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If you run an online or retail store, you need a small business credit card processor that will let you accept credit card payments as well as debit cards and other payment types. Small businesses sometimes have trouble choosing between two of the biggest names in the industry: Stripe and Square.
Stripe and Square both offer a single merchant account and allow you to accept payments through online point-of-sale (POS) stations or portals. Both services come with unique benefits and have different advantages and downsides.
With that in mind, let’s take a closer look at Stripe and Square. This comparison page should help you determine which payment processor best fits your business needs.
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Stripe payment processing offers reasonably low rates and a variety of mobile-focused and online-focused tools, including the following:
In contrast, Square focuses on providing hardware POS systems for brick-and-mortar businesses or larger online enterprises. Many business owners find Square a little easier to jump into and get working immediately, but it lacks Stripe’s payment versatility.
Similarities | Differences |
---|---|
They charge the same for online payments. | Stripe is better for developers, and Square is better for those without coding experience. |
They offer similar hardware and POS services. | Square offers better POS hardware and solutions, while Stripe is better for online stores. |
They both integrate with third-party tools. | Stripe is better overall for integrating with third-party apps. |
They both offer a variety of customer support channels. | Square is easier to use overall. |
Square is one of the best POS systems for retail stores and restaurants. Its retail POS plans include an online store so that you can also sell your products online.
Stripe is a versatile and easy-to-use online payment service that gives your customers a speedy and convenient checkout experience. It offers a dedicated POS terminal and a handheld terminal for multiple credit card readers, with integrated readers available as an add-on.
But Stripe’s real focus is the online space. It’s a perfect solution for businesses that conduct international e-commerce or that are mostly or entirely online. Its online payment tools make it great for accepting various currencies from all around the world.
Stripe may also be a better choice if you have an in-house developer who can make the payment processor work for you. The company provides extensive documentation and tutorials to speed things along.
These are a few of Stripe’s primary benefits:
Square is another big name in POS and payment solutions for businesses, and for a good reason: It’s been a dominant market force since 2009. It’s one of the best choices for small businesses thanks to its excellent POS tools and hardware solutions.
Square is also easy for employees to use, featuring quality out-of-the-box business management and employee management tools. No developer experience is necessary to use Square, and it can help you manage your company and your customer base relatively quickly.
However, Square isn’t quite as versatile in terms of accepted currencies. On the plus side, Square is a little cheaper if you need a POS hardware terminal, since you get your first one for free when you sign up.
These are some of Square’s main benefits:
Read our in-depth Square review for more information about its POS system and services.
Still not sure which of the two payment processors you should choose? Let’s break down the major features of Stripe and Square to see which software has the advantage.
Plans | Square |
---|---|
Pricing | Square |
Features | Square |
Ease of use | Square |
Integrations | Stripe |
Support | Stripe |
Employee self-service | Square |
Additional services | Tie |
The Customized plan lets you design a custom package for your business and choose precisely what you want to pay for. The Customized plan may be a better choice for larger businesses with many international customers.
The Performance plan is $26 per month and allows you to accept PayPal purchases. It has additional features like abandoned cart tools, advanced reporting tools and product reviews.
The Premium plan is a little pricier at $72 per month, but it has lower credit card processing fees and discounted shipping. You’ll also be able to provide your customers with real-time shipping information. This plan is designed for larger businesses that need advanced features.
In-person credit card processing costs 2.7% plus 5 cents per credit card charge. International cards are more expensive, with another 1% processing fee for either type of credit card payment above.
Stripe doesn’t charge any monthly fees, and there aren’t extra charges if you accept mobile payment options like Google Pay or Apple Pay. But it does charge a $15 disputed payment fee if you ever have an issue with chargebacks.
The first Stripe card reader you buy is a $59 flat fee. Stripe does offer a slightly cheaper POS terminal than Square, at $249.
Square is a little cheaper if you use it for in-person credit card payments. That fee is just 2.6% plus 10 cents per transaction. However, if you want to build an e-commerce store using Square, you need a paid plan and will likely incur a monthly fee.
Square gives each customer their first card reader for free. An additional card reader costs $10. POS terminals start at $299, which is a little more expensive than what Stripe charges.
On top of that, financial reporting tools are built into Stripe’s plans, along with customer reporting tools if you sign up for Stripe Sigma. The software easily integrates with QuickBooks and includes features like invoice customization and payment requests.
If you build an online store with Square Online, you’ll also receive customizable website themes, an integrated mobile app, and a free domain name for a year. Square offers POS software, whereas Stripe does not.
Both Stripe and Square could be excellent choices for your small business. However, the best option depends on your payment processing and business needs.
Choose Stripe if these statements are true:
Choose Square if these statements are true:
The primary difference between Stripe and Square is the type of business these companies serve. Stripe has a host of online payment tools and is clearly designed for online businesses. Square is better for brick-and-mortar retailers that need quality POS hardware, like credit card readers or terminals.
Yes, but primarily for small businesses that do most of their sales online. It’s also a better choice for small businesses with an in-house web developer who can handle an in-depth setup.
Stripe takes 2.9% plus 30 cents for each successful credit card transaction.
Square also takes 2.9% plus 30 cents for each successful credit card transaction.