Square is a widely used point of sale (POS) system across retail, food and beverage, beauty, and other industries. Square’s main appeal is in its simplicity and low-cost options.
While Square can be a great fit for general retail, it isn’t ideal for businesses that routinely handle niche use cases — and if there’s one area of retail that’s truly niche, it’s thrift and secondhand stores.
To do things like track donated and nonstandard inventory, keep detailed financial records for the IRS and board members, and set accurate tax rates, Square often requires manual workarounds or expensive add-ons.
Choosing the right (or wrong) POS system can have major impacts on your business — it’s important to have a clear picture of various providers’ strengths and weaknesses.
In this article, we’ll dive into Square — both where it excels and where it falls short — along with recommended Square alternatives for thrift stores.
Why Square Works Well for General Retail
Square is popular for a reason. Founded in San Francisco in 2009, it now serves more than 4 million businesses.
Square offers different entry points depending on business size, including free plans that charge slightly higher processing fees but require low upfront hardware costs and no monthly subscription.
The platform sells a wide range of hardware for different store sizes and uses an app store that lets businesses pay for specific add-ons as needed. It also supports a mix of online and offline payments, ensuring businesses have more uptime.
Why Square Isn’t a Good Fit for Thrift Stores
All of this makes Square sound pretty good, and if you’re a small business selling standard inventory, it can be a great, beginner-friendly system.
| What Square includes | |||
|---|---|---|---|
| ✓ | No-contract payment processing | ✓ | E-commerce support |
| ✓ | Basic inventory | ✓ | Loyalty programs |
| ✓ | QuickBooks integration | ✓ | Volunteer and staff management |
That said, businesses often run into issues as they scale or when they need more industry-specific stock management, accounting, or compliance solutions.
Here are some aspects of Square to consider before you implement it into your thrift shop:
| Where Square is missing the mark | |
|---|---|
| Higher processing fees at lower tiers | In addition to supporting only basic inventory and reporting, Square's lower-tier or free software plans usually make up their costs by charging higher processing fees (around 2.6% + 15 cents for in-person transactions on free plans). |
| Priority support for premium tiers only | Square offers 24/7 priority support, but only for users paying for their Premium plan ($149 per month). Free plans only come with support over chat and email. |
| No donation intake and tracking | Square doesn't include any donation or intake tracking — items have to be entered manually, and there are no built-in donor records and receipts. |
| Basic inventory vs. production management | Square does a good job at handling standard SKUs, but doesn't have automated systems for categorizing and pricing donated items. |
| No nonprofit reporting | Square includes basic sales and inventory reports, but doesn't separate revenue sources like grants, sales revenue, processing fees, and roundup donations. |
| Limited roundup donation support | Square has options for including donations at checkout, but it requires a paid add-on. |
| No pickup scheduling | Square doesn't natively include any functions for pickup scheduling and booking. |
Theoretically, some of these issues can be alleviated with paid add-ons — but those small costs can quickly add up, and bolt-on solutions can make the system more complex, which isn’t ideal when the majority of your workforce is short-term volunteers.
Square’s Plus plan, which includes inventory and staff management, starts at $49 per month.
Why Industry-Specific Solutions Are Easier (and More Affordable) in the Long Run
One common misstep that business owners take when evaluating POS systems is focusing only on the price tag. It’s important to take a breath and look at the whole package, not just the monthly cost. Does it include thrift-specific features? If not, how expensive and complicated will it be to set them up? Do you get onboarding and tech support?
Put another way, a POS system built for general retail might have a lower price tag, but come with hidden fees and complications that cost extra time and money in the long run.
This is why an increasing number of thrift store owners are turning to specialized thrift store POS systems like ThriftCart.
With ThriftCart, stores get access to specialized features out of the box, including:
| ThriftCart's standout features | |
|---|---|
| Color tags and automatic pricing | Assign colors to incoming items and build discount schedules directly in the system — no manual price changes needed. Tags print with both the original price and the applicable discount schedule. |
| Roundup donations | Give shoppers an easy way to support your mission at checkout with roundup prompts at the register. Track roundup donation totals separately from sales transactions automatically. |
| Detailed financial reports | Generate financial reports that cleanly separate store revenue, donations, grant funds, and processing fees. Visual dashboards and exportable reports make it easier to communicate results to your board and stakeholders. |
| Simplified UI for volunteers | Spend less time training and more time serving with a simplified UI. New volunteers can handle intake and checkout confidently in minutes. |
| 24/7 tech support and dedicated onboarding | Get live 24/7 phone support and a dedicated onboarding specialist to help you set up your system and train staff. |
| Standardized donation intake | Record incoming donations from any tablet or desktop, auto-generate donor records, and send or print receipts for larger donations — all in one place. |
| Production management | Track items from the moment they come through the door — set pricing rules, build standardized intake workflows, and keep inventory counts accurate in real time. |
| Pickup scheduling and route optimization | Let donors or staff schedule pickups online or in person. ThriftCart's built-in route optimization and status updates keep your team organized without extra tools. |
| Flexible hardware options | Buy discounted hardware or use what you already have — switch POS systems without being forced to get all new equipment. |
| Compliant payments and accounting | Apply the right sales tax based on item category, location, or nonprofit status, and let the system sort revenue and donation streams automatically. |
| Integrations | Plug ThriftCart into the tools your team already uses — including In the Loop AI, Shogo, Shopify, Zapier, and CharityProud. |
ThriftCart plans start at $99 per month with options to buy new hardware or use your existing equipment.
Square Alternatives: Recommended Thrift Store
POS Systems
The best POS system for a thrift or secondhand store is one that’s built for it. Thrift store POS systems come with industry-specific features and knowledgeable support that understand the quirks of running a donation-based business.
With that in mind, here are our recommendations:
| System | Best for | Standout features | Pricing |
|---|---|---|---|
| ThriftCart | Our top-rated, comprehensive system designed exclusively for thrift stores |
|
Plans start at $99/month |
| Thrift Works | Thrift stores that prefer to lease their hardware |
|
Custom quotes on their website |
| SimpleConsign | Thrift stores with dedicated vendors and consignment options |
|
Professional plan starts at $99/month for the first year |
| AntiqueSoft | Antique malls and stores that rent out their space to other vendors |
|
No standard pricing — custom quotes available |
| S-Tags | Stores that need advanced features to speed up production |
|
Custom quotes on their website |
Choosing a POS system isn’t something to rush. Make a list of must-have features and real pain points or scenarios. That way, when you schedule demos, you can see how the software performs in real situations, not just a generic overview.
ThriftCart: A Trusted, Industry-Specific Solution
If all you need your POS system to do is process payments, then Square offers an affordable solution — but a POS system can (and should) do more. The right POS system can simplify day-to-day tasks and reduce manual data entry so you can spend less time on admin and more time on creating an excellent customer experience.
ThriftCart is an end-to-end solution designed specifically for thrift stores, with custom-built features that cover everything from donation intake and scheduling to compliant payments and tax reporting.
Schedule a custom demo today to see why hundreds of thrift stores trust ThriftCart.
