Stripe vs. Square Credit Card Processing Comparison

Stripe vs. Square Highlights

Stripe and Square are third-party payment processors that help businesses accept credit and debit cards and digital payment methods like Apple Pay. Both are Payment Card Industry (PCI)-compliant ― an essential security feature for all merchants. Still, these platforms have distinct differences that may make one or the other more suitable for your business. Here’s an overview of how they compare. 

Who Is Stripe For? 

Stripe is an ideal solution for e-commerce businesses with in-house web developers. Tech-savvy business owners will likely appreciate customizing the platform to their unique needs and taking advantage of its many software integrations. With no monthly fee and fast payouts, Stripe is also well-suited for startups, low-volume businesses and seasonal operations.

In addition, Stripe is a strong option for mobile commerce, subscription-as-a-service businesses, marketplaces and platform-based companies. It has also introduced proprietary credit card reader hardware to appeal to brick-and-mortar businesses, though it remains less competitive in this segment. For a detailed look at Stripe’s features and options, check out our comprehensive Stripe review.

Who Is Square For? 

Square is an excellent option for multichannel or brick-and-mortar businesses, particularly in the retail, personal care and restaurant industries. Its reasonably priced $29 per month Plus plan provides industry-specific software features that simplify managing these types of businesses. Its sleek, POS-compatible hardware is attractive and functional for customer-facing interactions, making it ideal for display in a brick-and-mortar business.

Nontechnical founders of e-commerce businesses will appreciate Square’s no-code setup and ease of use. Businesses with a young customer base will benefit from Square’s support of various digital wallets and peer-to-peer payment methods. Read our in-depth review of Square to learn more about this vendor’s features and capabilities.

Stripe vs. Square Service Comparison

Here’s a closer look at each platform’s core elements and how they stack up against each other. 

Plans and Pricing

Businesses must factor a credit card processor’s pricing and fees into their budget planning. 

Stripe

Stripe’s Standard plan is designed for smaller businesses and has no setup or monthly fees. The vendor also offers a customized plan for merchants with unique business models and high payment volumes.

Standard plan features include the following:

• Embeddable checkout functionality
• Custom user interface (UI) toolkit
• Streamlined PCI compliance
• Invoice support
• Ability to process payments in more than 135 currencies and local payment methods
• Detailed real-time reporting

Stripe credit card processing costs are as follows: 

Stripe’s custom UI building blocks help e-commerce merchants create secure payment forms. Source: Stripe

Square

Square offers several plans to accommodate businesses of varying sizes and needs. We were particularly impressed by its free plan, which is an excellent option for startups or companies with low sales volumes. 

Here’s an overview of Square’s plans: 

Square allows you to accept all major credit cards, PayPal, mobile wallets like Apple Pay and Google Pay and its proprietary digital wallet, Square Pay. Additionally, Square offers various add-on services to help you automate email marketing campaigns and run text message marketing campaigns.

Payment Processing 

Businesses must carefully evaluate a vendor’s payment processing features to ensure their needs are met.

Stripe 

Stripe’s notable payment processing features are as follows:

• Designed for e-commerce: Stripe focuses on e-commerce transactions. To ensure everything runs smoothly, Stripe provides a host of developer resources for integrating its payment platform into your e-commerce site. 
• Virtual terminal available: Stripe provides a web-based virtual terminal, Stripe Terminal, that allows you to accept in-person card payments by manually keying in card information. In addition to credit and debit cards, Stripe Terminal supports Apple Pay and Google Pay. Transactions processed through Terminal integrate with your online transactions for consolidated reporting, allowing you to view all transactions in one place.
• Fast payout process: Stripe sales revenue will arrive in your business bank account on a two-day rolling basis. If you prefer, you can set up weekly or monthly batches. 
• Low chargeback fee: Stripe charges a relatively low $15 chargeback fee, which is fully refundable if the customer’s bank resolves the dispute in your favor. 

Square 

Square’s payment processing features are as follows:

• Accept payments in various ways: Square offers merchants multiple payment methods, including online, invoicing, hosted checkout payment pages and virtual terminals. It also works with many of the best POS systems. 
• Multiple customer payment types accepted: In addition to major credit cards, you can accept digital payment methods like Apple Pay, Google Pay, Cash App, Samsung Pay and ACH for invoices.
• Speedy payouts: Square holds your sales revenue in a Square Checking account. You can then transfer the money to another bank within a day. If you need it instantly, you can get it for a fee. 

Use your Square Checking account to pay bills, utilities and other expenses. Source: Square

Security

Payment security is a crucial consideration when considering payment processors.

Stripe 

Stripe includes several online payment security features in its Standard plan:

• 3D Secure: This authentication method verifies a customer’s identity before processing an online purchase.
• Card account updater: This feature automatically updates expired or renewed card information for saved customers, reducing declined charges.
• Radar adaptive acceptance: Stripe’s machine learning (ML) algorithms enhance authorization rates in real-time, increasing sales by minimizing declined transactions.
• Additional security features: Stripe offers advanced options that allow merchants to verify the authenticity of government-issued identification by matching photos ($1.50 per verification) or validating customer-provided data (such as name, date of birth and Social Security number) against government and third-party databases. 

Stripe’s online identity verification technology can help prevent payment fraud. Source: Stripe 

Square

Square’s notable security features are as follows:

• 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 functionality can help decrease fraud incidents. Additionally, Square uses ML models to identify suspicious transactions. 

Software

Your payment processor must have the necessary software to support your needs. 

Stripe 

• Mobile app: Stripe offers a mobile app that allows you to search transactions, refund purchases and view sales and customer data. However, you can’t use this app to process transactions. You must use Stripe’s mobile Terminal software for on-the-go transactions.
• POS system compatibility: Stripe’s software is compatible with several third-party POS devices.
• Highly customizable: Stripe’s software is highly customizable, with a wide array of tools to tailor the platform to your needs. 

Square 

• Multichannel sales oversight: Square’s software makes it easy for businesses that sell through multiple channels to see all their transactions in one interface. 
• Supports multiple transaction types: Square allows you to process individual transactions on your website, set up recurring transactions and handle multiparty transactions by adding fees to third-party payments processed through your app. 
• Website integration: Square integrates with your website via dedicated developer tools, or you can use Square Checkout, which redirects customers to a Square-hosted payment page.
• CRM functionality: Square offers full CRM functionality, allowing you to link purchases to customer profiles and inventory. 

Hardware

Your payment processor must be able to provide the hardware your business needs to accept customer payments. 

Stripe 

• Card readers: Stripe offers users three card readers: the Stripe Reader S700 for $349, the Stripe Reader M2 for $59 and the BBPOS WisePOS E for $249.
• Other devices: Accessories are also available, including protective covers, docks and mounts.

Square 

Unlike Stripe, Square designs and builds its own card-processing hardware, including the following:

• Square Reader for Magstripe: The Square Reader for Magstripe easily plugs into Android and iOS devices. However, this version only accepts swipe credit and debit cards, not chip or near-field communication (NFC) cards. Your first Square Reader for Magstripe is free.
• Square Reader for Contactless & Chip: The 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: The Square Terminal connects to Square’s software via Bluetooth and can accept payments by swiping, tapping or inserting cards. It can also print receipts. The Square Terminal is $299.
• POS Register: Square offers the POS Register ($799) for permanent locations. It has a cashier-facing screen and a customer-facing payment interface that can accept credit and debit cards. You can use it as a stand-alone device or combine it with accessories like a receipt printer ($299), handheld scanner ($119) and cash drawer ($249). 

Square’s POS register has a cashier-facing screen and a customer-facing touchscreen and is preloaded with POS software. Source: Square

Integrations

A processor’s available integrations enable seamless business operations.

Stripe 

• Software integrations: Stripe integrates with popular software solutions, including QuickBooks, NetSuite and other major business platforms.
• Developer tools: Since its strength is e-commerce, Stripe provides many tools to help developers integrate Stripe easily with merchant websites. These include comprehensive testing tools, a developer dashboard and hundreds of prebuilt platforms and extensions.
• Application programming interfaces (APIs): Stripe’s basic plan includes free APIs to customize your online selling and checkout experience. However, using these tools effectively requires the expertise of a skilled web developer, as they are not suited for non-technical users.

Square 

Square offers hundreds of integrations that allow you to enhance the service’s functionality, including 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

Other popular integrations include the following: 

• Instagram
• Facebook 
• Pinterest
• GoDaddy
• Mailchimp
• Gift Up
• ZipRecruiter 
• TapMango 

Customer Service

Customer support can be a significant consideration for online and brick-and-mortar retailers.

Stripe 

Stripe provides 24/7 support via phone, live chat and email. It also offers technical support through Discord and a wealth of online resources, including developer documentation and guides.

Square 

Square’s customer support team is available via phone, email, live chat and social media. Phone and chat support are offered Monday to Friday, 6 a.m. to 6 p.m. PT. The company also provides robust online help resources.

However, our research found Square’s customer service record to be inconsistent. While the system functions well for regular day-to-day operations, some customers report challenges in obtaining satisfactory resolutions when issues arise.

Approval and Setup

Businesses need a smooth approval and setup process. 

Stripe 

• Approval process: Stripe is easy to apply for and setup is straightforward for those with web developer skills. However, Stripe does not approve merchants in high-risk industries, such as financial institutions, online gambling, securities brokers, cannabis dispensaries, cryptocurrencies, bill pay services, insurance providers and crowdfunding sites.
• No-code options: If you and your team aren’t highly technical, Stripe has a no-code option for payment links. With this option, your customers will be taken to a custom checkout page hosted by Stripe. Additionally, setting up invoicing as a payment method is simple for tech novices.
• Custom integration options: For an additional fee, Stripe offers custom integration for merchants without programmers who need web integration. Alternatively, Stripe can match you with a verified third-party provider offering prebuilt solutions, making it easier to integrate Stripe with your website without requiring coding knowledge.

Stripe allows merchants to generate payment links to share with customers. Source: Stripe

Square

• Approval process: Square also has a straightforward online application process that can be completed quickly. However, like Stripe, Square is not an option for merchants in high-risk industries or certain seemingly innocuous businesses, such as membership clubs or direct marketing firms.
• Setup: Once approved, setting up Square is relatively easy. Setup time will depend on the functionality you require. 
• Easy integration options: Services like Square Checkout do not 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.

Stripe vs. Square summary

Stripe is best for e-commerce businesses and web developers.

Stripe is ideal for e-commerce businesses due to its robust security features, which help protect against fraud, chargebacks and declined transactions. It also supports payments in over 135 currencies and numerous payment methods, including digital wallets and “buy now, pay later” options, making it easy to cater to a broad customer base. Highly technical business owners will appreciate Stripe’s vast array of integrations, which will allow them to customize their platforms precisely to their needs. Still, non-technical users may require a developer’s assistance to fully implement the solution.

Square is best for brick-and-mortar businesses.

Square is ideal for brick-and-mortar or mobile in-person businesses due to its feature-rich, industry-specific software and attractive, easy-to-use hardware. Its POS systems seamlessly integrate with inventory management and staff scheduling, making it a comprehensive solution for retail, restaurant and service-based industries. E-commerce startups and non-techie business owners will also appreciate Square’s intuitive setup process and robust free plan, which includes tools for online sales and payment processing.