Introduction
Australian small businesses face a stark reality: card payments now account for 76% of all consumer transactions, while cash has plummeted to just 13%, according to the Reserve Bank of Australia's 2022 Consumer Payments Survey. Choosing the right EFTPOS or POS system directly affects your cash flow, daily operations, and overall cost structure.
Zeller and Square are two of the most talked-about payment solutions in Australia — but they serve very different business needs. Picking the wrong one can mean overpaying on transaction fees or missing features that matter as you grow.
Here's a direct breakdown of pricing, hardware, POS features, and payout speed — so you can pick the one that actually fits your business.
TLDR
- Zeller charges 1.4% per transaction and bundles a free Transaction Account and Mastercard, making it the simpler, lower-cost EFTPOS option in Australia
- Square charges 1.6% but offers more specialised POS software for restaurants and retail, plus ecommerce tools and wider hardware options
- Zeller leads on transaction pricing and built-in banking; Square leads on software depth and online payment flexibility
- Neither requires monthly fees or lock-in contracts
- Specialty retailers with complex inventory or multi-location needs will likely outgrow both — purpose-built retail POS systems handle these demands better
Zeller vs Square: Quick Comparison
Hardware and Upfront Cost
Zeller offers:
- Terminal 1: $99 (with built-in receipt printer)
- Terminal 2: $199 (6.5" touchscreen, POS Lite software, no printer)
Square offers:
- Square Reader: $65 (Bluetooth card reader)
- Square Terminal: $329 (standalone touchscreen with printer)
- Square Handheld: $349 (phone-like device with barcode scanner)
- Square Register: $1,099 (full POS register)
Zeller's hardware costs less upfront, while Square's wider range lets you match hardware to your specific setup — from a single card reader to a full register.
Transaction Fees
Zeller:
- 1.4% for all cards (chip/tap)
- 1.7% for keyed entry
- 1.75% + $0.25 for virtual terminal and payment links
Square:
- 1.6% for all cards (in-person)
- 2.2% for keyed entry and card-not-present transactions
Zeller is consistently cheaper for card-present transactions.
POS Software Depth
Zeller has basic POS Lite on Terminal 2 and integrates with 600+ external POS platforms (Lightspeed, Impos, Erply).
Square offers purpose-built POS apps for retail, restaurants, and appointments—built in, no integration needed.
Payouts
Zeller settles next morning into a free Zeller Transaction Account, or next business day to a bank.
Square settles next day to a bank account, or instantly for an added 1.5% fee.
Ecommerce and Remote Payments
Square supports an online store, payment buttons, QR code ordering, and integrations with major ecommerce platforms.
Zeller offers invoicing, a virtual terminal, and payment links—solid for basic remote payments, but without a built-in online store or ecommerce integrations.
Customer Support
Zeller offers 24/7 support by phone, email, and SMS.
Square offers weekday-only support (9 AM–5 PM AET) for free plans; 24/7 support for paid subscribers.
What is Zeller?
Zeller is an Australian EFTPOS and business banking solution launched in 2021, designed to simplify payments and replace the need for a traditional business bank account, bundled into a single package. Founded in 2020 by former Square executives, Zeller holds an Australian Financial Services Licence (AFSL No. 534281) and is regulated locally.
Hardware Options
Terminal 1 ($99):
- Built-in receipt printer
- Basic payment processing
- Best for mobile merchants, market stalls, and sole traders who need simple card acceptance
Terminal 2 ($199):
- 6.5" touchscreen
- POS Lite software built in
- No printer (requires separate purchase)
- Best for cafés, small retailers, and businesses needing basic product catalogues and checkout
Standout Financial Tools
Beyond the hardware, every Zeller terminal ships with a built-in suite of banking tools:
- Free Zeller Transaction Account that receives payouts every morning
- Linked Mastercard debit card for business spending
- Optional savings account
- Corporate expense cards for staff
These tools reduce admin overhead for new or unbanked businesses — useful for anyone who wants payments and banking handled in one place.
Pricing and Connectivity
- 1.4% flat rate (lowest pay-as-you-go rate in Australia)
- No monthly fees
- No lock-in contracts
- Optional SIM card ($15/month) for 4G connectivity when WiFi isn't available
Integrations
Zeller integrates directly with Xero for accounting and supports 600+ POS platforms. However, ecommerce integration is not yet available.
Who is Zeller Best For?
Zeller suits:
- Sole traders, small retailers, cafés, mobile merchants, and market stall operators
- Newly launched businesses that want a clean, low-cost EFTPOS setup without the complexity of a business bank account
- Businesses processing moderate card volumes where saving 0.2% per transaction (vs Square's 1.6%) makes a measurable difference
A business processing $200,000 in card sales annually pays $2,800 with Zeller vs $3,200 with Square — a $400 yearly saving.
What is Square?
Square is a US payments platform founded in 2009, with deep roots in small business POS. It offers a full suite of hardware, software, and financial tools for merchants of all types.
Hardware Range
Square offers five main hardware options:
- Square Reader ($65): Bluetooth card reader for smartphones/tablets
- Square Terminal ($329): Standalone touchscreen with built-in printer
- Square Handheld ($349): Slim phone-like device with barcode scanner
- Square Register ($1,099): Full POS register with customer-facing display
- Square Kiosk: Self-ordering solution for quick-service restaurants
Each device addresses different setup requirements, from mobile vendors to full-service restaurants.
Specialized POS Software
Square offers industry-specific POS apps:
Square for Restaurants:
- Free tier available
- Plus plan: $129/month per location
- Features: table management, course firing, kitchen display systems
Square for Retail:
- Free tier available
- Plus plan: $109/month per location
- Features: advanced inventory, vendor management, purchase orders
Square Appointments:
- Free tier available
- Plus plan: $40/month per location
- Premium plan: $90/month per location
- Features: online booking, client management, automated reminders
Free Tools Included
- Virtual terminal
- Invoicing
- Payment links
- QR code ordering
- Basic online store
Financial Tools
Square Loans: Business cash advances from $300 to $250,000 based on Square sales history, repaid as a fixed percentage of daily card sales.
Instant Transfers: Access funds the same day for a 1.5% fee, useful when cash flow timing is tight.
Pricing
- 2.6% + $0.10 flat rate for in-person transactions
- 3.5% + $0.15 for card-not-present transactions
- No monthly fees for base POS software
Integrations
Square integrates with:
- Accounting: Xero, QuickBooks
- Ecommerce: Wix, OpenCart, and other platforms
- Marketing and loyalty tools
With a clear picture of Square's features and pricing, it's easier to evaluate who actually benefits most from the platform.
Who is Square Best For?
Square suits:
- Retailers wanting one platform for in-store and online sales without juggling multiple systems
- Businesses needing specialized POS features (inventory management, appointment booking, self-ordering kiosks) built in from the start
- Restaurants and hospitality businesses that need table management or course firing
- Operations scaling up over time, from a single card reader to a full register setup
Zeller vs Square: Which is Better for Your Business?
Pricing at Scale
Transaction fees matter more as your card volume grows.
Example calculation:
- Business processing $200,000 annually in card sales
- Zeller (1.4%): $2,800 in annual fees
- Square (1.6%): $3,200 in annual fees
- Annual savings with Zeller: $400
Run this calculation against your own monthly card turnover to see the real-dollar impact. For businesses processing higher volumes, the 0.2% difference compounds significantly.
POS Software Depth
For simple product catalogues and checkout, Zeller POS Lite and Square's free POS app are broadly comparable — both handle basic inventory, sales processing, and reporting.
For restaurants, appointment-based businesses, or multichannel retailers, Square's specialised POS apps offer significantly more native functionality:
- Table management and course firing for restaurants
- Online booking and automated reminders for service businesses
- Advanced inventory and vendor management for retail
These features are built in, without requiring third-party integrations—giving Square the edge for complex operations.
Cash Flow and Banking
Zeller's advantage:
- Free Transaction Account and same-morning payouts are uniquely useful for businesses without an existing business bank account
- Corporate expense cards for staff simplify expense management
- All-in-one financial ecosystem reduces admin overhead
Square's advantage:
- Instant payout feature (1.5% fee) is the only option in Australia for truly same-day bank deposits
- Better for businesses that need speed to a bank account rather than a separate business account
Online and Ecommerce
Square is the clear winner for any business selling online:
- Built-in online store
- Ecommerce platform integrations (Wix, OpenCart)
- QR code ordering
- Gift cards
Zeller's remote payment tools (invoicing, virtual terminal, payment links) handle one-off remote transactions well, but fall short for businesses with a real online sales channel.
When Both May Fall Short
Neither platform is built for the complexity that specialty retailers deal with daily. If your business is a garden centre, pet supply shop, outdoor sporting goods store, or farm market and you need:
- Advanced inventory management (seasonal stock, variable units of measure, bulk/weight-based products)
- Customer loyalty programs with tiered rewards
- Multi-location support with centralised inventory and consolidated reporting
- Robust margin reporting by category and vendor performance analytics
Both Zeller and Square will likely leave gaps. A purpose-built retail POS — like NCR Counterpoint, available through AMS Retail Solutions — is built around these workflows from the ground up, not bolted on as an afterthought.
Choose Zeller If:
- You want the lowest transaction rate (1.4%)
- You need a free business Transaction Account and Mastercard
- You operate a mobile or simple retail setup
- You don't sell online or need advanced POS features
- You want 24/7 customer support included
Choose Square If:
- You run a restaurant, hospitality business, or appointment-based service
- You need specialised POS software without third-party integrations
- You sell online or want to build an ecommerce channel
- You need instant payouts (even at 1.5% fee)
- You want to scale from a basic reader to a full register over time
Conclusion
Zeller and Square serve different business profiles well. Zeller suits merchants who want the lowest transaction rate, a simple checkout, and built-in banking without the overhead of extra software. Square suits those who want a single platform that scales from a card reader to a full POS ecosystem with ecommerce, loyalty, and industry-specific tools.
If neither system fully meets your needs—especially if you run a specialty retail business with complex inventory, multi-location operations, or specific reporting requirements—it may be worth exploring a dedicated retail POS solution built for the way you actually operate. For specialty retailers, systems like NCR Counterpoint offer the depth and customization that entry-level POS solutions can't match.
Frequently Asked Questions
How much does Zeller charge per transaction?
Zeller charges a flat 1.4% for chip and tap card transactions (including GST), 1.7% for keyed/manual entry, and 1.75% + $0.25 for virtual terminal and payment link transactions. There are no monthly fees on top of transaction charges.
What is Zeller POS and how does it work?
Zeller POS (called POS Lite) is built into the Zeller Terminal 2 and the Zeller App. It allows merchants to manage a product library, process sales, apply discounts, and accept card payments—all from the terminal or smartphone, without a separate POS subscription.
Is Zeller easy to set up and use?
Setup involves a short online registration (around 5 minutes), with most simple businesses verified immediately. The terminals are plug-and-play and the dashboard is intuitive, making it accessible even for merchants with no technical background.
Is Zeller Pay safe?
Zeller uses bank-grade encryption and security protocols for all transactions. It is regulated as a financial services provider in Australia (AFSL No. 534281), and the Zeller Transaction Account and Mastercard are protected under standard financial services compliance requirements.
What are the benefits of using Zeller?
Key advantages for small businesses include:
- 1.4% flat transaction rate with no monthly fee
- Free business Transaction Account and Mastercard with every terminal
- Same-morning payouts, Tap to Pay on smartphones, and 24/7 customer support
Which is better for retail businesses, Zeller or Square?
Square's retail POS software offers slightly more native features for product management and reporting, while Zeller's lower rate suits cost-conscious retailers with simpler needs. Specialty retailers with complex inventory or loyalty program requirements will find both platforms fall short — a dedicated retail POS solution like NCR Counterpoint is built to handle that depth.
