When it comes to payment processing, there are a lot of options. Which one you choose depends on your business and which features are most important to you as a business owner.
Stripe vs Square is a common question that arises when researching your payment-processing options. Even though they have different names and target industries, both Stripe and Square offer services for businesses looking for POS system providers.
Both of these companies process payments for businesses, but they go about it in different ways. In this article, we’ll explain the differences between Stripe vs Square so you can figure out which one works best for your business needs. Let’s get started!
What Is Stripe?
Stripe is a software-as-a-service (SaaS) payment processing company. They have a wide variety of pricing and plans for different kinds of businesses.
They also have payment options for different types of industries, like e-commerce, online marketplaces, subscription businesses, and software as a service (SAAS).
Stripe supports most countries worldwide with the exception of a few military controlled territories, like Cuba, Iran, and North Korea.
There are fees associated with setting up your account, but they provide you with a free trial period to get started. Once you’re all set up, Stripe’s dashboard gives you all the information you need to manage your payments and stay on top of all your finances.
What Is Square?
Square is a mobile payment processing company that allows you to accept credit card payments using a mobile device or computer. You can also accept cash, but those are only available when using the Square Stand.
They have a variety of pricing plans for different types of businesses, like e-commerce, retail, restaurants, services, and nonprofits. One of the biggest differences between Square and Stripe is that Square is a payment processor and POS system.
This means you can accept credit card payments right through your computer or mobile device and process those payments right away.
Square has a number of features that let you manage your inventory and stay on top of your business. They also have a wide variety of support resources and apps that integrate with your Square account.
How Do Stripe And Square Differ?
Stripe and Square both provide payment processing services, but they go about it in very different ways. We’ve highlighted the main differences between Stripe vs Square below.
Stripe and Square charge similar rates for processing payments, but Stripe offers tiered pricing based on the amount of money you process per month. Square has a flat rate fee no matter the amount you process.
Square provides instant access to funds, which is great for businesses with high transaction volume. Stripe processes payments a little slower because it goes through an approval process.
Both Stripe and Square make efforts to protect customers as well as businesses from fraud. They also make efforts to protect businesses from fraudulent customers by providing chargeback options.
Which Is Better For eCommerce Businesses?
Square is ideal for eCommerce businesses looking to accept credit card payments through a mobile device or computer. They also offer a wide variety of features that help you manage your business, like inventory tracking and customer management.
Square is probably the better choice if you’re looking for a full-fledged point of sale (POS) system. You can use their app to accept cash and check payments and manage inventory and customers. They also have built-in tools for a variety of business types, like restaurants and retail stores.
If you’re a larger e-commerce business, you might want to consider using Stripe instead. They offer plans that scale with your business and provide you with more sophisticated features as your volume increases.
Which Is Better For Retail Businesses?
Square is a great option for smaller retailers looking to accept credit card payments through a mobile device or computer. It’s one of the easiest ways to accept payments in person, which is nice if you’re selling at craft fairs, farmers markets, and at a brick-and-mortar store.
Stripe provides payment processing and more sophisticated features if you’re a larger retailer. It’s a good choice if you want to scale as your business grows.
Stripe Vs Square: Which Is Easier To Set Up?
Square is much easier to set up than Stripe. Square’s hardware device plugs into an audio jack on your smartphone and you can start taking payments right away.
With Stripe, you’ll have to sign up for a payment gateway account, integrate your account with an online shopping cart, and then update your payment settings on your website.
Square is a point-of-sale terminal that is much more plug-and-play than Stripe. Square’s hardware device plugs into your smartphone and allows you to accept card payments.
Stripe’s payment gateway, on the other hand, is a separate account that you have to log into and manually input payment information. If you’re in a rush to get your business started or you’re a mobile-only business, Square is the easiest to set up
Stripe Vs Square: Quality Of Customer Service
A lot of people tend to choose Stripe vs Square based on who they think offers better customer service. While most businesses provide excellent customer service, Square has a few complaints that seem to come up again and again.
Some complaints about Square include poor customer service, high fees, and poor technical support. For example, Square’s CEO, Jack Dorsey, has admitted that their customer service is not always up to par.
They’ve also come under fire for high credit card processing fees and been accused of violating PCI standards. Stripe doesn’t have as many complaints as Square.
And the ones they do have are not as severe. One reason for this may be that Stripe targets big businesses and Square targets smaller, local businesses.
Stripe also provides payment processing and more sophisticated features if you’re a larger retailer or eCommerce business.
It’s a good choice if you want to scale as your business grows. All in all, if you’re looking for a payment processor, both Stripe and Square are great options.