of their automatic inventory management, analytics, and checkout systems, and both are highly regarded as top-of-the-line POS systems.
Your POS system is an integral part of the daily operations of your business. Therefore, it’s important to know the differences between them and how they will impact your transactions.