Stripe or Square: Which Payment Processor for Your Business?3 min read
Stripe and Square are two big players in the mobile credit card processing game. In this review, we’ll compare Stripe vs. Square to help you decide which option is better for your business.
Stripe vs. Square: Which Payment Processor for Your Business?
Stripe and Square are both popular payment processing services that work well for small businesses, but they’re not identical.
To figure out which one is right for you, you’ll need to think about how you want your payment processing system to work, including what types of payments you want to accept, what other services like workflow software you need from the provider, and what pricing options would suit your business best.
What Payment Types does Your Business Take?
Stripe supports a wide range of different payment types, but it focuses on online transactions and isn’t a good option if you do a lot of face-to-face sales or need in-depth features like inventory management or accounting software integration. Stripe works well with ecommerce sites, digital downloads, and invoicing apps such as FreshBooks.
Square is more versatile thanks to its physical POS (point of sale) terminal that allows you to process card payments in person as well as digitally. Its virtual POS options aren’t quite as strong, however, while Stripe’s offerings are strictly digital.
What Pricing Options Suit your Business?
Both Square and Stripe charge 2.9% per credit card transaction, plus an additional 30 cents. For online transactions, both companies use the same processor (Stripe) to handle the transaction. Square is cheaper because it doesn’t require a monthly fee in order to be used.
Square’s contract terms are also better than Stripe’s. The company offers month-to-month contracts with no penalties for canceling. This is good news since you can switch to another service without having to pay extra if you’re not happy with how things are going. Stripe, on the other hand, requires a 12-month commitment with a $500 cancellation fee if you break your contract early. You will also be charged a $49 fee for every month remaining on your contract once you cancel your account.
Which Payment Processor for Your Business Type?
Stripe is best for businesses that:
- Need a simple, easy-to-use payment processing system that integrates with most major e-commerce platforms and shopping carts
- Work with software developers and designers who can build custom solutions and integrate with third-party systems
Square is best for businesses that:
- Want a one-stop-shop for payment processing and extra services such as point-of-sale (POS) hardware, invoicing, appointment scheduling, payroll, or loyalty programs
- Use their own website or social media channels to sell products or services
There are many factors that go into choosing a payment processor. Both Stripe and Square have tons of features, so it’s important to do your research before deciding on the best option for your needs.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of Stripe vs. Square. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.