Stax vs. Square: Credit Card Processor Comparison

Stax vs. Square Highlights

Stax and Square help businesses accept credit card payments as well as digital payment methods like mobile wallets and ACH (direct drafts from customer bank accounts). Both vendors provide payment processing hardware, including card readers and POS systems, and integrate with various software applications. However, their distinct differences may make one platform a better solution for your company’s sales needs than the other.

Who Is Stax For? 

Stax is ideal for established and high-processing-volume businesses because of its low wholesale processing rates and all-inclusive software features. We like that it provides transparent pricing and a slew of features that make payment processing easy and accessible for businesses. We were impressed that it only charges a small per-transaction fee beyond the established interchange rates credit card companies charge. Stax also provides an excellent mobile app for iOS and Android that allows for in-person, online, and over-the-phone payment processing. 

Read our in-depth Stax Payments review to learn more about this vendor’s features and capabilities.

Who Is Square For? 

Square’s feature-full free subscription plan makes it ideally suited to low-volume or seasonal businesses. We were impressed by the functionality and value of Square’s free tier. Higher-level paid tiers add additional capabilities for growing and higher-volume businesses. We also liked Square’s functional and attractive POS hardware, which makes the platform an excellent choice for brick-and-mortar retailers and restaurants. It’s also ideal for companies that want one software solution to manage their business and businesses that use recurring billing or scheduled payments for memberships or subscriptions. 

Read our Square review for more details about its features and use cases.

Stax vs. Square Service Comparisons

Here’s a closer look at each provider’s services and how they stack up against each other. 

Plans and Pricing

Stax

Stax uses processing volume to determine monthly fees. Here are the plans it currently advertises on its website:

Optional add-ons include ACH processing, a one-click shopping cart, digital gift cards, next-day funding and more. Note that the vendor imposes a $25 chargeback fee for disputed transactions. 

Square

We were impressed that Square’s basic plan has no monthly fee. Higher-level paid tiers add additional functionality. We also loved that Square doesn’t impose chargeback fees — a rarity in the industry.

Pricing is as follows (prices for higher-level plans reflect annual billing; you’ll pay more for monthly billing):

Additionally, Square offers add-ons that can help your business run more smoothly: 

• Email marketing add-on: Starting at $15 monthly, this add-on allows you to send unlimited emails, automate email collection, redeem coupons, automate email marketing campaigns, and more.
• Payroll add-on: At $35 plus $6 per employee per month, this option gives you unlimited monthly pay runs for employees and contractors.
• Text message marketing add-on: At $10 per month plus messaging rates, you can automate text message marketing campaigns and add images.
• Loyalty program: Square can help you build a customer loyalty program. Rates start at $45 for zero to 500 loyalty visits.

Payment Processing

Stax

• Multiple payment types accepted: In regard to credit card processing and digital payment processing, Stax allows you to accept all major credit and debit cards (swipe, dip and tap), Apple Pay, Google Pay, PayPal, Venmo, Pay Later and more. ACH processing is available as an add-on.
• Multiple payment methods: Accept payments online, in person, via text, through invoices, hosted payment pages and more.
• Low processing rates: Stax processes a wide variety of payments at an unprecedented low processing rate. It’s the only payment processor we reviewed that passes along wholesale interchange rates to its merchants with no markup.
• Quick payouts: Stax’s quick payouts are another benefit. Many other processors take one to three business days to transfer your money into your bank account. However, with Stax, your money is deposited as soon as the following business day. If you need access to your money immediately, you can get an instant transfer for an additional fee.

Square

• Multiple payment types accepted: In addition to major credit and debit cards, Square allows you to accept Apple Pay, Google Pay, Samsung Pay, Cash App and ACH for invoices.
• Multiple payment methods: Like Stax, Square allows merchants to accept payments in various ways, such as via an e-commerce payment page, invoicing, recurring payments, hosted payment pages, virtual terminals and in person with readers and point-of-sale (POS) systems.
• Payouts: You can either keep your sales revenue in your Square Checking account or transfer it to another bank account within one business day (or immediately for an additional fee).

Security

Stax

• PCI compliance: Stax is a Level 1 PCI Service Provider. While Stax is PCI compliant, as the merchant, you are responsible for PCI compliance on your end. Stax requires its merchants to complete and submit a PCI compliance self-assessment questionnaire annually so it stays top of mind. While Stax does not have its own proprietary hardware, the equipment it sells and is compatible with is PCI- and EMV-compliant.
• E-commerce security: If you have an e-commerce site, you can add a secure payment system. PCI-compliant software encrypts and tokenizes cardholder information so it’s difficult for would-be thieves to intercept and use. This system cuts down on credit card fraud and chargebacks.

Square

• PCI compliance: Square provides end-to-end encryption of customers’ payment information, helping ensure PCI compliance.
• Fraud prevention: Square also uses machine learning models to identify and examine potentially fraudulent transactions. 

Software

Stax

Stax provides customers with the same features regardless of processing volume. 

• Software features: Stax’s software features include a dashboard, analytics, digital invoicing (which is frequently an additional charge with other processors), Text2Pay mobile payments, online payment capabilities, recurring invoicing, scheduled payments (also usually an upcharge from other companies), automatic updates of stored cards, and one-click shopping cart setup with catalog management.
• Interface and reports: Stax’s dashboard interface is easy to use; its reports provide vital information to help you make better business decisions.
• Paid add-ons: Stax charges for add-on services like digital gift cards, custom-branded invoices, digital receipts and website payments, ACH processing and terminal protection.

Square

Square’s intuitive software interface has modules that can help you manage your entire business.

• Financial: The financial module accepts customer payments, creates invoices, manages payroll, and tracks financial metrics.
• Marketing: The marketing module helps you with email and text marketing and gives you analytics to track and tweak your campaigns.
• Square Team Management: Square Team Management has time tracking, tip pooling, sales commission management and task management.
• Customer experience tools: Tools like Square Loyalty, Appointment Scheduling and Customer Directory help you improve your customer experience.
• E-commerce tools: For e-commerce, you may need a developer to integrate Square with your website. If you don’t have a developer or don’t want to spend the money, you can use Square Checkout to send customers to a Square-hosted payment page.

Hardware

Stax

Stax does not have its own proprietary equipment. Instead, it resells hardware from other companies. Below is an overview of the hardware it offers. 

• Clover equipment: Stax resells the following Clover items:
  • Clover Flex LTE or Wi-Fi: This handheld POS system has a 5-inch LCD color touch screen and accepts chip, swipe and tap payments.
  • Clover Mini LTE: This small POS system has a 7-inch LCD color touch screen and can accept chip, swipe and tap payments.
  • Clover Station Solo: This is a more traditional POS system, with a 14-inch HD tiltable display, a cash drawer and a receipt printer. It accepts chip, swipe and tap payments.
  • Clover Station Duo: This terminal includes everything in the Clover Station Solo, plus a customer-facing 7-inch touch screen. It accepts chip, swipe and tap payments.

Stax hardware options include the Clover Station Solo, which acts as a POS system. Source: Clover

• Dejavoo QD series: This series includes different Android terminals with 4-inch to 5.5-inch LCD touch screens. Devices can accept chip, swipe and tap payments.

Stax can provide you with a handheld Dejavoo QD4 Desktop Android reader for mobile payments. Source: Dejavoo

• SimpleSwipe B250 reader: This iOS and Android Bluetooth mobile reader supports swipe, chip and tap payments, along with Apple Pay and Google Pay.

Square

Square designs and builds its own proprietary payment processing equipment:

• Square Reader: The small and wireless Square Reader allows you to accept payments on the go by connecting to a mobile device via Bluetooth. The Square Reader supports chip cards, NFC payments and digital wallets. 

The Square Reader can be used by different Square accounts and locations. Source: Square

• Square Terminal: The Square Terminal connects to your POS system via Bluetooth. It accepts tap, chip and debit with PIN payments, as well as digital wallets like Apple Pay.

The Square Terminal accepts chip and NFC payments. Source: Square 

• Square POS register: This sleek and full-featured POS register has a cashier-facing screen and a customer-facing touch screen. POS software is already loaded; you can accept all major credit cards by tapping or inserting them. It also supports PIN entry for debit cards.

The Square POS register is a fully integrated POS system with a customer-facing display. Source: Square

Integrations

Stax

Stax makes it easy to set up an online store or integrate with e-commerce platforms, including BigCommerce, Magento, Shopify or WooCommerce — even if you aren’t particularly tech-savvy. For more complex integrations that require a developer, Stax provides an API. 

In addition, Stax has built-in integrations with the following:

• QuickBooks
• Salesforce 
• Slack
• HubSpot
• Xero
• MS Teams
• Wave
• Zoho
• Mailchimp
• Calendly
• Google Docs
• Facebook ads
• Asana
• Atlassian
• Workona
• Wrike
• monday.com

Square

Square shines when it comes to software integrations. Its app marketplace lists all apps the platform can “talk to.” Additionally, Square Bridge allows merchants to tie their Square payment processing into Oracle NetSuite and Microsoft Dynamics 365 Business Central. 

Square app integrations include the following: 

• Shopventory 
• WooCommerce
• BigCommerce 
• Wix 
• Shippo 
• Postmates 
• QuickBooks and QuickBooks Time 
• GoDaddy 
• Mailchimp 
• Gift Up 
• KioskBuddy
• Bookkeep
• KIOS
• Trunk
• Local Line
• Loopz Gift Cards
• Maralytics
• Poptin
• Trustpilot
• ZipRecruiter 
• TapMango

Customer Service

Stax

Generally, customers rave about Stax’s customer support. Stax provides customer service by phone, fax, email or online with live chat and its “Knowledge Base.” Customer service hours across all channels are 8:30 a.m. to 8 p.m. ET.

Square

Our research revealed that Square’s customer service record is mixed. Square supports its merchants by phone (Monday through Friday, 6 a.m. to 6 p.m. PT), email, live chat and social media. It also has help available online in its support center and on YouTube. We like that customers can use live customer service chat via the Square POS app, which can be convenient.

Approval and Setup

Stax

• Approval process: Stax’s whole application process through to account activation takes about two weeks, so you must plan ahead. Expect to find out if your application was approved within 48 hours.
• Application: The application itself is online and quick to complete. You’ll need your business license, Social Security number and tax ID, as well as a voided check and processing statements if you’re switching from another processor. You may also be asked for your business bank account information and financial statements.
• Equipment: Once you order your equipment, it is sent out for arrival within two days.

Square

• Approval process: Most accounts are approved within two business days, but verifying bank accounts can take up to four business days.
• Application: Square’s online application should only take a few minutes to complete. You’ll need your Social Security number or Individual Taxpayer Identification Number, legal name, date of birth, mailing address, corporate email address, and bank account information. You may also need a picture of your government-issued photo ID.
• Setup: To complete setup, order any hardware you need and download the Square App. Set up your account in the Square App, adding all your business details. 

Stax vs. Square Summary

Square: Best for Brick-and-Mortar Retailers & Restaurants 

Square is a smart pick for brick-and-mortar retailers and restaurants. It comes with a number of attractive customer-facing hardware, POS software features and loyalty program software that can help these types of businesses meet (or exceed) their goals. Plus, it offers a quick, easy application and approval process that lets them get started right away.

Stax: Best for High-Volume Businesses

Stax is a solid choice for high-volume businesses that want to keep more of their hard earned revenue. Not only does the platform offer a competitive processing rate, but it also has a reputation for excellent customer service. We are impressed it provides some merchants with a dedicated account manager who can help troubleshoot issues and come to resolutions quickly. In addition, Stax includes a free, cloud-based terminal and doesn’t require long-term contracts.