Side-by-Side Feature Comparison
| Feature | Stripe | Square |
|---|---|---|
| Online transaction fee | 2.9% + $0.30 | 2.9% + $0.30 |
| In-person fee | 2.7% + $0.05 | 2.6% + $0.10 |
| Keyed-in fee | 3.4% + $0.30 | 3.5% + $0.15 |
| International surcharge | +1.5% | None |
| Monthly fee | $0 | $0 (free plan) |
| Payout speed | 2 business days (instant for fee) | Next business day (instant for fee) |
| Free POS app | Limited | Yes — full featured |
| Free card reader | No | Yes (first one free) |
| Recurring billing | Yes — Stripe Billing | Yes |
| Developer APIs | Best in class | Moderate |
| Inventory management | No | Yes — built in |
| Invoicing | Yes | Yes |
| International payments | 135+ currencies | Limited (US, CA, AU, UK, IE, JP, ES) |
| Chargeback fee | $15 | $0 (Stripe Disputes are $15 if lost) |
| Contract required | No | No |
Pricing and fees are current as of March 2026. Check each provider's website for the latest rates.
Pros and Cons
Stripe
Stripe Pros
- ✓Best developer APIs and documentation in the industry
- ✓135+ currencies with international business support
- ✓Stripe Radar for advanced AI-powered fraud detection
- ✓Stripe Billing for complex subscription and usage billing
- ✓Massive integration ecosystem and marketplace
- ✓Transparent, predictable pricing with no hidden fees
Stripe Cons
- ✕Not built for in-person retail — limited POS features
- ✕Hardware ecosystem is thin compared to Square
- ✕Customer support is not always fast for small accounts
- ✕Steep learning curve without a developer
- ✕Account holds possible for unusual transaction patterns
Square
Square Pros
- ✓Free POS app with inventory and employee management
- ✓First card reader is free — zero upfront cost to start
- ✓Best ecosystem for retail and food service businesses
- ✓No contract required — cancel anytime
- ✓Built-in appointment scheduling and loyalty programs
- ✓Simple to set up in minutes, no technical knowledge needed
Square Cons
- ✕Account stability issues reported — sudden holds can happen
- ✕Less developer flexibility than Stripe
- ✕No dedicated international processing in most countries
- ✕Higher in-person rate than Clover at high volume
- ✕Limited customization for complex business workflows
Best for In-Person Sales
Square wins decisively for in-person retail. The free POS app handles inventory tracking, employee permissions, end-of-day reports, and customer management — features that would cost $50-100/month with other providers. The first card reader is free, and Square Terminal ($299) or Square Register ($799) provide professional countertop solutions.
For a new retail store, Square's free plan lets you start processing the same day with zero upfront cost. That matters.
Best for Online Businesses
Stripe wins for online businesses, e-commerce, and subscription companies. The API quality is genuinely in a class of its own — Stripe's documentation is used as the gold standard for developer API design. If you're building a subscription product, marketplace, or any custom checkout experience, Stripe's tooling saves weeks of development time.
The fees are identical for online transactions (2.9% + $0.30), so the decision comes down to features — and for online, Stripe's ecosystem wins.
Best for Developers
Stripe is the definitive choice for any developer-led business. Stripe's documentation, webhook system, testing tools, and libraries have set the industry standard. Companies like Shopify, Amazon, and Zoom use Stripe because the developer experience is that much better.
Pricing Deep Dive
At $50,000 monthly volume with a 50/50 in-person/online split and $100 average transaction:
- Stripe: 250 online transactions × (2.9% + $0.30) + 250 in-person × (2.7% + $0.05) = $800 + $687.50 = ~$1,488/month
- Square: 250 online × (2.9% + $0.30) + 250 in-person × (2.6% + $0.10) = $800 + $675 = ~$1,475/month
The difference is minimal at standard volume. Use the calculator above to see numbers specific to your business.
Customer Support Compared
Neither Stripe nor Square is known for stellar customer support at smaller account sizes. Stripe offers 24/7 chat and email for all accounts, with faster phone access for larger accounts. Square offers 24/7 customer support via phone, chat, and email — which is a slight edge for non-technical users who want to talk to someone.
Frequently Asked Questions
Our Verdict: Pick Based on Your Sales Channel
If your business is primarily in-person — retail, food service, services — start with Square. It's free to start, zero contract risk, and the POS app is genuinely powerful. If you're building an online business, SaaS, or marketplace, Stripe's developer ecosystem and international capabilities make it the clear winner.