Stripe vs. Square: Which is best in 2024?
Updated 10:20 AM EDT, Mon April 29, 2024
iStock/mihailomilovanovic
When it comes to small business essentials, investing wisely in the tools that run your operations — especially those that handle customer payments — will pay off in the future. Stripe and Square are two payment processing solutions — each with unique features — that can help you manage payments.
But, whether you run an online or brick-and-mortar store — or a combination of both you’ll need to know which payment processor offers the right tools for your needs. Our Stripe vs. Square comparison takes an in-depth look at each solution’s pricing, hardware and customer support options to help you make the right choice.
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Stripe vs. Square snapshot
| Stripe | Square | |
|---|---|---|
| In-person transaction fees | 2.7% + 5 cents per in-person transaction | 2.6% + 10 cents per in-person transaction |
| Online payment (e-commerce) fees | 2.9% + 30 cents per online transaction | 2.9% + 30 cents per online transaction |
| Chargeback fees | $15 per dispute | $0 |
| ACH debit/credit payment fees |
|
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| Monthly/annual fees fees for payment processing | $0 | $0 |
| Hardware options and costs |
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| Supported currencies and locations |
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| Customer support options | 24/7 email, phone and live chat support | Phone and chat during business hours; online forum |
Pricing and fees
Here’s an overview of the pricing and fees associated with Stripe and Square’s payment processing, POS (point of sale) and e-commerce offerings.
| Stripe | Square | |
|---|---|---|
| In-person transaction fees | 2.7% + 5 cents per in-person transaction | 2.6% + 10 cents per in-person transaction |
| Online payment (e-commerce) fees | 2.9% + 30 cents per online transaction | 2.9% + 30 cents per online transaction |
| Manually entered transaction fees | 3.4% + 30 cents per transaction | 3.5% + 15 cents per transaction |
| Chargeback fees | $15 per dispute | $0 |
| ACH debit/credit payment fees |
|
|
| Invoice fees |
|
|
| Monthly/annual fees for payment processing | $0 | $0 |
| Monthly/annual fees for POS | $0 |
|
| Monthly/annual fees for online stores | $0 |
|
Stripe pricing and fees
Stripe operates on a pay-as-you-go basis; you pay for each transaction that customers make. Stripe doesn’t charge monthly or annual fees for payment processing, its POS system or its e-commerce features.
Stripe charges 2.7% plus five cents per in-person transaction, 2.9% plus 30 cents per online transaction and 3.4% plus 30 cents per manually entered transaction. If you want to take Automated Clearing House (ACH) payments (bank-to-bank transactions, in short), these cost 0.8% per transaction, capped at $5, while invoicing fees begin at 0.4% per paid invoice with Stripe’s Starter plan, increasing to 0.5% per paid invoice for the Plus plan.
Unless you want to pay 0.4% per transaction on top of the existing transaction fees for payment protection, Stripe charges $15 for each successful chargeback.
Square pricing and fees
Like Stripe, Square charges pay-as-you-go fees for payment processing, with no annual or monthly charges. However, Square differs from Stripe in that it offers free and paid plans for its POS and e-commerce tools.
Square charges 2.6% plus 10 cents per in-person transaction, 2.9% plus 30 cents per online transaction and 3.5% plus 15 cents per manually entered transaction. ACH payments cost 1% per transaction with a minimum fee of $1 per transaction, and failed transaction fees are included. Square’s invoicing charges are significantly higher than Stripe’s, coming in at 3.3% plus 30 cents per transaction.
While it’s free to get started with Square’s POS, the platform also offers various POS systems tailored to specific industries and use cases. These systems begin with free plans and include multiple pricing tiers to accommodate different needs:
- Square POS for Retail: Free, or $89 per month per location for its Plus plan
- Square POS for Restaurants: Free, or $60 per month for its Plus plan
- Square Appointments: Free, or $29 per month per location for its Plus plan or $69 per month per location for its Premium plan
Finally, if you want to use Square to power your online store, you can build a free website with a slightly higher fee of 2.9% plus 30 cents per transaction. You can also choose its Plus plan (which costs $29 per month when billed annually and also charges 2.9% plus 30 cents per transaction) for features such as personalized and self-serve ordering. Square’s Premium plan (which costs $79 per month when billed annually and charges 2.6% plus 30 cents per transaction) offers advanced features such as real-time shipping rates and premium customer support.
Verdict: Square wins by the skin of its teeth
Overall, we don’t recommend deciding between Stripe vs. Square based purely on pricing. However, since Square doesn’t charge chargeback fees, charges a slightly lower in-person transaction fee and enables you to build a free website for your online store, Square is likely to provide more value for money for small businesses, whether they’re operating online or in a brick-and-mortar environment.
Related: Our guide to average credit card processing fees in 2024
Stripe vs. Square: Hardware options
If you’re running a physical store or need an option to take in-person payments, you’ll need some hardware. From card readers to terminals and registers, both Stripe and Square offer various hardware options to help you take payments.
Stripe hardware
Stripe has a small handful of hardware options that offer end-to-end encryption, cloud-based ordering and logistics and EMV certification. Stripe’s in-person transaction fees are the same — 2.7% plus 5 cents per transaction — no matter which type of hardware you use.
Stripe Reader M2
Stripe’s card reader costs $59 and accepts chip, swipe and contactless payments. It’s powered by Bluetooth and it also supports offline mode: This is important to note if you rely on offline payments, since it’s the only hardware product from Stripe that currently offers this capability.
BBPOS WisePOS E (smart reader)
Priced at $249, this Wi-Fi-powered smart reader comes with a touchscreen display for countertop and handheld use and accepts chip, swipe and contactless payments. At the time of reporting, Stripe’s website indicates that offline mode will be available soon.
Stripe Reader S700 (advanced smart reader)
Stripe’s advanced, Android-powered card reader costs $349 and is suitable for both handheld and countertop use. As well as accepting payments, the device enables businesses to collect customer details (signatures and email addresses), run custom apps and customize the splash screen. At the time of reporting, the device isn’t available; Stripe has a “notify me when available” button displayed on its website.
BBPOS WisePad 3
This compact mobile reader with a display and PIN pad accepts chip and contactless payments. However, this device is not currently available for use or purchase in the US; only Stripe account holders in Australia, Canada, Ireland, France, Germany, the Netherlands, New Zealand and the United Kingdom can use it.
Square hardware
Square offers a wide range of hardware options suitable for a variety of different service industries including restaurants, retail stores and beauty salons. You have the flexibility to either pay for the hardware up front or you can opt to pay in monthly installments over 12 or 24 months. However, card readers must be paid for in full at the time of purchase. It’s also worth noting that Square’s transaction fees are the same — 2.6% plus 10 cents per in-person transaction — regardless of the type of hardware you use.
Square Reader for magstripe
If you’re looking for a low-cost way to accept credit card payments, Square’s free (yes, free!) magstripe credit card reader is a great choice. There are two options available — one that plugs in to a 3.5 mm headphone jack and one that plugs into Apple’s Lightning connector — enabling you to accept swipe payments wherever you are. However, it’s important to mention that many modern Android phones come equipped with USB-C connectors, which could pose issues for certain users.
Since the card reader doesn’t need charging and you can send receipts via email or text message, Square’s magstripe reader also provides you with a low-effort way of processing payments. If you find yourself in need of extra readers, you can buy them for $10 each.
Square Reader for contactless and chip
Square has two card reader options for contactless and chip payments: a first-generation reader that costs $49 and a second-generation option that comes in at $59. Both devices enable you to accept chip cards and digital wallets like Apple Pay, but the second-generation reader has a longer battery life, stronger connectivity and security; an offline mode; and works via a USB-C connector instead of a micro-USB port.
Square Register
Square’s fully-integrated POS register works well for businesses with physical locations since it provides a merchant screen and a customer screen for payments. It costs $799 (or $39 per month for 24 months) and comes fully-loaded with Square’s POS software, enabling you to manage touch-free payments, online sales and contactless pickup and delivery. Plus, you can access 24/7 phone support and enjoy chargeback protection.
Square Terminal
Suitable for businesses that need a wireless POS device, Square’s handheld terminal enables you to ring up sales and orders, and print receipts. The device also integrates with third-party apps to help businesses in the food and beverage and healthcare sectors manage specific processes such as orders and appointment-taking.
The terminal costs $299 outright, which might seem a little pricey for one device, especially when compared to Square’s card readers. However, you can also split the cost into monthly payments of $27 over 12 months.
Square Stand
The Square stand turns your 10.2-inch or 10.5-inch iPad into a handy, functional and swiveling iPad POS system. Its swivel mechanism enables you to turn the iPad to the customer for payment and allows customers to browse menus and other product options. At $149 (or $14 per month over 12 months), the stand is a relatively affordable product for businesses that want to save on counter space and remove friction throughout the customer experience.
If you want to attach your iPad POS to the wall, counter or anywhere else in your store, you can purchase Square’s stand mount for an additional $149 (or $14 per month over 12 months).
Additional hardware options
On top of these core hardware options, Square also offers a ton of accessories to help you kit out your physical store, including cash drawers, printers, barcode scanners and more. Square also gives you the option of purchasing a range of specific POS system kits that comprise different POS and accessory products, including restaurant stations, countertop kits and mobile POS kits.
And should you find yourself without an internet connection, Square supports offline credit card payments, ensuring transactions remain possible anytime and anywhere.
Verdict: Square wins for its larger and better range of hardware options
Overall, the range and quality of its hardware options make Square a clear winner. Square’s hardware pricing is on par with other similar providers in the market, and with a simple flat pricing structure for all transactions, businesses can choose products without letting transaction fees become a deciding factor. Plus, Square’s free magstripe readers are a huge plus for new businesses looking to minimize initial costs while still accepting essential card payments.
Customer support availability and reputation
Strong customer support options are essential for businesses processing payments both online and in person. After all, when there’s money involved, you need to keep your customers happy. We explored the customer support options for both providers, taking into account the needs of businesses and user reviews.
Stripe customer support
Stripe provides 24/7 customer support for all users, with an average three-minute wait time for phone calls and live chat, along with a 24-hour email response time. The downside is that instead of calling a support number directly, you have to use a contact form to request that Stripe’s customer service team call you back. Stripe also offers a dedicated live chat specifically for developers with technical issues.
Of course, 24/7 support means nothing if it’s not actually useful. Luckily, users report that Stripe’s customer service team is highly responsive, helpful and supportive.
Square customer support
Square provides phone and chat during business hours (6 a.m. to 6 p.m. PT) and an active online forum for help and guidance from other Square users. Square claims a live chat response rate of 10 minutes and an estimated wait time of 24-28 hours for email inquiries. This means that if you have an issue outside of business hours, you might be waiting a while for the help you need.
Despite the limited customer support options, users report that Square’s customer service is reliable and helpful when needed.
Verdict: Stripe takes the lead with round-the-clock customer support
If you’re having issues with payment processing or any other feature, you need to know that you can access help that’s just a click or call away, regardless of the time. Stripe emerges as the winner with 24/7 access to a responsive customer support team and a developer-specific live chat.
Ease of use
Here’s where it gets interesting. While Stripe and Square are both payment processors, they’re built for entirely different users, which also means that how easy or hard each is to use will vary significantly depending on your business needs and level of technical expertise.
Stripe
Stripe is built specifically for developers or businesses with developer resources that want to customize their online payment processes. This makes it a great choice for businesses focused on taking payments through their online stores.
Although there are no-code options for using Stripe, getting the most out of the platform requires a certain level of expertise. User reviews confirm this, with some saying they feel they need to be able to code to get full use of the platform and others saying that some of the developer functions are difficult to implement.
Square
On the other hand, while there are options aplenty for building and operating online stores with Square, it really excels with its tools and features for processing in-person payments, making it a great option for businesses that do physical selling.
All of Square’s features, systems and tools are ready to use, with no coding experience necessary. User reviews laud the platform for being extremely user friendly, functional and professional.
Verdict: Square wins as an out-of-the-box option for small businesses
While the platforms are geared toward different use cases and you should assess them based on your specific business needs, Square wins this round as the most convenient, ready-to-use option for small businesses.
Stripe vs. Square: Which is the best choice?
Given that both platforms are aimed at vastly different users, it almost seems unfair to declare a winner of the Stripe vs. Square battle. However, since that’s what we’re here to do, we believe that Square is the clear choice when it comes to assessing overall affordability, functionality and user-friendliness for small businesses.
When should you choose Stripe?
Stripe is best for businesses with developer resources that truly want to shape and mold their online payment processes to their needs. With a great customer support function that includes a developer-specific support route, it’s also good for businesses that operate around the clock and might need to access 24-7 support.
When should you choose Square?
If you want an easy-to-use POS system to power your physical store that also offers transparent fees and a free online store, Square has you more than covered. If you’re focused on building your business rather than building the backend of a payment processing system, Square’s paid POS options also enable you to scale your operations as and when you grow.
We receive compensation from our partners for Featured Offer placements, which impacts how and where their offer is displayed.
Frequently asked questions (FAQs)
If you’re still stuck in the Stripe vs. Square debate, a key difference to keep in mind is that Stripe is better equipped to help you manage online payments while Square is more geared toward businesses that sell in-person or have physical stores.
Another important difference is that while Stripe offers no-code options, the platform is built specifically for businesses with developer resources that want to customize their online payment processes.
This depends on what you intend to use Stripe or Square for. Stripe and Square charge the same fees for online transactions (2.9% plus 30 cents per transaction). For in-person transactions, Stripe charges 2.7% plus 5 cents per transaction, while Square charges 2.6% plus 10 cents. At these in-person rates, Stripe is the cheaper option for purchases under $50; for purchases above $50, Square becomes more cost-effective.
Also, while Stripe’s invoicing and recurring billing fees are cheaper than Square’s, it’s worth mentioning that Stripe has a chargeback fee of $15, while Square doesn’t levy any additional charges.
No. Square’s card reader works only with Square’s free point of sale app to process payments. If Stripe is your payment processor and you want to accept in-person payments, you’ll need to use Stripe’s proprietary hardware or use a compatible mobile device for contactless payments.
You can accept credit card payments both in-person and online by using credit card processing software and/or hardware.
If you run a physical store, you’ll need to select a provider that offers a credit card terminal or reader (hardware) with a POS system (software) to facilitate credit card payments. If you run an e-commerce store, you’ll need to choose a credit card processing solution that integrates with your website.
We ranked Stripe as the best credit card processing company for its strong e-commerce capabilities, transparent pricing, advanced reporting, excellent developer tools and support for international transactions and multicurrency payments.
If you have specific needs or prefer a ready-to-use solution without developer input, be sure to research some of the other top credit card processing companies that might align better with your business needs.
Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines, hotel chain, or other commercial entity and have not been reviewed, approved or otherwise endorsed by any of such entities.
This content is for educational purposes only and is not intended and should not be understood to constitute financial, investment, insurance or legal advice. All individuals are encouraged to seek advice from a qualified financial professional before making any financial, insurance or investment decisions.
Note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.
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