Stripe vs. Square vs. PayPal:
Fee Comparison for Small Businesses

Stripe, Square, and PayPal are the three most widely used payment processors for independent sellers, freelancers, and small businesses. Each has strengths in different contexts — online sales, in-person POS, invoicing — and the "best" choice depends entirely on how and where you sell. Here's a clear side-by-side breakdown.

Online Card Transactions

• Stripe: 2.9% + $0.30 per successful card transaction. International cards add 1.5%. Currency conversion adds 1%.
• Square: 2.9% + $0.30 per online card transaction. International cards accepted at the same rate (Square handles conversion internally).
• PayPal: 2.9% + $0.30 for standard transactions. International adds 1.5%–2%. Currency conversion: 3–4% spread (the most expensive of the three).

Winner for online sales: Stripe (best international rates) or Square (if you want a single rate for all cards).

In-Person / Point of Sale (POS)

• Stripe: 2.7% + $0.05 per swipe/tap/chip transaction. Requires Stripe Terminal hardware ($59–$299).
• Square: 2.6% + $0.10 per swipe/chip/tap transaction. Free card reader included. Best ecosystem for physical retail.
• PayPal: 2.29% + $0.09 per transaction with Zettle (PayPal's in-person product). Card reader required ($29–$79).

Winner for in-person: Square (lower rate, free hardware, best POS software) or PayPal Zettle (lowest rate but limited features).

Invoicing

• Stripe: Same as online rate (2.9% + $0.30). Invoicing is available via Stripe Invoicing — free for manual invoices, $0.40/invoice for automatic billing.
• Square: Same as online rate (2.9% + $0.30) for card payments on invoices. Square Invoices is free to use.
• PayPal: 2.9% + $0.30 for invoices paid by card via PayPal. Invoicing tool is free and well-suited for freelancers with no technical setup required.

Winner for invoicing: PayPal (most familiar to clients and easiest to use for one-off freelance invoices) or Square (if you need more structured invoicing workflows).

ACH / Bank Transfers

• Stripe: 0.8% capped at $5.00 — significantly cheaper for large transactions.
• Square: Not available natively.
• PayPal: Free for PayPal balance transfers between US accounts. ACH with bank not directly available via standard Invoicing.

Winner for large transactions: Stripe ACH. On a $5,000 invoice, Stripe ACH costs $5 vs. $145.30 for a card transaction.

Developer Experience & Integration

• Stripe: Industry-leading APIs, documentation, and ecosystem. The choice for developers building custom payment flows, SaaS subscriptions, or marketplace billing.
• Square: Good APIs, strong POS SDK. Best for businesses with both online and in-person channels.
• PayPal: Widely recognized by consumers, easy "buy now" buttons, PayPal checkout button increases conversions in some markets. APIs are functional but less elegant than Stripe.

Which Should You Choose?

• Freelancers invoicing clients: PayPal for familiarity; Stripe if you need ACH for large invoices.
• Online store (no in-person): Stripe for its superior international and developer tooling.
• Physical retail or food service: Square — its POS ecosystem is unmatched at this tier.
• Hybrid (online + in-person): Square or Stripe with Terminal.
• SaaS or subscription business: Stripe — nothing else comes close for recurring billing infrastructure.

Calculate the fee for any transaction with our free PayPal Fee Calculator or Stripe Fee Calculator.