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Business & finance ops
SQUARE, STRIPE, PAYPAL

Square vs Stripe vs PayPal: payment processing fees for a small business (2026)

Published Pricing verified

The fees, on a $100 sale in 2026:

In personOnline
Square2.6% + 15¢ ($2.75)3.3% + 30¢
Stripe(POS available)2.9% + 30¢ ($3.20)
PayPal Checkout—3.49% + 49¢ ($3.98)

Each one wins at one thing. Square owns in-person: the lowest card-present rate, plus the hardware (readers, registers, kitchen displays), appointments, and inventory — it's a full point-of-sale business, not just a processor. If you sell face-to-face at all, Square is built for you.

Stripe owns online and developer-driven payments: the best API, the best subscription and billing tooling, the most flexibility to build a custom checkout. Its 2.9% + 30¢ online rate is the lowest of the three for card-not-present, and it's the default for SaaS and modern e-commerce. Note the payout fee — 1% (min 50¢) for instant transfers.

PayPal owns checkout trust: the highest fees here, but the PayPal button and one-touch checkout measurably lift conversion for stores whose customers already have PayPal accounts and trust the brand. You're paying ~0.5 points more for that conversion bump.

The fixed fee is what makes small tickets expensive — on a $100 sale, the same processor can cost 16–67% more online than in person depending on which you pick, and on a $5 sale the 30–49¢ fixed component dominates.

Selling in person: Square, for the rate and the POS ecosystem. Selling online, especially subscriptions or anything custom: Stripe. Running an e-commerce store where checkout trust drives conversion: offer PayPal alongside another processor rather than as your only one.

Sources
  1. Square — pricing
  2. Stripe — pricing
  3. PayPal — merchant fees