TORO POS vs Square for Tobacco Shops
An honest comparison built by tobacco retailers who understand both systems.
⚠️ The Biggest Issue: Square Shuts Down Tobacco Accounts
Before comparing features, you need to know: Square regularly terminates tobacco merchant accounts without warning – sometimes holding funds for 90+ days. This is the #1 complaint we hear from shops switching to TORO. If you sell tobacco as your primary business, Square is a major risk.
The Quick Decision
Choose TORO If:
- ✅ Tobacco is your primary business
- ✅ You sell cigars by stick/pack/box
- ✅ You can’t risk losing payment processing
- ✅ You do $30k+/month in sales
- ✅ You want support from tobacco experts
Choose Square If:
- ✅ Tobacco is <30% of sales
- ✅ You do under $15k/month
- ✅ You need mobile POS capability
- ✅ You want $0 upfront cost
- ✅ You’re okay risking account shutdown
Real Cost Comparison (3 Years)
Here’s the actual total cost for a typical tobacco shop over 3 years:
Scenario: Tobacco shop doing $50,000/month in credit card sales
- $600,000/year in credit card transactions
- 2 employees
- 1 POS station
| Cost Category | Square (3 Years) | TORO (3 Years) |
|---|---|---|
| Upfront Software Cost | $0 | $5,000 |
| Monthly Software (36 mo) | $2,160 $60/mo × 36 (Plus plan) |
$4,284 $119/mo × 36 |
| Processing Fees (36 mo) | $46,800 2.6% × $50k × 36 |
$36,000 2.0% × $50k × 36 Or $0 with fee passthrough* |
| Hardware | $1,000 iPad + stand |
$1,200 Touchscreen terminal |
| Total 3-Year Cost | $49,960 | $46,484 Or $10,484 with fee passthrough* |
| *Fee passthrough = customers pay credit card fees, you pay $0 in processing costs | ||
Save $3,476 – $39,476 Over 3 Years
Plus: TORO uses tobacco-friendly processing – zero risk of account shutdown
Card-Not-Present Rate Comparison
Phone Orders Cost You More With Square
Square CNP Rate
3.5% + 15¢
Per phone/mail order transaction
TORO CNP Rate
2.0%
Same rate as in-store
Annual Savings on $10k/month Phone Orders:
$1,800/year
Square charges $4,200/year, TORO charges $2,400/year
No Price Increase Since 2013
TORO launched in 2013 at $5,000 + $119/month.
That’s still our price today. Zero increases in 13 years.
When was Square’s last price increase? Ask them.
Feature Comparison
Multi-Pack Inventory
Square
❌ Not built-in. Create separate SKUs for each pack size. Manually adjust inventory when breaking up boxes. Inventory drift is common.
Workarounds required, error-prone
TORO
✅ Native support. One product, sell at any level (stick/pack/box/carton). Inventory automatically adjusts across all pack sizes.
Built for cigars, always accurate
Account Shutdown Risk
Square
⚠️ HIGH RISK. Tobacco classified as “high risk.” Regular account terminations. Funds can be held 90+ days. No warning, no recourse.
This is the #1 issue we hear about
TORO
✅ ZERO RISK. Uses Premium Tobacco Processing (PCA-recommended). They specialize in tobacco retail. No surprise shutdowns.
Sleep easy knowing you won’t lose processing
Age Verification
Square
⚠️ Optional prompt. Can be configured but staff can skip. Relies on employee diligence.
Better than nothing, not foolproof
TORO
✅ Mandatory enforcement. Cannot complete tobacco transaction without verification. Configurable age (18/19/21+). Protects your license.
Non-bypassable compliance
Support
Square
⚠️ Email/chat only on free plan. Phone support requires $60/mo Plus plan. Generic retail support – don’t understand tobacco.
Ask about cigars, get confused responses
TORO
✅ Unlimited phone/email included. Support from tobacco retailers who understand your business. Free remote assistance, free training.
Ask about cigars in cello, get real answers
Platform & Hardware
Square
✅ iPad/Android/web. Cloud-based, mobile POS, access anywhere. Modern platform. Works offline temporarily.
Flexible and modern
TORO
❌ Windows PC only. Local installation. Works fully offline. Not cloud-based. More reliable but less flexible.
Reliable but platform-limited
What Square Does Better
To be fair, Square has advantages:
- $0 upfront: No software purchase required. Start today.
- Cloud platform: iPad, Android, web browser. Access from anywhere.
- Huge ecosystem: Thousands of app integrations.
- 5-minute setup: Create account, start selling immediately.
What TORO Does Better
- No shutdown risk: Tobacco-friendly processing – your funds are safe.
- Multi-pack inventory: Sell cigars at any level, inventory stays accurate.
- Lower processing rates: 2% avg vs Square’s 2.6% – saves $3,600/year on $50k/mo.
- Fee passthrough: Pass credit card fees to customers = $0 processing cost.
- Tobacco expert support: Phone support from people who run tobacco shops.
- Built for tobacco: Age verification, compliance, tax management – all native.
6 Questions to Ask Square
Before choosing Square, ask them these questions directly:
- What is your exact in-store processing rate for tobacco? (2.6% + 10¢ is the published rate)
- What is your card-not-present rate? (3.5% + 15¢ for phone/mail orders)
- What is your online e-commerce rate? (2.9% + 30¢)
- Do you make money from processing margins? (Yes – they mark up processing rates)
- When was your last price increase? (Ask for their pricing history)
- What is your policy on tobacco merchant accounts? (Ask about shutdown risk and fund holds)
If they won’t answer these questions clearly, that’s a red flag.
What Real Tobacco Retailers Say
“TORO’s multi-pack inventory is exactly what we needed. Square couldn’t handle cigars properly.”
– Greg Zimmerman, VP PCA
Tobacco Company, Harrisburg PA
“Switched from Square after they threatened to shut us down. TORO uses tobacco-friendly processing.”
– Stephen Rast
Tobacco Cabana, TX
“The 2% processing rate on phone orders saves us thousands compared to Square’s 3.5%.”
– John Anderson, President PCA
W. Curtis Draper, Washington DC
“Support actually knows tobacco. Square support had no idea how to help with cigar inventory.”
– Eli Swett
SMoKE Cigar Lounge, PA
The Bottom Line
If tobacco is your primary business, Square is a risky choice.
Even if you save $3,000 over 3 years with Square’s lower monthly fees, one account shutdown that holds your funds for 90 days will cost you far more in lost cash flow and business disruption. Plus you’re dealing with a system that wasn’t built for tobacco – meaning constant workarounds and inventory headaches.
Choose TORO if you…
- Sell tobacco as your primary or sole business
- Cannot risk losing payment processing
- Sell cigars by stick/pack/box and need accurate inventory
- Do $30,000+ per month in sales
- Want support from people who understand tobacco retail
- Prefer paying more upfront to save long-term
Choose Square if you…
- Tobacco is less than 30% of your total sales
- Do under $15,000 per month
- Need $0 upfront to get started
- Want mobile POS and cloud access
- Can accept the risk of account shutdown
- Don’t sell cigars in multiple pack sizes
See TORO in Action
Schedule a demo and see how TORO handles multi-pack inventory, compliance, and tobacco-friendly processing – with zero shutdown risk.