Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Stripe vs. Square Credit Card Processing Comparison
Stripe and Square are excellent payment processing options for small businesses. Here's how they compare.
Stripe and Square are among the best credit card processors that small businesses should consider. We’ve researched both services to help you compare them side by side and determine if one or the other would be the ideal payment processing solution for your company.
Searching for a credit card processor and not sure where to start? Tell us a little more about your business and get customized quotes from qualified providers.
Stripe vs. Square Highlights
Criteria
Stripe
Square
Best for
E-commerce businesses and web developers
Brick-and-mortar and multichannel businesses
Core pricing model
Flat-rate pricing; no monthly fees, setup fees or long-term contracts
Free, Plus ($29 per month) and Premium (custom price) plans
Security
PCI-compliant payment processing
Built-in fraud prevention tools through Stripe Radar
Automatic card account updater
Identity verification tools available as an add-on
PCI-compliant
All transactions on card readers and POS systems are tokenized
Two-step verification and employee permissions on merchant side
Proactive fraud protection with machine learning
Software
Stripe Checkout and Payment Links
Subscription billing and invoicing tools
Highly customizable payment workflows through APIs
Multichannel sales oversight
Industry-specific software for restaurants, retail and appointment-based businesses
Hundreds of integrations, including QuickBooks, NetSuite and Amazon Web Services
Hundreds, including QuickBooks, Wix and DoorDash
Customer service
24/7 phone, email and live chat support
Extensive documentation and API references
Developer Discord community
Phone and chat support Monday to Friday, 6 a.m. to 6 p.m. Pacific time
24/7 phone support for premium plans
Online support center
In-app support
Online seller community
Approval and setup
Businesses can start accepting payments quickly with Payment Links and Stripe Checkout
High-risk businesses may not qualify
Advanced customizations may require developer assistance
Easy application process
High rate of approval except for high-risk businesses
Easy website and brick-and-mortar setup
Who is Stripe for?
Stripe is the ideal credit card processor for:
E-commerce businesses that want flexible online payment processing.
Businesses that need customizable checkout experiences and extensive integration options.
Companies that sell internationally and want multicurrency support and local payment methods.
Subscription-based businesses, marketplaces and other companies with recurring payment needs.
Check out our comprehensive Stripe review for a detailed look at Stripe’s features and processing options.
Who is Square for?
Square is a credit card processor best suited to:
Brick-and-mortar stores.
Multichannel businesses.
Companies seeking an easy-to-use, all-in-one POS solution with integrated hardware and industry-specific software.
Retail, restaurants and service-based businesses.
Read our in-depth review of Square to learn more about this vendor’s features and capabilities.
Did You Know?
Besides traditional credit card processing, Square offers a service called Square Online that provides free web hosting for companies that want to set up an online store. It includes a free SSL certificate and a website builder with SEO tools.
Stripe vs. Square Service Comparison
Plans and Pricing
Stripe
Stripe keeps pricing relatively simple. There are no monthly fees, setup fees or long-term contracts on Stripe’s standard pricing. Instead, businesses pay transaction-based fees when they process payments, with additional charges applying only to certain payment types and optional products.
Stripe includes a robust set of payment tools and business features, including:
Stripe Checkout and Payment Links for online payments
Support for more than 100 payment methods
Payments in more than 135 currencies and local payment methods
Subscription billing, invoicing and recurring payments
Extensive APIs and developer tools for customization
Real-time reporting and analytics
Stripe’s standard pricing includes the following:
Type of charge
Cost per transaction
Online payments
Domestic cards: 2.9% plus 30 cents
International cards: Add 1.5%
Currency conversion: Add 1%
In-person payments
Domestic cards: 2.7% plus 5 cents
International cards: Add 1.5%
Tap to Pay: Add 10 cents per authorization
Manually entered cards
3.4% plus 30 cents
ACH Direct Debit
0.8%, capped at $5
Digital wallets
Same pricing as online card transactions
Invoicing
Add 0.4%
Businesses with high processing volume or unique payment requirements may qualify for custom pricing.
Stripe’s payment elements help businesses create customized checkout experiences while supporting multiple payment methods. Source: Stripe
FYI
Stripe's invoicing tool makes it easy to accept recurring payments and scheduled billing, making it a great option for companies that operate on a subscription business model.
Square
Square offers several plans to accommodate businesses of varying sizes and needs. Its free plan, which is an excellent option for startups or companies with low sales volumes, impressed us.
Here’s an overview of Square’s plans:
Service plan
Monthly fee
Per-transaction rates
Features
Free
$0
In-person transactions: 2.6% plus 10 cents
Online transactions: 2.9% plus 30 cents
Manual transactions: 3.5% plus 15 cents
Unlimited products
Option to sell on Instagram and Facebook
Pickup, delivery and shipping tools
Self-serve ordering
SEO tools
Sync with Square POS
Plus
$29
In-person transactions: 2.6% plus 10 cents
Online transactions: 2.9% plus 30 cents
Manual transactions: 3.5% plus 15 cents
Everything in the Free plan, plus:
PayPal acceptance
Tools specific to restaurants, retail or appointment-based businesses
Before committing to a processor, you should understand how credit card processing fees work for cards and digital payment methods, so you know precisely what you're paying for.
Best for Pricing
Stripe
Stripe wins this round because we like that the processor doesn't have monthly fees and has a slightly lower manual-keyed rate. However, Square is appealing for in-person high-volume businesses with its Plus plan.
Payment Processing
Stripe
Stripe stands out for its flexible payment tools, broad payment method support and developer-friendly platform:
Flexible checkout options: Stripe Checkout, Payment Links and customizable APIs support a wide range of business needs.
Broad payment method support: Accept more than 100 payment methods, including cards, digital wallets, bank payments and buy now, pay later options.
In-person payment tools: Stripe Terminal devices and Tap to Pay support help businesses accept card-present transactions.
Flexible payouts: Standard T+2 payouts after the initial payout period, with Instant Payouts available for eligible businesses.
Chargeback protection: Stripe’s $15 dispute fee is refunded if the dispute is resolved in your favor.
Square
We like Square for payment processing because of its:
Omnichannel focus: Strong for both online and in-person sales; integrates with POS
Diverse acceptance: All major credit cards, Apple Pay, Google Pay, Cash App, Samsung Pay, ACH for invoices
Virtual terminal: Available for remote sales
Speedy payouts: Funds in Square Checking, then transfer to bank within one day (or instantly for a fee)
No chargeback fee: Square represents you in disputes without an upfront fee
FYI
Square has no chargeback fees and will represent you with the issuing bank in a dispute.
Use your Square Checking account to pay bills, utilities and other expenses. Source: Square
Best for Payment Processing
Square
Square edges out Stripe in the payment processing category because it offers customers a greater variety of payment options. Square also boasts faster standard payouts at no extra cost, plus no chargeback fees. However, Stripe is still appealing because it transfers funds automatically.
Security
Stripe
Stripe includes several in-person and online payment security and fraud-prevention tools, including:
PCI-compliant payment processing: Stripe helps businesses securely process card payments while reducing PCI compliance burdens.
3D Secure authentication: Additional cardholder verification helps reduce fraud and chargeback risk for online transactions.
Radar fraud protection: Stripe’s machine-learning fraud detection tools analyze transactions and help identify potentially fraudulent activity.
Card account updater: Automatically updates expired or replaced card information to help reduce failed payments.
Identity verification tools: Businesses can optionally verify customer identities and validate government-issued IDs through Stripe Identity.
Stripe’s online identity verification technology can help prevent payment fraud. Source: Stripe
Square
Square’s notable security features include:
PCI compliance: Square is PCI-compliant, encrypting customer payment information end-to-end. This ensures that none of your customers’ private information is stored on your servers or devices.
Fraud prevention: Square’s card readers are EMV-compliant, which means they accept chips. This can help reduce fraud incidents. Square also uses ML models to identify suspicious transactions.
Best for Security
Stripe
We like that both processors prioritize payment security and credit card fraud prevention. However, Stripe's combination of PCI-compliant payment processing, Radar fraud protection, 3D Secure authentication and optional identity verification tools gives businesses more ways to reduce risk and prevent fraudulent transactions.
Software
Stripe
Highly customizable: Tailor payment experiences with APIs, Stripe Elements and other developer tools.
E-commerce and subscription tools: Stripe Checkout, Payment Links, subscription billing, invoicing and reporting.
Integrations: Hundreds of integrations, including QuickBooks, Amazon Web Services and NetSuite.
Mobile app: Monitor payments, customers, invoices and subscriptions from anywhere.
Square
All-in-one ecosystem: Multichannel sales oversight; handles various transaction types
Industry-specific POS software: For retail, restaurants and appointment-based businesses
CRM functionality: Link purchases to customer profiles and inventory
Website integration: Easy no-code setup via Square Checkout; developer tools available
Mobile app: Process transactions on the go
Best for Software
Square
Square's software wins this round. We like that it provides industry-specific POS software and tools for inventory tracking and staff and customer management. It’s also easier to use for non-technical users than Stripe's platform.
Hardware
Stripe
Card readers: Stripe offers several certified payment devices, including the Stripe Reader M2 ($59), Stripe Reader S700 ($299) and Stripe Reader S710 ($299).
Tap to Pay: Businesses can accept contactless payments on compatible iOS and Android devices for an additional 10 cents per authorization.
Accessories: Optional accessories are available, including docks, mounts and protective cases for supported hardware.
Square
Square Reader for Magstripe: Easily plugs into Android and iOS devices, but only accepts swipe credit and debit cards, not chip or near-field communication (NFC) cards. First Square Reader for Magstripe is free.
Square Reader for Contactless & Chip: Connects to your mobile phone or tablet via Bluetooth. It can accept NFC mobile payments like Apple Pay and Google Pay, as well as credit and debit cards. It costs $49.
Square Terminal: Connects to Square’s software via Bluetooth and can accept payments by swiping, tapping or inserting cards. It can also print receipts. Cost is $299.
POS Register: The POS Register ($799) is for permanent locations. It has a cashier-facing screen and a customer-facing payment interface that can accept credit and debit cards. Use it as a standalone device or combine it with accessories like a receipt printer ($299), handheld scanner ($119) and cash drawer ($249).
Square’s POS register has an employee-facing screen and a customer-facing touchscreen and is preloaded with POS software. Source: Square
Best Hardware
Square
Square is the clear winner here because it offers a variety of sleekly designed and functional hardware options. Stripe has minimal hardware options and no POS solutions.
Integrations
Stripe
Software integrations: Stripe integrates with hundreds of applications, including QuickBooks, NetSuite, Amazon Web Services and other major business platforms.
Developer tools: Stripe provides APIs, testing tools and extensive documentation for businesses that want to customize payment experiences and automate workflows. Advanced customizations may require technical expertise.
Square
Square offers hundreds of integrations to enhance the service’s functionality, such as GoDaddy, Mailchimp and Instagram. You’ll also find industry-specific integrations like the following:
Retail: Shopventory, WooCommerce, BigCommerce, Wix and Shippo
Beauty and personal care: Square Appointments, Jotform, Cognito Forms and IntakeQ
Restaurants: Square KDS, Postmates, Kyoo, Homebase and QuickBooks Time
Best Integrations
Square
Square wins this category due to the breadth of its integrations and its industry-specific options, making it more versatile for a broader range of small businesses. However, Stripe is a better choice for businesses willing to work with developers for deeper customization.
Customer Service
Stripe
24/7 support: Phone, live chat and email support.
Self-service resources: Searchable documentation, setup guides, API references, troubleshooting articles and FAQs.
Developer community: Access to Stripe’s developer Discord server and technical resources.
Advanced support options: Managed support plans and technical account management are available for businesses with more complex needs.
Square
Standard phone/chat hours: Monday to Friday, 6 a.m. to 6 p.m. PT
24/7 phone support: Available for Premium subscribers
Additional resources: Online support center, in-app support, seller community
Best Customer Service
Stripe
For customer service, Stripe's 24/7 support for all users makes it the clear winner. We also found Square's customer service record to be inconsistent.
Approval and Setup
Stripe
Approval process: Businesses can sign up online and begin accepting payments quickly using Payment Links, Stripe Checkout and other prebuilt tools. As a payment aggregator, Stripe generally offers a streamlined onboarding process, although some businesses may be subject to additional review.
No-code options: Stripe Checkout and Payment Links allow businesses to accept payments without coding or developer assistance, making it easy to get started.
Customization options: Businesses that need more control can use Stripe’s APIs and developer tools to build customized payment experiences, automate workflows and integrate Stripe with other business systems.
Stripe enables merchants to generate payment links to share with customers. Source: Stripe
Square
Approval process: The straightforward online application process can be completed quickly. However, like Stripe, Square is not an option for merchants in high-risk industries or businesses like membership clubs and direct marketing firms.
Setup: Once approved, setting up Square is relatively easy. The implementation time will depend on the functionality you require.
Easy integration options: Services like Square Checkout don’t require coding and are quick and seamless to set up. Prebuilt third-party solutions are also easy to set up. However, if your main revenue stream is online sales, you will likely need a web developer to get everything running smoothly.
Best for Approval and Setup
Square
Square wins here because it provides better integration options for non-technical merchants, particularly for in-person and basic online needs. This makes the implementation process much smoother.
E-commerce businesses: Stripe’s flexible checkout tools, broad payment method support and extensive integrations make it a strong fit for online sellers.
Businesses that need customization: Companies can start with no-code tools like Payment Links and Stripe Checkout, then use APIs and developer tools to create more tailored payment experiences.
Subscription-based businesses and marketplaces: Products like Stripe Billing and Connect support recurring payments and complex payment workflows.
International businesses: Stripe supports payments in more than 135 currencies and offers local payment methods for customers around the world.
Businesses that want transparent pricing: Stripe’s flat-rate pricing model has no monthly fees, setup costs or long-term contracts.
Square is best for:
Brick-and-mortar and multichannel businesses: Its integrated POS system, hardware and industry-specific software are ideal for physical locations.
Non-technical business owners: Easy setup, an intuitive interface and no-code options make Square accessible without developer expertise.
Startups and low-volume businesses: The free plan and affordable hardware are attractive entry points.
Retail, restaurant and service businesses: Dedicated software features simplify operations for companies in these sectors.
Companies prioritizing simplicity and all-in-one solutions: Users who prefer a unified system for payments, inventory, staff and customer management will find Square extremely valuable.
FAQs
There is a monthly fee for Square, depending on the plan you choose. If you don't want the free credit card processing package, in which you only pay transaction fees, you'll have to pay a monthly fee for one of the paid plans. The Plus package starts at $29 per month.
No, you cannot leave money in your Stripe account long term. Stripe automatically transfers sales revenue into your linked bank account every two days. You can manually fund your Stripe balance to cover refunds or chargebacks, but it’s not designed as a holding account.
Yes, Amazon accepts Stripe. Stripe is an Amazon partner and processes a significant portion of Amazon's transactions.
Whether Stripe or Square is better for a retail business depends on whether it is an e-commerce company or brick-and-mortar. If your business operates mostly online, Stripe is a better choice. Square provides attractive customer-facing equipment and an outstanding POS system for in-person sales.
Square generally offers lower rates for in-person card-present transactions, while Stripe tends to be more cost-effective for manually entered payments. They have comparable fees for e-commerce transactions.
Jennifer Dublino is an experienced entrepreneur and astute marketing strategist. With over three decades of industry experience, she has been a guiding force for many businesses, offering invaluable expertise in market research, strategic planning, budget allocation, lead generation and beyond. Earlier in her career, Dublino established, nurtured and successfully sold her own marketing firm.
At business.com, Dublino covers customer retention and relationships, pricing strategies and business growth.
Dublino, who has a bachelor's degree in business administration and an MBA in marketing and finance, also served as the chief operating officer of the Scent Marketing Institute, showcasing her ability to navigate diverse sectors within the marketing landscape. Over the years, Dublino has amassed a comprehensive understanding of business operations across a wide array of areas, ranging from credit card processing to compensation management. Her insights and expertise have earned her recognition, with her contributions quoted in reputable publications such as Reuters, Adweek, AdAge and others.
