ARLIResearch
SQUARE API · BREAKDOWN FOR LOCAL

Square API:
cheaper than Toast, but it also gives away more

What is open to us at Square, how it differs structurally from Toast, where the data boundary lies, and how this maps onto the four layers of LOCAL.

VERIFIED AGAINST SQUARE DOCUMENTATION AND OPEN SOURCES · OCTOBER 2026 · 12 SECTIONS
Verdict in three points
  1. Square has better access terms than Toast, and that is not a small thing. The APIs are free, the sandbox exists and is free, write access is available immediately under approved permissions, and above all: the seller authorizes our app via OAuth instead of handing us the credentials from their own account. We stop depending on the client not taking the key away.
  2. But it also closes our reading layer with its own hands. Square has an official MCP server, hosted by Square itself, with access to the whole API and write access under approved permissions. And on July 1, 2026 Square connected restaurants to ChatGPT and Claude itself: automatically, with no commission, with synchronization of menus, hours and orders. There is nothing to sell as a gateway to Square from either side at once.
  3. Square does not hand over the fourth layer either. There are no tables, restaurant reservations or admission rules in the API; restaurant reservations are covered by third-party apps, and the Bookings API is service appointments, not tables. The outcome is the same as with Toast: the product begins where the API ends, and the choice between platforms is settled by counting registers along our corridor, not by company size.
4.5M+sellers on the platform, across all industries
$0API price: no monthly fee and no per-call fee
Yesofficial MCP server, beta, hosted by Square
OAuththe seller authorizes our app instead of handing over credentials
Sandboxfree, unlimited calls, test accounts

1. Why we are considering Square at all

This is the second-largest player in registers for small venues and the most likely neighbor along the city corridor: among small restaurants Square is strong exactly where we intended to start. The APIs are free, debugging is free, and the sandbox lets us build and test without touching a live restaurant.

MetricValueSource
Sellers on the platformmore than 4.5M across all industriespublic Square materials, 2026
Breakdown by restaurant locationsnot disclosedBlock does not publish its number of locations, unlike Toast
API price0, with no monthly fee and no per-call feeSquare Developer, pricing
What the client pays2.6% + 10-15 cents per transaction, plus a software subscriptionSquare pricing
Square for Restaurants$0-60 per location per monthFree / Plus / Premium pricing tiers
Official MCP serveryes, in beta status, hosted by Square itselfdeveloper.squareup.com/docs/mcp

What these figures do not include

Block does not disclose its number of restaurant locations, unlike Toast. So the statement that there is more Square along our corridor is a hypothesis to be tested by counting registers at specific addresses, not an argument for a decision.

2. Four ways to connect, and all of them are open

Unlike Toast, there is no door here that only the platform can open. For our own work a personal token is enough, for working with clients OAuth is enough: each seller authorizes our app themselves, and we arrive at their door already as a verified app, with a set of requested permissions.

Access methodWho issues itReadWritePriceOur status
Personal access tokenwe issue it ourselves, from the developer console, for our own accountyesyesfreefor our own sandbox and our own tests
OAuth, flow with a secreteach seller authorizes our appyesyesfreeour main path: one app serves many sellers
OAuth, PKCE flowthe same, for public clients without a secretyesyesfreeneeded if we build a mobile app
Listing in App MarketplaceSquare, after approval as an app partneryesyesfree, with a share of partner revenuenot required: we can start without a listing

What this changes compared to Toast

With Toast, access is rented from the client: the credentials sit in their account and they can take them away at any moment. With Square we hold the seller's authorization, we refresh the token, and only compliance with the rules depends on us. This is a fundamentally more stable position for a vendor.

3. What we can actually take

Catalog, orders, inventory, locations, service appointments, staff, customers, payments: almost everything is available both for reading and for writing, under approved permissions. Permissions are requested by scope, so we can take read only and not risk the client's data.

APIWhat is insideRead and writeWhat it gives LOCAL
CatalogItems, variations, modifiers, categories, taxes, discounts, imagesread and write, the ITEMS_READ permission for readingCore layer: what a dish contains and what can be removed
OrdersOrders, checks, line items, payments, sales historyread and writeWhat was actually ordered. Indirectly relevant to rules
InventoryItem stock counts, SOLD and WASTE statesread and write"Is it available today" without a phone call
LocationsSeller locations, addresses, settingsread and writeStable attributes and group coverage
BookingsService appointments: create, change, cancel, search free slotsread and writeServices and scheduled appointments. This is not about restaurant tables, see section 5
LaborShifts, timecards, breaks, wages, tipsread and writeSupporting
Customers, Loyalty, Gift CardsCustomers, groups, loyalty programsread and writeSupporting for our layer
Payments, Invoices, RefundsPayments, invoices, refunds, disputesread and writeNot our topic
WebhooksEvents for catalog, orders, inventory, customers, subscriptionsincoming eventsFreshness: changes arrive on their own

Webhooks are the freshness mechanism

Events for catalog, orders, inventory, customers and subscriptions arrive on their own. For LOCAL what matters is the catalog (an item or a price changed) and inventory. One practical detail from the documentation: a catalog event carries only a timestamp, not what exactly changed, so it needs a separate request for changes within a window. This is one engineer-day of work, but it has to be included in the estimate rather than discovered in week two.

4. The key difference: Square already has its own MCP server

Square has released an official MCP server in beta status: remote, hosted on Square's side, sign-in via OAuth, the seller chooses the permissions themselves. Through three generic tools an agent reaches the whole API: payments, orders, catalog and inventory, customers and loyalty, invoices and subscriptions, service appointments, staff, gift cards. There is also a local launch with one command, with a flag that disables writes, and with a sandbox flag.

Why this is the most important fact in the document

The layer that another report proposed building as a product, Square already gives away itself and for free: with hosting, with a sandbox and with permissions. Plus on July 1, 2026 Square connected restaurants to ChatGPT and Claude itself, with no commission and no setup on the venue's side. So selling a "gateway to Square" is impossible, neither as an access intermediary nor as a unique integration. The product can only live higher up: in rules, confirmations and the language of the answer.

5. Limits and dependencies

PropertySquareToastWhat this means for the choice
Cost of accessfree, the client pays for transactions~$25 per location per month, an estimateSquare has no expense line that needs explaining
Sandboxyes, free, with no call limitsno, production onlyWith Square we can debug without touching a live restaurant
Access scheme for a vendorOAuth: the seller authorizes our appthe client's credentials at their location, the vendor does not authorizeOAuth gives us a client list and removes the question of reselling access
Writeavailable immediately, under approved permissionsonly through partner certificationWith Square an action can be taken without a year of negotiations
Official MCP serveryes, beta, hosted by SquarenoSquare itself closes the gateway layer we intended to sell
Restaurant tables and reservationsno native product, reservations come from third-party appsthe product exists, there is no reservation read access via APINeither one lets us sell this as an answer
Handing data to assistantsSquare itself connected restaurants to ChatGPT and Claude on 01.07.2026there are no native MCP endpointsSquare closes our reading layer with its own hands
ConstraintValueWhat this means in practice
Request limitsnot published, the answer on the official forum: we do not discloseWe build on the X-RateLimit-* headers and exponential backoff. Community estimates differ tenfold, from 10 to 100 requests per second per token
Token lifetime30 days, then refresh via a refresh tokenThe refresh logic must be written from day one, otherwise the integration dies silently
Authorization code5 minutes, single useClient onboarding must be fast, with a retry on failure
Refresh tokensin the flow with a secret they do not expire, in PKCE they are single use and valid for 90 daysThe choice of access scheme determines what happens if a token is lost
Sandboxfree, unlimited calls, test accountsDebugging costs nothing and does not touch live data
Production requirementssome calls require the client to have a Square software subscriptionThe same dependency as with Toast: without the client's subscription part of the data is unavailable
Hosted MCPproduction only, plus a list of allowed clientsFor our own sandbox, run a local server with the SANDBOX=true flag

6. What Square does not have, and that matters more than what it has

What is missingFactConsequence for LOCAL
Restaurant tables and reservations as a productSquare has floor management and a waitlist in the POS, but there is no separate reservation system for restaurants: reservations and the waitlist are covered by third-party apps from the marketplace, connecting to Square orders and customersAs with Toast, the answer "we can seat eight" cannot be taken from the API. The difference is that Square does not even have a native product to demand access from
The Bookings API is not itThe Bookings API covers service appointments: service, staff member, time, free slotsGood for salons and services, not for restaurant tables. Not to be confused
Admission rulesAllergens, diets, private room, deposit, minimum check, time limitsOperational policy, not data. It is assembled by hand with the venue, once, and this is what people pay for
A public estimate of the limitsSquare states directly on the forum that the limits are not documentedYou cannot plan load blindly, you need your own measured curve
Restaurant density by locationBlock does not disclose its number of locations, only 4.5M sellers across all industriesHow many restaurants along our corridor are on Square can only be found by counting, not from reporting

7. The four LOCAL layers against Square's capabilities

four LOCAL layers: Square coverage vs Toast
LOCAL LAYER SQUARE TOAST 4. Perishable a table, gluten free, private room almost none almost none 3. Operational menu, ingredients, stop list, orders full full 2. Stable attributes hours, zones, payment full full 1. Existence the venue exists, address full full the difference between them in the fourth layer is small: neither one gives it away
LOCAL layerExamplesWhat Square givesWho covers itLifetime
1. ExistenceThe venue exists, address, categoryLocations, addresses, settingsSquare and public sourcesyears
2. Stable attributesHours, zones, payment, online ordering hoursLocation settings, catalog, schedulesSquare covers it almost completelymonths
3. Operational factsToday's menu, ingredients, stop list, ordersCatalog with modifiers, inventory, orders, webhookscovers it, and with fresh datadays and hours
4. PerishableTable for eight, gluten free, private room, depositalmost nothingonly people: the owner confirms, we keep a record with a datehours and days

How to read the diagram

The three lower layers are covered by eleven lines of code and one webhook. The fourth is not covered by anything. The difference between Square and Toast in the fourth layer is small: neither gives it away, because it is not data but a person's decision made today. That is exactly why the choice of platform does not decide the fate of the product, it only decides the cost of entry.

8. The economics on this foundation

Line itemValueComment
Access for us$0Square has no API fee. A saving compared to Toast, but there is also no justification left for a price "for access"
Cost at the clienta Square for Restaurants subscription of $0-60 plus a percentage of transactionsOur line item must live on top of that one, not duplicate it
Freshness of layers 1-3almost zero marginal cost, plus webhooksThe same as with Toast, but with free sandbox debugging
Freshness of layer 4person-hoursThis is where our cost sits, and it does not fall with scale as fast
What we charge a group$2 500-5 000 setup plus $79-99 per location per monthOtherwise the budget conversation ends at the first meeting

9. Three scenarios for the first product

  1. A reading layer for a group. We authorize the app with the seller, read the catalog, inventory and locations, subscribe to events. Death: within 60 days no group paid more than zero, because Square gives away the same thing itself, including the official MCP server.
  2. A rules layer on top of reading, our main path. We add allergens, diets, private rooms, deposits, minimum check, late evening. The owner confirms once, we keep a record with a date and an expiry and we are responsible for its freshness. Death: after 20 conversations with named groups not a single pilot is signed for money.
  3. Our own app in the Square marketplace. A listing requires app partner status, five active sellers, a contract and a quality review; the answer on an application arrives within 14 business days. Death: we did not collect five sellers, because we have nothing to sell them except rules, and rules are sold by conversation, not by a listing.

Practically: the second scenario as the product, the first as technical preparation and a way to talk to a venue in its own language, the third only after the second has brought in money.

10. What to verify rather than assume

  1. Count which registers the venues along the first corridor actually use. This determines who we integrate first: Square or Toast.
  2. Test on a live seller what the pair of "catalog plus webhooks" delivers in practice: how many requests one cycle takes and whether it runs into the unpublished limit.
  3. Find out from Square whether there is access to anything in the area of tables and the waitlist besides third-party apps. If not, we remove the promise "we can seat eight" from the plan.
  4. Ask what happens to authorization if a seller switches registers or closes down: how long the token lives and what happens to our records.

11. Square vs Toast: what to choose first

CriterionWinnerWhy
Cost of entrySquareZero against an estimated ~$25 per location per month
DebuggingSquareA free sandbox against production-only at Toast
Stability of accessSquareOAuth on our side, not credentials in the client's account
Right to actSquareWrite is available immediately under permissions, at Toast only through certification
The reading layer as a productneitherSquare gives away its own MCP server itself, Toast has open wrappers available: there is nothing to sell for either
Tables and reservationsneitherToast has the product but no read access; Square does not even have the product
Known market shareToast180 000 locations against an undisclosed number at Block
Who pays for the second half of the conversationbothBoth have ready paying categories that we can slot into

12. Sources

Method and honesty

Everything is taken from Square documentation and open sources, dates are given where they are available. Three things are explicitly marked as estimates or as missing data: request limits (Square does not publish them, community estimates differ tenfold), the number of restaurant locations and market share (Block does not disclose them), and the completeness of the picture of tables and reservations in Square (no native product could be found, the conclusion is drawn from third-party apps and Square help). If the opposite is confirmed, sections five and six must be rewritten.

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