About 21; min
Stripe charges 2.9% + 30¢ online. Square charges 2.6% + 15¢ in person. Both claim to be “free to start.” Neither is free once you actually start processing payments. We broke down every fee — processing, disputes, add-ons, hardware — so you can see the real cost before you pick one.
All fees verified March 2026 from stripe.com and squareup.com.
Transaction Fee Comparison
This is what most people care about. Here’s every transaction fee, side by side.
| Payment type | Stripe | Square (Free) | Square (Plus $49/mo) |
|---|---|---|---|
| Online card | 2.9% + 30¢ | 3.3% + 30¢ | 2.9% + 30¢ |
| In-person tap/chip | 2.7% + 5¢ | 2.6% + 15¢ | 2.6% + 15¢ |
| Manually keyed | 3.4% + 30¢ | 3.5% + 15¢ | 3.5% + 15¢ |
| International card | 3.9% + 30¢ | 3.3% + 30¢ | 2.9% + 30¢ |
| ACH / bank transfer | 0.8% (cap $5) | 1% (min $1) | 1% (min $1) |
| Invoices | 2.9% + 30¢ (+ 0.4%) | 3.3% + 30¢ | 2.9% + 30¢ |
The pattern is clear. Stripe wins online. Square wins in person. If you sell in both channels, the math gets complicated — we’ll break it down below.
Monthly Software Fees
This is where Square changed the game in late 2025. They overhauled their entire pricing structure.
| Plan | Stripe | Square |
|---|---|---|
| Basic / Free | $0/mo | $0/mo |
| Mid-tier | No equivalent | Plus: $49/mo |
| Premium | No equivalent | Premium: $149/mo |
Stripe has no monthly fee. Ever. You pay per transaction and that’s it. Square now has three tiers — Free, Plus ($49/mo), and Premium ($149/mo). The monthly fee buys you lower online transaction rates and advanced features like team management and loyalty programs.
Sounds like Stripe wins on simplicity. But Square’s $49/mo Plus plan drops online rates from 3.3% to 2.9% — matching Stripe. If you process more than $16,400/month online through Square, the Plus plan pays for itself in saved fees.
$16,400/mo in online sales to justify $49/mo
Free plan: 3.3% on $16,400 = $541.20
Plus plan: 2.9% on $16,400 = $475.60 + $49 = $524.60
Above $16,400/mo, Plus saves money. Below that, stick with Free.
The Real Cost: $10,000/Month in Sales
Percentages are abstract. Dollars are real. Here’s what each platform costs on $10,000 in monthly sales.
| Scenario | Stripe | Square Free | Square Plus |
|---|---|---|---|
| 100% online (100 txns) | $320 | $360 | $339 |
| 100% in-person (200 txns) | $280 | $290 | $290 + $49 |
| 50/50 split (150 txns) | $300 | $325 | $314 + $49 |
At $10,000/month:
- Online-only: Stripe saves $40/month over Square Free. That’s $480/year.
- In-person only: Square Free is $10/month cheaper. Don’t bother with Plus at this volume.
- Mixed: Stripe saves $25/month over Square Free. Square Plus costs more because of the $49 fee.
The breakeven shifts at higher volumes. At $50,000/month, Square Premium ($149/mo) with its 2.4% + 15¢ in-person rate starts winning for retail-heavy businesses.
Hidden Fees Most Comparisons Skip
Transaction fees are the headline. These are the fees buried in the fine print.
| Fee | Stripe | Square |
|---|---|---|
| Chargeback/dispute | $15 per dispute | $0 (absorbed) |
| Currency conversion | 1% on top | N/A (US only) |
| International cards | +1.5% surcharge | Same rate |
| Instant payout | 1% (min 50¢) | 1.75% |
| Recurring billing | +0.7% (Billing) | Included |
| Invoicing | +0.4-0.5% | Included |
| Standard payout | Free (2 days) | Free (1-2 days) |
Two things jump out.
Chargebacks: Stripe charges $15 per dispute, win or lose. Square absorbs chargeback costs entirely. If you’re in an industry with frequent disputes (travel, events, digital goods), Square’s $0 chargeback policy saves real money. Ten disputes a month? That’s $150 you keep with Square.
Stripe’s add-on fees: Stripe Billing adds 0.7% for subscription management. Stripe Invoicing adds 0.4-0.5%. These stack on top of the 2.9% + 30¢. A SaaS company using Stripe Billing effectively pays 3.6% + 30¢ per subscription payment. Square includes invoicing and recurring billing at no extra cost.
Hardware: In-Person Selling
This is Square’s home turf. They were a hardware company before they were a software company.
| Hardware | Stripe | Square |
|---|---|---|
| Basic card reader | BBPOS ($59) | Square Reader ($0 first, $49 after) |
| Countertop terminal | Verifone ($349) | Square Terminal ($299) |
| Full POS register | No first-party option | Square Register ($799) |
| POS app | No first-party app | Free (iOS + Android) |
Square gives you the first card reader free. Their POS app is free. The entire in-person selling experience works out of the box — download the app, plug in the reader, start swiping.
Stripe Terminal exists, but it’s built for developers integrating payments into custom kiosks or apps. There’s no “download and start selling” experience. You need a developer or a third-party POS that connects to Stripe.
If you have a physical store, this section alone decides it: Square.
Online Payments: Where Stripe Dominates
Stripe was built by developers, for developers. Its online payment infrastructure is in a different league.
| Feature | Stripe | Square |
|---|---|---|
| Checkout customization | Full API control | Pre-built forms |
| Payment methods | 135+ currencies, 40+ methods | US/CA/UK/AU/JP/FR/IE/ES |
| Subscription billing | Metered, tiered, usage-based | Basic recurring |
| Marketplace/platform | Stripe Connect | No equivalent |
| Developer docs | Industry-leading | Adequate |
| Fraud prevention | Radar (ML-based) | Basic |
| Revenue recognition | Stripe Revenue Recognition | No |
| No-code option | Payment Links | Square Online (full site builder) |
Stripe supports 135+ currencies. Square supports 8 countries. If you sell globally — or plan to — Stripe is the only option.
Stripe Connect lets platforms split payments between sellers, handle escrow, and manage complex multi-party transactions. Uber, Shopify, DoorDash — they all use Stripe Connect. Square has nothing comparable.
But Square gives you a free website builder (Square Online). No code, no developer, free hosting. For a local bakery that wants online ordering, Square Online is genuinely good enough. Stripe gives you Payment Links (shareable checkout URLs) but nothing close to a full website.
Business Tools Beyond Payments
| Tool | Stripe | Square |
|---|---|---|
| Website builder | No | Square Online (free) |
| Inventory management | No | Yes (free) |
| Employee management | No | Square Team (from $0) |
| Payroll | No | Square Payroll ($35/mo + $6/employee) |
| Loyalty program | No | Square Loyalty (Plus plan) |
| Appointments/booking | No | Square Appointments (free tier) |
| Banking | No | Square Banking (free checking) |
| Tax filing | Stripe Tax ($0.50/txn) | Via partners |
| Billing portal | Customer portal | Basic |
Square is a business operating system. Payments, inventory, employees, payroll, banking, loyalty — all under one roof. A coffee shop can run their entire business on Square without any other software.
Stripe is a payments infrastructure company. It processes payments brilliantly and doesn’t try to manage your employees or stock your shelves. If you want an all-in-one business platform, Square. If you want best-in-class payments that integrate with your existing tools, Stripe.
Annual Cost Comparison: Real Businesses
| Business type | Stripe annual cost | Square annual cost | Savings |
|---|---|---|---|
| Online SaaS ($20K/mo, 500 txns) | $7,680 | $9,720 (Free) | Stripe saves $2,040 |
| Retail store ($15K/mo, 1000 txns) | $5,460 | $4,680 | Square saves $780 |
| Restaurant ($30K/mo, 3000 txns) | $10,440 | $9,540 | Square saves $900 |
| E-commerce ($50K/mo, 2000 txns) | $17,400 + Billing fees | $20,400 (Free) | Stripe saves $3,000 |
| Freelancer ($5K/mo, 20 invoices) | $1,812 | $1,788 | Nearly identical |
The pattern holds across every scenario. Online-heavy businesses save with Stripe. In-person businesses save with Square. Freelancers sending invoices? Almost identical — pick whichever you prefer.
Who Should Pick What
Online business (SaaS, e-commerce, digital products): Stripe. Lower online rates, global payments, subscription billing, developer tools. Nothing else comes close for online-first businesses.
Physical retail or restaurant: Square Free. In-person rates are competitive, POS is free, and the ecosystem (inventory, employees, loyalty) replaces 3-4 separate tools.
Hybrid business (online + in-person): Square Plus ($49/mo) if in-person is primary. Stripe if online revenue exceeds 60% of total.
Marketplace or platform: Stripe Connect. Square has no comparable solution for multi-party payments.
Freelancer sending invoices: Square. Free invoicing, $0 chargeback fees, simpler setup. Stripe charges extra for invoicing (0.4-0.5%).
Global business selling in multiple currencies: Stripe. Not even close — Square operates in 8 countries. Stripe operates everywhere.
Non-technical business owner who wants one tool: Square. Website, POS, payments, inventory, payroll — one login, one dashboard, one bill.
Frequently Asked Questions
Can I use both Stripe and Square?
Yes. Some businesses use Square for in-person sales and Stripe for online payments. The downside: two dashboards, two reports, two reconciliation processes. Most businesses prefer picking one unless the volume justifies the complexity.
Which has better fraud protection?
Stripe Radar uses machine learning trained on billions of transactions. It’s more sophisticated than Square’s fraud tools. For high-risk or high-volume online businesses, Stripe’s fraud prevention is meaningfully better.
Do either charge monthly fees?
Stripe: never. Square: only if you choose Plus ($49/mo) or Premium ($149/mo). The Free plan has no monthly fee — you only pay per transaction.
Which is easier to set up?
Square. Download the app, create an account, plug in a reader. You’re selling in 15 minutes. Stripe requires integration — either through a platform like Shopify or through custom development. Setting up Stripe from scratch takes hours to days, not minutes.
Can I switch from one to the other?
Yes, but customer payment methods don’t transfer. Subscription customers need to re-enter their card details. Switching is disruptive — pick the right one first.
All fees verified March 2026 from stripe.com and squareup.com. Transaction fees may vary by business type and volume.
