Key takeaways
Comparing Stripe vs Square, choose Stripe if you need advanced online payment customization. However, if you need an all-in-one system that’s easy to set up, choose Square.
For the best value all-in-one POS and payment system, choose Square
Overall Reviewer Score
4.43/5
Pricing
4.25/5
Hardware
3.75/5
Software Features
4.79/5
Support & Reliability
5/5
User Experience
4.38/5
User Scores
4.43/5
Pros
- Zero monthly fees
- Highly customizable
- Supports cross-border payment processing
- Strong machine learning-based fraud protection
- Chargeback management features
Cons
- Relies heavily on integrations for POS tools
- Initial setup takes time
- Requires a developer to make the most out of the platform
Stripe is a payment services provider that integrates with most POS software and e-commerce platforms. The system supports a wide range of credit card payment tools, such as online checkouts, invoicing, and recurring billing features.
Among all the payment services providers in the industry, I find Stripe the most customizable, providing open-source software and industry-leading developer documentation, in addition to low- and no-code solutions. Users can design advanced checkout features, such as language and currency detection.
Stripe also stands out for its top-notch machine learning-based payment security tools that can be finely tuned according to the business’s acceptable risk levels.
Users choose Stripe for scalability brought about by customization. Because the software also excels at integration, Stripe can be used as a payment processor for most popular e-commerce platforms, customer relationship management (CRM) systems, POS, and more.
Custom checkouts
Stripe provides tools for advanced checkout customization with language recognition, local currency, and local payment method support features. Users can also add ID validation, card account updater, and more.
E-commerce integration
Stripe is compatible with most e-commerce platforms, providing advanced settings, such as dynamic statement descriptors and other custom user interface (UI) elements. Stripe also works well with other e-commerce checkout tools like order fulfillment, post-payment invoices, and tax management.
Strong authentication tools
Stripe is equipped with customizable authentication tools that include address validation, ID verification, and biometric information. Stripe can also configure multi-factor authentication and 3D Secure for accounts with custom pricing.
POS integration
Stripe allows you to create custom POS apps via Stripe’s software development kits (SDKs). It supports embedded payment services for numerous top brands, such as IBM and Lightspeed, but these features are also available for all Stripe merchants.
Payment services
Stripe supports credit card, ACH, and digital payment processing — plus local payment methods in 47 countries — invoicing, recurring billing, and more. Stripe also integrates with popular buy now, pay later platforms Afterpay, Klarna, Affirm, and Zip. Read more: Top Stripe Alternatives
Overall Reviewer Score
4.39/5
Pricing
4.25/5
Hardware
4.5/5
Software Features
4.17/5
Support & Reliability
3.75/5
User Experience
5/5
User Scores
4.67/5
Pros
- All-in-one POS and payment solution
- Forever-free POS available
- Easy, nearly instant setup
- Variety of payment terminals
- Omnichannel payments and selling
- Affordable, elegant hardware
Cons
- Limited scalability
- Customer support limited to business hours
- Does not integrate with other POS software
Square is an all-in-one POS system, which means it comes with a variety of business management solutions, including payment processing. The software offers seamless selling and payments across multiple channels, all while being extremely easy to set up and use.
Square’s payment processing service supports credit card, digital, and ACH payments. It is also free to use, so businesses only need to pay the cost per transaction. And, unlike Stripe, Square offers a native POS solution with a basic free plan or pro-level plans for retail, restaurant, and appointment-based businesses.
As a complete ecosystem, Square provides startups with everything they need to begin selling and accepting in-person and online payments with minimal investment. Users looking for a complete, simple, and cost-effective business solution will find Square the best choice.
Learn more: What is Square?
Free native POS and e-commerce
Square comes with a free native POS and e-commerce platform as part of its large ecosystem. Unlike Stripe, Square’s POS is already pre-built with all the key functionalities to run a new business. Square’s website builder is also easy to set up via drag-and-drop functionalities to set up everything from logos and navigation to payment integration.
Range of payment terminals
Square has some of the most popular payment hardware on the market. It offers a free magstripe reader for each new merchant account and a contactless mobile card reader at an affordable price. Square also provides iPad stands with built-in card readers as well as standalone payment terminals for mobile and countertop set-ups.
Industry-specific POS software
In addition to its basic POS software, Square offers free and paid industry-specific platforms for retail, restaurant, and appointments for service professionals. This variety is what makes Square one of the best value-for-money POS providers.
Payment services
Square can process credit card, digital, ACH, and BNPL payments, plus invoicing, recurring payments, virtual terminal transactions, and more. There are no additional monthly fees (except for advanced invoicing and billing management tools) for accepting these payment methods.
CBD program
Square offers a CBD program for businesses to legally sell some forms of CBD products on the Square platform. Businesses that are accepted into the program have different contract terms and transaction rates, which ensure full compliance with existing cannabis distribution laws.
HIPAA compliance
Square is fully Health Insurance Portability and Accountability Act (HIPAA)-compliant, so it can be used in healthcare services. It readily signs business associate agreements (BAA) with healthcare providers, allowing secure use of Square’s invoicing and billing management features.
Read more: Top Square alternatives
How are Square and Stripe different?
Stripe
Square
Software type
Payments
All-in-one POS
Payment services
Primarily for online
In-person and online
Compatibility
Open-source; can be paired with most other software and websites
With other Square applications and APIs
Square and Stripe are both excellent payment processors for small and growing businesses. Both providers have also expanded their services, but there are key differences that make them better suited for certain business types.
Primary use
The key difference between Stripe and Square is the nature of each software. Stripe is primarily a payment processing service originally designed to support online sales, while Square is a POS system meant to support in-person sales.
Compatibility
Stripe is compatible with most online platforms, such as e-commerce websites, CRMs, and project management software. It can be integrated as a simple payment processor or used with advanced tools to add more functionality to your website.
Meanwhile, the downside of Square is that its business tools, such as Square Payments, can only work within Square’s ecosystem. Businesses that decide to migrate to a different POS or payment services provider won’t be able to continue using any of Square’s features.
Ease of use
Square is more versatile when it comes to payment services. The system is designed for easy payment processing setup for e-commerce websites, and its POS and payment terminals are ready to use out of the box.
Stripe, on the other hand, is well known for creating highly customized online payment checkouts. And while it can also support in-person sales, Stripe will require some configuration and coding before it accepts payments.
Scalability
Stripe offers no-code customizations and more advanced upgrades through software. Merchants using Stripe can choose from hundreds of third-party integrations and various resources of developer tools. Stripe has also recently launched an interchange-plus pricing structure for businesses with large-volume card transactions.
Meanwhile, Square offers a long list of pre-built business management tools that users can add to their basic Square POS. Square also offers developer-based upgrades, but they are only available for B2B and enterprise-level businesses that use the platform.
Read more: Guide to B2B payment processing
Stripe vs Square: Fees
Stripe
Square
Monthly account fee
$0
$0 (w/POS)
Upgrade options
From $10/month
From $10/month
Card-present rate
2.7% + 5 cents
2.6% + 15 cents
Card-not-present rate
2.9% + 30 cents
2.9% + 30 cents
Manually keyed-in rate
3.4% + 30 cents
3.5% + 15 cents
Card-on-file rate
3.4% + 30 cents
3.5% + 15 cents
Invoicing services
$0/month + 0.4% – 0.5% on top of regular online fee
$0/month + 3.3% + 30 cents
Billing services
0.70% of billing volume or $51.67/month
$20/month
Pay Later
Afterpay: 6% + 30 cents
Klarna: 5.99% + 30 cents
Afterpay: 6% + 30 cents
International payments
+ 1.5%
N/A
ACH
0.8%, $5 cap
1%, $10 cap
Large-volume business
Custom interchange plus rates for qualified merchants
Custom rates if processing over $250,000 annually
Mobile card readers
$59
$0-69
Smart payment terminals
$249-$349
$299-$399
Same-day funding fee
+ 1.5%
+ 1.75%
Chargeback cost
$15
Waived up to $250/month
When comparing Square vs Stripe in terms of pricing, the key is to remember that Square’s monthly fees include the use of its POS software, while Stripe’s quotes are purely for payment processing features.
Both Stripe and Square do not charge businesses a monthly fee to access their payment processing services and quote a flat-rate fee for transactions. There are no long-term contracts and cancellation fees for Square and Stripe, so businesses using either provider can cancel at any time.
Cost comparison for primary transactions
Note that both Square and Stripe have the same online transaction rates, so a comparison is not needed. However, Square offers a discounted rate of 2.6% + 30 cents if you subscribe to an advanced e-commerce plan at $79/month. Stripe will charge $10/month if you want a custom domain, but the transaction rate stays the same.
Transaction value
Card-present
Manual keyed-in
Stripe
Square
Stripe
Square
$5
$0.19
$0.28
$0.45
$0.325
$15
$0.32
$0.41
$0.64
$0.50
$20
$0.59
$0.67
$1.01
$0.85
$50
$1.40
$1.45
$2.00
$1.90
$100
$2.75
$2.75
$3.70
$3.65
$200
$5.45
$5.35
$7.10
$7.15
Both Stripe and Square charge the same fees for card-present transactions at $100. It also shows how Stripe is the better choice for smaller tickets while Square gives you better savings for larger purchases.
In terms of manual, keyed-in transactions, both providers also charge nearly the same for purchases at around $100. However, Stripe is cheaper for larger tickets, while Square is the better choice for low-to-mid transactions.
Invoicing
Transaction value
Stripe
Square
$5
$0.47
$0.45
$15
$0.81
$0.74
$20
$1.01
$0.88
$50
$2.00
$1.75
$100
$3.70
$3.20
$500
$17.30
$14.80
$1,000
$34.30
$29.80
When it comes to invoicing, Stripe’s 4% to 5% surcharge makes it more expensive than Square for card-based invoice payments, regardless of the amount. And the cost gap widens as the invoice value increases.
Meanwhile, businesses that need a built-in subscription or billing platform should consider the fees charged by both providers for using the service.
- Square: Charges a $20 monthly fee + online transaction rate (2.9% + 30 cents for card payments).
- Stripe: Charges either 0.70% of the total billing volume or $620/year (paid monthly at around $51.67/month) for up to $100,000 worth of transactions + online transaction rate (2.9% + 30 cents for card payments).
When to choose Stripe
Use Stripe if you’re only looking for a payment processing service. Stripe only charges a monthly fee if the business upgrades to access custom checkout pages. It is also cheaper than Square for businesses that accept small ticket in-person, large ticket keyed-in, and ACH payments.
In addition, only Stripe can process international payments; it charges a small 1.5% for cross-border fees. Stripe also provides custom interchange-plus rates for large-volume businesses.
When to choose Square
Use Square if you are also looking for a POS software. Square only adds a monthly fee and decreases its transaction cost if the business upgrades to a more advanced POS service. While Square’s card-present rates are slightly higher for purchases less than $100, remember that you still need to sign up and pay for a POS service or payment app if you go with Stripe.
Additionally, Square even waives chargeback costs up to $250 per month — something companies similar to Square do not do. It also leads in terms of POS hardware and price range.
Stripe vs Square: Hardware
Square Magstripe Reader
Square Contactless Reader
Square Stand
Square Terminal
Square Register
Square range of hardware
Stripe Reader M2
BBPOS WisePad 3
BBPOS WisePOS E
Stripe Reader S700
Stripe range of hardware
Stripe’s mobile contactless card reader costs $59, similar to Square. Stripe also provides a couple of in-store card readers priced at $249 and $349. These are handheld mobile types similar to Square’s (which cost $299). Square’s mobile credit card readers start at $10 for a magnetic stripe reader (the first one is free), while the contactless card reader costs $59 each. In-store registers range from $149 to $799 (available in installments in some states).
The main difference between Square and Stripe hardware is the setup requirement. A mobile credit card reader needs to be paired with a POS app downloaded to a smart mobile device. Square’s mobile POS app can be downloaded for free but with Stripe, businesses will need to design their own or pay for a third-party app.
When to choose Stripe
Choose Stripe if you want customized software for your payment terminals. For example, Stripe’s in-store credit card readers can be programmed with Lightspeed POS or custom POS software. So, while similarly priced, Square’s hardware have very limited out-of-the-box features. Businesses will need custom-programmed features to maximize hardware use.
When to use Square
Choose Square if you are looking for hardware that’s ready to use out of the box. Square also offers a wider range of options for both mobile and countertop setups. You only need to download the mobile payment app on your smartphone and connect the mobile card reader to start accepting payments. Credit card readers and Square POS software are built into Square’s in-store POS hardware.
In the news:
Square recently launched its latest handheld payment device, Square Handheld. At $399 or $37 x 12 months, this smart terminal comes with an integrated POS software and barcode reader, making it ideal for both curbside retail pickups and tableside restaurant transactions.
Related: Best POS Hardware for Businesses
Stripe vs Square: POS system
One of the key differences between Stripe and Square is their POS systems. Being primarily a POS provider, Square has a clear advantage. Square offers free POS software and different types of POS software for users upgrading to industry-specific solutions.
When to choose Square
Startups and small businesses find Square’s all-in-one POS system the most convenient because it can be set up and ready to manage your omnichannel sales, e-commerce, inventory, fulfillment, CRM, and reporting within a day. Square even offers free and paid industry-specific POS solutions, allowing businesses access to features specific to their needs. However, mid-size businesses can easily outgrow Square’s features, even with its software upgrades. For example, Square’s inventory management features offer limited flexibility. They won’t be able to handle a complex matrix of raw ingredients, processed items, and special orders that other retail and restaurant POS software could.
When to choose Stripe
Choose Stripe if you need a custom-based solution. Stripe can be integrated with most POS systems, including custom POS software for mid-size and larger businesses. This makes Stripe a better choice if you are looking for scalability.
Stripe vs Square: Payment services
Payment Types & Methods
Stripe
Square
Credit card
✓
✓
Digital wallets
✓
✓
ACH/e-check
ACH
ACH
Buy now, pay later (BNPL)
Integration
✓
Invoicing/Recurring billing
✓
✓
Virtual terminal
Limited
✓
Local payment methods
✓
✗
B2B Level 2 & 3 data processing
✓
✗
CBD
✗
✓
Healthcare services
✗
✓
Social media selling
✓
✓
Choosing between Stripe and Square for payment services boils down to the type of payment methods and checkout solutions you are looking for.
When to choose Stripe
Stripe is regarded as one of the most outstanding online payment providers, particularly for its ability to process international payments and customize language and currency at checkout based on the customer’s location. Stripe’s customization tools also allow businesses to fine-tune their customers’ checkout experience and efficiently filter suspicious transactions.
For businesses with international clients
Stripe supports over 135 currencies and local payment methods across 47+ countries. This includes credit and debit cards, prepaid cards, direct bank debits, Pay Later platforms, and digital wallets for online payments. However, note that while your customers can pay with their local currency, all transactions are converted to your default currency with a 1.5% fee.
Square supports payment processing in Australia, Canada, France, Ireland, Japan, Spain, the United Kingdom, and the U.S. You will be able to accept credit card payments regardless of where your customer is located, with the applicable exchange rate set by the card-issuing bank. However, unlike Stripe, Square supports no other local payment method.
When to Choose Square
Choose Square if you primarily accept in-person payments. Square is also a fully HIPAA-compliant POS and payment service ideal for healthcare POS solutions. It also provides its own CBD program for businesses that want to use Square to sell some form of CBD products. Square is also the better choice for users looking for a virtual terminal and BNPL payment service.
For businesses selling CBD
Did you know that Square offers a CBD program? Businesses that sell hemp and hemp-derived CBD products with less than or equal to 0.3% THC can qualify for a merchant account with Square in states where it’s legal.
This is possible because Square represents you as the Merchant of Record (MoR), allowing you to accept card payments, albeit with steeper fees.
- In-person: 3.5% + 10 cents
- Online: 3.8% + 30 cents
- Keyed-in and card-on-file: 4.4% + 15 cents
Read more: Best retail POS systems
Stripe vs Square: Customization
Square and Stripe’s customization tools are quite different from each other, with pros and cons on both sides.
When to choose Stripe
Choose Stripe if you are tech-savvy. Stripe’s versatility comes from all the possible customizations it provides through developer-based tools. Everything from how a checkout page looks and feels to the actual design of POS software can be created with the help of Stripe’s trove of SDK and API documentation. Stripe is also compatible with over 600 third-party applications and offers a long list of accredited developers to help get your custom POS system started.
Scalability with Stripe
Stripe is better for high-growth, developer-led, or global businesses, thanks to its modular APIs, enterprise infrastructure, and international reach. It offers better technical flexibility with its
- Extensive, robust APIs for almost every payment scenario
- Highly customizable, developer-centric integration
- Ability to provide users full control via Stripe Elements, Checkout, and integrations
Businesses looking for scalable volume handling will also find Stripe the better option. I find Stripe’s enterprise-grade tools offer better large transaction volume support than Square. Stripe scales more smoothly with high-growth, high-volume needs, which is why you’ll find the system powering global brands like Amazon, Shopify, and Salesforce.
When to choose Square
Choose Square if you prefer pre-built and easy-to-set-up customizations. Square lets you customize your payments and POS software with other Square products. For instance, Square’s invoicing solution can be upgraded to include tools such as multiple package estimates. Square Payroll, Square Marketing, and Square Loyalty are optional add-ons that can help tailor your POS software to your business needs. There’s also a Square App Marketplace for third-party business management integrations. Note that Square also supports developer-based customization for enterprise-level businesses.
Scalability with Square
Square is ideal for domestic SMBs, especially those with physical storefronts, needing bundled tools without much customization. If your current business goal is to grow a complete management system, using Square’s full-stack POS software and add-ons is the most efficient option.
I find Square’s infrastructure handles moderate volume well, though not as optimized as Stripe for enterprise loads. And while not as versatile as Stripe when it comes to technical flexibility, it’s not to say that Square cannot handle its own.
With Square, businesses have access to:
- API and SDKs to enhance pre-built solutions
- Developer tools that allow you to integrate your current system with Square
- APIs for customizing checkouts
Stripe vs Square: Fraud prevention
Fraud prevention is a significant factor to consider when choosing a payment and POS system. Both Square and Stripe use machine-learning technology and are certified PCI Level 1 service providers using 3D Secure and 256-bit encryption. Both also have a merchant platform to manage fraud detection settings and chargeback claims.
When to choose Stripe
Stripe edges Square out with more customization and fine-tuning fraud detection options to adjust according to a merchant’s acceptable risk level. On top of that, Stripe also supports additional tools for identity verification through SSN, address, IP, and biometrics (facial and fingerprint). Stripe can also recognize and verify local IDs in more than 30 countries.
When to choose Square
With Square, businesses can also set custom rules and alerts for fraud prevention. Although it does not provide the same level of customization as Stripe, Square’s Risk Manager service ensures that every payment sent for processing is screened and assessed for potential risk.
Square’s chargeback management tool also makes it easy to dispute and respond to claims by having the functionality to submit proof of transactions from the platform instead of sending via email. PCI compliance is also free with Square, unlike with Stripe, which requires merchants to validate their compliance annually.
Which is best?
Square stands out as an ideal solution for small and growing businesses, with its all-in-one solution, easy setup, affordable and ready-to-use hardware, and forever-free plan. As a one-stop shop for all things startup, Square is a popular choice for businesses needing a quick and convenient way to get their business off the ground with minimal investment.
Stripe is also popular among all business sizes. Though not as convenient as Square, it offers simple set up options for new online businesses using e-commerce platforms, such as WooCommerce and even Shopify. Stripe shines in its ability to customize and integrate with any system, making it the better choice if you are looking for the most scalable solution.
Also read:
Making your choice
The choice between Stripe vs Square for small business comes down to your goals and available resources, not just in terms of budget but also your access to software development skills. Square is definitely the most cost-effective solution, especially if you are building from the ground up. Setting up quickly at a low cost means minimum business downtime and more sales.
On the other hand, if your goal is to quickly grow your business with product volume, partnerships, integrations, and international sales, then Stripe may be your best fit.
Stripe and Square alternatives
Best for
Monthly fee
Fee structure
Contract Terms
Still not quite what you’re looking for? Check out our guide to best credit card processing companies and best online payment processors for more options.
FAQs
