Stripe vs. Square: Differences, pros and cons in 2024

Square and Stripe are credit card processors that provide similar services. Which is best for you depends on a number of factors, like your average receipt totals and whether you’re processing your payments online or in person. When you hold up Stripe vs. Square, you’ll see that Stripe charges a few extra fees and has fewer options in terms of point-of-sale systems, but it also boasts more software integrations. We’ve reviewed 30+ payment processing companies – big and small – to find the best option for your business. Despite their differences, Square and Stripe both came out squarely on top. 

Stripe vs. Square: Quick overview

Stripe and Square started from two different places. Square has its roots in hardware, while Stripe got its start as an online payment processor. Over the years, their service areas have merged, resulting in a very similar product. 

There are still some differences, but we anticipate seeing them close further in the coming months when Stripe releases its first independent POS system.

Pricing and fees

Verdict: Square

Stripe pricing and fees

Stripe’s standard package has no monthly subscription fee, though if you want access to interchange-plus rates you will need to put a custom package together with a salesperson. Its online transaction fees are 2.9% plus $0.30 – identical to Square. 

If most of your in-person transactions total less than $500, Stripe’s fees of 2.7% plus $0.05 are cheaper, but larger orders will benefit from Square’s in-person pricing structure. For keyed transactions, Stripe is cheaper for orders that are $150 or more.

Stripe charges invoicing fees of 0.4% or 0.5%, depending on your plan. If you pay the higher rate, you get more invoicing features, like automatic collection, reconciliation and quotes. Stripe does win ACH payment fees when held up against Square, with a fee of 0.8% up to a maximum of $5. 

However, Stripe charges a $15 chargeback fee on disputes. You can avoid these fees by paying a 0.4% fee on every transaction — which pays off if you have at least one dispute for every $3,750 in sales. 

You’ll have to pay an extra fee for refunds if you’re on a custom interchange-plus plan. You also don’t get the first card processor for free with Stripe like you would with Square.

Square pricing and fees

Square does have a free plan, and investing in a $29 per month Plus plan or $79 per month Premium plan only gets you a 0.1% reduction in online transaction fees — all the other transaction fees are the same. 

The larger plans will get you access to additional features, though, like:

• Managing multiple locations.
• Creating waitlists.
• Creating customer text notifications for upcoming appointments.

If you want resource management, you’ll need the Premium plan in particular.

Here’s when Square’s standard fees are cheaper than Stripe: 

• Online transactions: Square’s fee of 2.9% plus $0.30 is identical to Stripe’s. 
• In-person transactions: Square’s fee of 2.6% plus $0.10 is cheaper on transactions larger than $500.
• Keyed transactions: Square’s fee of 3.5% plus $0.15 is cheaper on transactions less than $150.

The only time there are additional fees for invoicing is if your client pays with a card online — there’s a 0.4% fee increase. It’s more expensive to process ACH payments with Square, though. It will run you 1%. While Stripe has a cap on this fee, Square goes the other way with a minimum charge of $1. 

Square is better for refunds as there is no fee to the merchant, though Square will hold onto the original processing fees. Square also doesn’t charge dispute fees for chargebacks. Square gives you your first magstripe processor for free, though you will need to invest if you want a larger terminal.

Hardware features 

Verdict: Square

While Stripe provides you with card readers, its only full POS system is still in development. In contrast, Square provides basic card readers and multiple POS system options. You can get a full register, card terminal or iPad-enabled contactless point-of-sale system. 

Plus, you get your first card reader from Square for free, while Stripe doesn’t hand out any hardware freebies.

Stripe hardware features

If you already have a POS system, Stripe can be a good match. It offers additional card readers in a number of different formats, but it does not currently offer its own independent POS system. You’ll have to purchase that hardware separately. Here is what is currently available:

• No actual POS device available for sale. 
• Tap-to-pay options that work with either iOS or Android without any additional hardware.
• Either a compact or full smart card reader that pairs with your existing POS system.

Square hardware features

Square, on the other hand, has POS systems galore. Off the bat, you get a free magstripe card reader that works with Square’s POS app on either Android or iOS. If that’s not sufficient for your business, you can also purchase: 

• Standalone card readers. 
• iPad POS systems equipped for contactless payment with no additional card reader.
• Credit card terminal with built-in POS system.
• Square register with POS system and card readers built-in.

Software features

Verdict: Tie

If you need a POS system, Square is your best bet. Stripe is working on a device with built-in POS system software, but it’s not out to the public yet. However, Stripe comes with hundreds of integrations that Square is missing and does have card processing hardware if you already have your own POS system established. 

Stripe software features

Stripe doesn’t technically have its own POS software out to the public yet, but it does come with an impressive number of software integrations. It boasts over 550 integrations, while Square only breaches 300 integrations. 

You can check to see if the integration you need is available through Square and Stripe’s respective search tools. Stripe does have separate payment processing apps for both iOS and Android phones. 

Square software features

Square has one app that works on both iOS and Android devices. While it does have fewer integrations, part of that is because, with Square you won’t need as many. Square has its own POS system that’s built into most of its hardware. Within that system, you can access special features depending on your subscription package. 

The Plus package includes things like QR code capabilities and a free domain. These are also included in the Premium package, in addition to other perks like a lower processing rate for online orders. 

Customer service

Verdict: Stripe

Stripe and Square provide similar customer service features, but Stripe is available 24/7 while Square is not. Square’s customer service is also run completely in PST, so if you’re in another time zone, you’ll have to adapt. 

Stripe customer service

Stripe offers chat and phone support in English and Japanese 24/7. To initiate one of these options with a live representative, you’ll have to start a chat with a bot. From there, it’s fairly simple to let it know you want a live person. It will either connect you with a live representative through live chat or put in a request that a representative reach out to you by phone. 

The wait time for either option is usually about three minutes. Email is also an option, though it can take up to 24 hours to get a response. 

Square customer service

Square offers similar customer service options, but they’re not available as often. You can call Square customer service but only from 6 a.m. to 6 p.m PST. You can also request to chat or email customer service. You’ll have to talk with a bot first, but navigating the chat to a live rep or email query is simple and takes less than 10 seconds. 

Final verdict

Winner: Square

Square wins in our head-to-head, but it’s incredibly close. Square and Stripe take the first and second place on our list of best credit card processors. At the end of the day, Square does have independent POS systems, charges fewer fees (though sometimes its fees are more expensive depending on the purchase amount), and offers features and tools you won’t find with Stripe. 

Who is Stripe best for?

Stripe is best for business owners who already have their own POS system. It’s also ideal for those who want 24/7 customer service. If the vast majority of your in-person receipts total less than $500 each, Stripe is the cheaper option due to its fee structure. If you’re manually entering transactions, it’s only cheaper than Square if most of your receipts are $150 or more. 

Who is Square best for?

Square is best for those who need a full POS system for their business or the additional features Square’s software offers. If you want to avoid chargeback and return fees, Square is also a better choice. 

In-person transactions are only cheaper with Square if the purchase is greater than $500, though. If a purchase is smaller than $150 and you’re manually entering the transaction, Square is the cheaper option over Stripe. 

Frequently asked questions (FAQs)

Which is better, Stripe or Square?

Deciding whether Stripe or Square is better for you ultimately comes down to your needs. If you want a credit card processor that will also provide you with a full POS system, Square is better. However, if you already have a POS system and rely on in-person transactions of less than $500 each to keep your business running, Stripe may be the better fit.

Is Stripe cheaper than Square?

Sometimes Stripe is cheaper than Square — but not always. Both providers charge the same fees for online transactions, though the highest-level Square subscribers can get a 0.1% rate decrease. Stripe is cheaper on in-person purchases of less than $500, and it’s cheaper for keyed transactions greater than $150. However, it also comes with additional fees you wouldn’t encounter with Square, like dispute fees and return fees.

Do I need a business bank account to use Stripe or Square?

No, you do not need a business bank account to use Stripe or Square. While you do need to be operating as a business, it’s okay to use a personal bank account if you’re a sole proprietor. (Technically, nothing’s stopping you from using a personal bank account as an LLC, too, but when you mix personal and business bank accounts as an LLC, you risk losing your liability protection.)

How can I choose the best credit card processing company for my business?

You can choose the best credit card processing company for your business by asking yourself the following questions: 

• Who has the cheapest fees for my business’ preferred method of payment?
• Who has the cheapest fees for my business’ average transaction amount?
• Do I need a POS system, or do I only need card readers? 
• What are my business’ customer service needs? 
• Are there any specific software integrations my business absolutely needs?

Can I use Square with Stripe?

Yes, you can use Square with Stripe. You might do this to split your in-person transactions from your online transactions, taking advantage of whichever fee structure is cheaper for your business. Both Square and Stripe integrate with Zapier, so you can aggregate all of the data. 

However, a Square card processor will not process payments through Stripe, and Stripe payment processors can’t be used for Square payments. While you can use both and link them through a third-party app like Zapier, the hardware and software elements aren’t directly compatible.

Can any type of business use Square or Stripe?

No, not all businesses can use Square or Stripe. Aside from the obvious of running a business that deals with illegalities or pyramid schemes, you can’t get a Square or Stripe account if you engage in any of the following types of businesses: 

• Adult entertainment content or services. 
• Bankruptcy or debt collections.
• Gambling.
• Most telemarketing businesses.
• Credit repair or credit counseling.

In addition, Stripe prohibits cannabis-, explosive- and firearm-related businesses. Square bans membership clubs, infomercial sales, telepharmacy services, gas stations, drug paraphernalia and occult materials.

What is the best credit card processing company?

Square is the best credit card processing company, according to our in-depth analysis, but Stripe comes in at a very close second. Some of the other best credit card processing companies include PayPal, Helcim and Paysafe.

What banks do Square and Stripe work with?

Square and Stripe work with thousands of U.S. banks and credit unions. Odds are, yours is on the list. You can check Stripe’s list before you sign up. Square doesn’t provide a full list, but you’ll be able to see if your financial institution is included using your Square dashboard.