When choosing a payment platform for your online business, two options stand out – Square and Stripe. These two have grown into popular choices for payment processing for different types of merchants. They are some of the easiest options to use, which is why small business owners love them. Although Stripe focuses more on online payments while its counterpart caters largely to in-person transactions, selecting between them can be confusing for merchants. This comparison attempts to highlight the features of each payment processor to help you decide. For additional information on the topic you can visit sites like https://paymentsprocessingsolution.com/ and learn more.
How Square Works
Square, co-founded by Jack Dorsey, is the original mobile payment platform. It was designed to make it easy for businesses to accept transactions on the go. When it first launched, the processor came with free adapters, allowing merchants to try it at no extra cost. The adapters connect through a headphone jack on mobile devices. This processing solution comes with a suite of POS systems, software, and payment hardware. It offers flat-rate payment processing. The platform also has a physical stand used on iPads. Therefore, you can do credit card processing from anywhere. It’s suitable for businesses doing less than $120,000 a month. You don’t have to apply or wait for approval to use the software and tools.
How Stripe Works
Stripe caters to online payments with options to integrate varied platforms. It works well for recurring billing and subscription services. As a credit card processing solution, it lets you accept Visa, American Express, and MasterCard, among other popular brands. It also works with buy now pay later services, mobile wallets, and e-wallets. You can also use the platform for in-person payments through its terminal, which supports credit and debit card readers. Merchant accounts using this processor can accept multiple currencies. Due to the integrations required to explore the platform’s full features, some technical know-how is necessary. The payment processor is suitable for international transactions because it supports local payment alternatives outside the US.
Square vs Stripe – Features
When comparing merchant accounts, the features offered make a considerable difference because they dictate how much you can do. With Square, you get a wide range of affordable Hardware solutions that support mobile payments. For this reason, the processor is ideal for restaurants, food trucks, trade shows, and other mobile businesses. It also comes with industry-specific software, making it easy to customize the system. The scheduling, HR, inventory, and customer management tools included help with business management. A free e-commerce website is also available with this third-party processor.
Stripe doesn’t feature a card reader, only a POS terminal with developer tools. So, it’s not the best for in-person payments. It works perfectly for an e-commerce business. Some management features you get with this platform include downloadable reports, inventory, recurring payments, invoicing, and billing. Expect similar features with the two credit card processing options. The main difference is that Square appeals to merchants who want industry-specific payment processing, while its competitor streamlines online transactions.
Plans and fees
The reason SMEs prefer these two platforms is their affordability. They are some of the cheapest options compared to other merchant services. In chip and swipe transactions, the costs are almost at par. Square charges 2.9% plus 10 cents, while its counterpart charges 2.9% plus 30 cents for every transaction. The costs remain the same for Stripe’s keyed-in payments. For chargebacks, the processor imposes a few of 0.40% and an additional 1% for international transactions. You don’t get the transaction fee back on this platform for a customer return. Additionally, this processing alternative can be costly if you opt to get most of the advanced features.
Square, on the other hand, refunds the transaction fee after a return. The platform charges 3.5% play 15 cents for keyed-in transactions, which is higher. However, it doesn’t have fees for chargebacks or international payments. The cost of a terminal starts at $300. With both payment processing options, you don’t have to worry about lengthy and complex contracts typical for conventional merchant accounts. You don’t have to pay monthly fees for either. The two platforms have quick direct deposits after processing that guarantee fast access to cash. Both have simple and transparent pricing models that small businesses new to card processing can understand easily.
Customer Support
Both processors provide email, live chat, and phone support. Therefore, you can contact customer service at your convenience. Knowledge bases are also available on the official websites to offer basic information. Square requires a higher level of technical support due to the hardware used. The software doesn’t provide a single account for multiple currencies, while its competitor does. Stripe doesn’t have the best support for physical payments. You also need an individual with some technical skills to integrate the various plugins your business might require to use the platform fully.
Conclusion
Square and Stripe are both suitable for small businesses. However, the former is best for in-person and mobile transactions, while the latter is suitable for online payments. You get an uncomplicated pricing structure with both and only a slight difference in cost. The specific demands of your business should help you pick the most appropriate payment processor.
