Stripe vs Square vs PayPal is a comparison of the three most popular payment processors for US businesses. In short, Stripe is best for online and software businesses that want custom checkouts, Square is best for in-person sales with a free point-of-sale (POS) system, and PayPal is best when buyer trust and one-click checkout matter most.
All three charge no monthly fee on their basic plans, but their card rates, payout speeds, and tools differ a lot. This guide compares 2026 fees from each company’s official pricing page, shows what you would actually pay on real sales, and helps you pick the right one for your business.
Key Takeaways
- Stripe and Square’s paid plans charge the same online card rate, 2.9% + 30¢, while standard PayPal Checkout charges 3.49% + 49¢.
- For in-person sales, PayPal POS has the lowest standard rate at 2.29% + 9¢, compared with 2.6% + 15¢ on Square’s free plan and 2.7% + 5¢ on Stripe.
- On a $1,000 online card payment, you would pay $29.30 with Stripe, $33.30 with Square’s free plan, and $35.39 with PayPal Checkout.
- Square pays out the next business day for free, Stripe in 2 business days, and PayPal in 1 to 3 business days.
- By payment volume, Stripe ($1.9 trillion in 2025) is now slightly larger than PayPal ($1.79 trillion), while Square processed about $250 billion.
Stripe vs Square vs PayPal: Quick Comparison
| Feature | Stripe | Square | PayPal |
|---|---|---|---|
| Best for | Online, SaaS, custom checkouts | In-person, retail, restaurants | Buyer trust, simple online selling |
| Monthly fee | $0 | $0 (Free), $49 (Plus), $149 (Premium) | $0 |
| Online card rate | 2.9% + 30¢ | 3.3% + 30¢ (Free), 2.9% + 30¢ (Plus) | 3.49% + 49¢ (Checkout) |
| In-person rate | 2.7% + 5¢ | 2.6% + 15¢ (Free) | 2.29% + 9¢ (PayPal POS) |
| Keyed-in rate | 3.4% + 30¢ | 3.5% + 15¢ | 3.49% + 9¢ |
| International cards | +1.5% | Not listed separately | +1.5% |
| Chargeback or dispute fee | $15 (+$15 to contest) | $0 | $15 dispute or $20 chargeback |
| Standard payout | 2 business days | Next business day | 1 to 3 business days |
| Instant payout fee | 1.5% | 1.95% | 1.5% |
| Card reader from | $59 | $59 (magstripe reader free) | $29 (first reader) |
| Currencies or countries | 135+ currencies | 8 countries | 25 currencies, 200+ markets |
US standard rates from the official Stripe pricing, Square pricing, and PayPal business fees pages, checked October 2026.
How Much Do Stripe, Square, and PayPal Charge?
Fees are where most businesses decide. Here is what you would pay on two common online card sales.
| Online Card Payment | $1,000 Sale | $5,000 Sale |
|---|---|---|
| Stripe (2.9% + 30¢) | $29.30 | $145.30 |
| Square Free plan (3.3% + 30¢) | $33.30 | $165.30 |
| Square Plus plan (2.9% + 30¢) | $29.30 | $145.30 |
| PayPal Checkout (3.49% + 49¢) | $35.39 | $174.99 |
| PayPal Advanced card payments (2.89% + 29¢) | $29.19 | $144.79 |
How much is the Stripe fee for $1,000? Stripe charges $29.30 on a $1,000 domestic online card payment, using its standard rate of 2.9% + 30¢. If the card is from another country, Stripe adds 1.5%, bringing the fee to $44.30.
How much does PayPal charge for a $5,000 transaction? Standard PayPal Checkout charges $174.99 on a $5,000 sale, at 3.49% + 49¢. If you set up PayPal’s Advanced Credit and Debit Card Payments, the card rate drops to 2.89% + 29¢, or $144.79, which is the cheapest of the three.
The lesson: PayPal is not always the most expensive. Its standard button costs more, but its advanced card option and its in-person rate are very competitive.
Stripe: Best for Online and Software Businesses
Stripe is a payment platform built for developers. Businesses can design their own checkout, run subscriptions, and accept payments in more than 135 currencies. Stripe processed $1.9 trillion in payments in 2025 for more than 5 million businesses, according to its 2025 annual letter.
Stripe pros:
- Powerful, well-documented developer tools (API)
- Supports 135+ currencies and 100+ payment methods
- Strong tools for subscriptions (Stripe Billing), tax, and marketplaces (Stripe Connect)
- Low in-person rate of 2.7% + 5¢ through Stripe Terminal
Stripe cons:
- Needs a developer for advanced setups
- No full ready-made POS app like Square’s
- Charges $15 for every dispute, plus $15 more if you contest it
- Standard payouts take 2 business days
What are the disadvantages of using Stripe? Stripe’s main disadvantages are its technical setup, the lack of a simple built-in POS system, dispute fees, and limited phone support for small accounts. Non-technical sellers often find Square or PayPal easier to start with.
Best for: online stores, SaaS companies, marketplaces, and businesses with a developer.
See our list of Stripe competitors for more options, or read our SWOT analysis of Stripe.
Square: Best for In-Person Sales
Square, owned by Block, Inc., is an all-in-one POS system for shops, cafés, restaurants, and service businesses. You get free POS software, inventory tools, and staff management, and you can sell online through Square Online. Square processed about $250 billion in payments in 2025.
Square pros:
- Free POS app with inventory and staff tools
- Free next-business-day payouts
- No chargeback fee
- Wide range of hardware, from a $59 card reader to a $299 Square Terminal and $899 Square Register
- No long-term contracts
Square cons:
- Free plan’s online rate (3.3% + 30¢) is higher than Stripe’s
- Works in only 8 countries, including the US, Canada, UK, and Australia
- Fewer advanced developer and global tools than Stripe
- Instant transfers cost 1.95%, the highest of the three
Best for: retail shops, restaurants, salons, food trucks, and businesses that sell mainly in person.
Compare Square with Clover, Toast, and others in our guide to Square competitors.
PayPal: Best for Buyer Trust and Simple Online Selling
PayPal is the most recognized name in online payments. Many shoppers already have PayPal or Venmo accounts, so they can pay in one click without typing card details. PayPal processed $1.79 trillion in payments and earned $33.2 billion in revenue in 2025.
PayPal pros:
- Trusted brand that can increase checkout conversions
- Accepts PayPal, Venmo, cards, and Pay Later in one checkout
- Lowest in-person rate of the three (2.29% + 9¢ with PayPal POS)
- Cheapest first card reader at $29
- Works in 200+ markets
PayPal cons:
- Standard checkout rate of 3.49% + 49¢ is the highest of the three
- Pay Later costs 4.99% + 49¢
- Currency conversion fees of 3% to 4%
- Sellers often report account holds and slow support
Best for: online sellers, freelancers, and small businesses whose customers like to pay with PayPal or Venmo.
See more options in our guide to PayPal competitors.
How Do Stripe, Square, and PayPal Compare Head to Head?
Stripe vs Square: Which Is Better?
Is Stripe or Square better? Stripe is better for online businesses, and Square is better for in-person businesses. Their online rates match at 2.9% + 30¢ (on Square’s paid plans), but Square’s free plan charges 3.3% + 30¢. In person, Square charges 2.6% + 15¢ on its free plan, while Stripe charges 2.7% + 5¢. On small sales, Stripe’s lower fixed fee can make it slightly cheaper.
Choose Square if you need a ready-to-use POS with hardware. Choose Stripe if you need custom checkouts, subscriptions, or global payments.
Stripe vs PayPal: Which Is Better?
Which is better, Stripe or PayPal? Stripe is better for businesses that want lower standard online fees and full control over checkout. PayPal is better when customers trust the PayPal button or want to pay with Venmo. Many online stores use both: Stripe for cards and PayPal as an extra checkout option.
Square vs PayPal: Which Is Better?
For in-person selling, PayPal POS has the lower rate (2.29% + 9¢ vs 2.6% + 15¢), but Square offers far more POS features, hardware, and business tools. For a market stall or pop-up, PayPal’s $29 reader is hard to beat. For a shop or restaurant, Square is the stronger system.
Which Payment Processor Should You Choose?
Which one is right for my business? Match your main way of selling to the right processor:
| If you are… | Best Choice | Why |
|---|---|---|
| An online store with a developer | Stripe | Custom checkout, low online rate |
| A SaaS or subscription business | Stripe | Stripe Billing and global currencies |
| A café, shop, or restaurant | Square | Free POS, hardware, next-day payouts |
| A market stall or pop-up seller | PayPal POS | Lowest in-person rate, $29 reader |
| A freelancer sending invoices | PayPal or Stripe | Trusted payments or low card fees |
| Selling to customers worldwide | Stripe | 135+ currencies |
| A brand whose customers love Venmo | PayPal | PayPal and Venmo in one checkout |
Before you decide, add up your total monthly cost, not just the card rate. Include monthly plan fees, international card fees, dispute fees, and instant payout fees. A business that sells mostly in person and occasionally online will usually save the most with Square, while an online-only business will usually save with Stripe.
Bottom Line
After 14 years of working with small business websites, my advice is simple: choose the processor that fits how your customers like to pay, not just the lowest rate. A few cents per sale matters less than a checkout that people trust and complete. For most online businesses, Stripe is the best foundation, with PayPal added as a second button. For anyone selling face to face, Square is still the easiest all-in-one system to run.
Frequently Asked Questions
For online card payments, Stripe is usually cheapest at 2.9% + 30¢, matched by Square’s paid plans. PayPal’s standard checkout costs more at 3.49% + 49¢, but its Advanced card payments rate of 2.89% + 29¢ is slightly lower than Stripe’s. For in-person sales, PayPal POS is cheapest at 2.29% + 9¢, compared with 2.6% + 15¢ on Square’s free plan.
Stripe charges $29.30 on a $1,000 domestic online card payment, based on its standard US rate of 2.9% + 30¢. If the customer pays with a card issued outside the US, Stripe adds a 1.5% international fee, raising the total to $44.30. If currency conversion is needed, Stripe adds another 1%, so international sales cost noticeably more
Standard PayPal Checkout charges $174.99 on a $5,000 sale, using its rate of 3.49% + 49¢. With PayPal’s Advanced Credit and Debit Card Payments, the fee drops to $144.79 at 2.89% + 29¢. International sales add 1.5%, and currency conversion can add 3% to 4%, so cross-border payments cost noticeably more on PayPal.
Stripe’s main disadvantages are its technical setup, which often needs a developer, and its lack of a full ready-made POS system like Square’s. It charges $15 per dispute plus $15 more to contest it, standard payouts take 2 business days, and international cards add 1.5%. Small businesses also report limited phone support compared with larger accounts.
Yes. Many businesses use more than one processor. A common setup is Stripe for online card payments, PayPal as an extra checkout button for customers who prefer it, and Square for in-person sales. Using several processors adds some bookkeeping work, but it gives customers more ways to pay and reduces the risk if one account is put on hold.
It depends on how you sell. Square is best for small businesses that sell in person, thanks to its free POS app, next-day payouts, and no chargeback fees. Stripe is best for small online businesses that want low card fees and custom checkouts. PayPal is best for freelancers and online sellers whose customers trust PayPal and Venmo.
By payment volume, Stripe is now slightly bigger. Businesses on Stripe processed $1.9 trillion in 2025, while PayPal processed $1.79 trillion. PayPal earns much more revenue, $33.2 billion in 2025, because it also runs consumer products like Venmo. Square, owned by Block, processed about $250 billion in 2025, which makes it smaller than both.
