Square vs Stripe for Small Business: Fees Compared
A side-by-side read of what Square's own pricing page and Stripe's own pricing page say about plans, rates, and features, so you can weigh each against your own sales.
Two names come up again and again when a small business shops for card processing: Square and Stripe. Neither is the right pick for every shop, and this comparison will not crown one. It puts each company's own published numbers side by side. You can weigh them against your own sales mix and decide.
How each processor prices its plans
Square's pricing page says its plans start at no cost and have no hidden fees or locked-in contracts. Fees vary based on the plan you choose, and you only pay when you take a payment.
Stripe's pricing page says standard pricing is pay-as-you-go. Its standard plan has no setup fees, monthly fees, or hidden fees, and Stripe does not charge fees like closure fees. All fees for businesses on standard pricing are listed on its website.
So both start with a pay-as-you-go shape. Square layers optional paid plans on top of that. It also offers custom pricing for businesses with large processing volumes. Who qualifies varies by market. Stripe also says it offers volume discounts. These depend on volume tiers, commitments, and product usage.
Card-present and online card rates, side by side
Here is what each company's page states, in its own words.
Square's pricing page says in-person card payments run from 2.6% + 15¢ to 2.4% + 15¢, depending on the plan.
Stripe's pricing page says in-person card payments cost 2.7% + 5¢ per successful transaction for domestic cards.
For online sales, Square's pricing page says online and invoice card payments run from 3.3% + 30¢ to 2.9% + 30¢, depending on the plan.
Stripe's pricing page says its standard online rate is 2.9% + 30¢ per successful transaction for domestic cards.
Run these numbers on your own average ticket. The method is in a forty dollar sale at the counter.
Manual entry, card on file, and API payments
Manually entered cards, and on Square's page cards on file, are priced apart from taps and online checkout.
Square's pricing page says manual entry or card on file payments cost 3.5% + 15¢.
Stripe's pricing page says manually entered cards add 0.5% to the online card rate.
For software you build yourself, Square's pricing page says card payments through its payments APIs cost 2.9% + 30¢. Stripe's page says it charges a per-transaction fee. The fee depends on the payment method the end customer uses.
Monthly fees, setup fees, and contracts
Square's pricing page says the monthly fee per location is $0, $49 or $149, and Square Plus and Square Premium charge it per location. The $0 tier is Square Free, where there are no monthly subscription costs.
On contracts, Square's pricing page says its plans have no locked-in contracts. You can cancel or switch plans anytime. Stripe's page says no setup fees, monthly fees, or hidden fees like closure fees.
A few smaller lines are worth knowing. Square's pricing page says cash or check payments are free. There are no extra fees when a gift card is redeemed. Cards issued outside the United States cost extra. Stripe's pricing page says international cards add 1.5% and currency conversion adds 1%.
Invoicing and recurring billing
Both companies fold invoicing into their plans. The plans are priced in different ways.
Square's pricing page says its plans include invoicing. Its plans let you send estimates, contracts, and invoices. The online and invoice card rate above applies to invoices paid by card.
Stripe's pricing page says its Starter invoicing plan charges 0.4% per paid invoice.
Do many customers pay by emailed invoice? If so, read both companies' invoice pages closely before you pick.
Getting your money: transfers and payouts
Square's pricing page says every plan includes next day transfers. You can transfer funds to an external bank account the next business day for free. Or you can transfer them instantly for a fee.
Security features and cost tools
Square's pricing page says every plan includes end-to-end encrypted payments, active fraud prevention, next day transfers, and offline payments.
Stripe's pricing page says dashboards, tools, and APIs give you transparency into your costs.
Lines to compare against your own sales
No verdict here, because the answer depends on how you sell.
A shop that mostly taps cards at a counter should compare Square's in-person range with Stripe's in-person rate. Use your own average ticket. A shop that sells mostly online can compare Square's online range against Stripe's standard online rate. A shop with heavy phone orders should look hard at the manual entry lines. A shop that invoices a lot should compare Square's online and invoice card rate against Stripe's 0.4% per paid invoice.
Square's pricing page also says businesses that process over $250,000 per year can talk to its team about custom pricing. Stripe's pricing page says it offers custom pricing for businesses with large processing volumes, and eligibility varies by market.
Confirm prices before you sign up
Everything above comes from each company's own pricing page. Published prices change. Read both pages on the day you sign, and work the math on your real sales before you commit to either one.