The days of accepting cash only are long gone. More and more consumers prefer to pay with their debit or credit card. If you’ve noticed that your business is missing out on potential customers because of your lack of accepting cards or online accounts like Apple Pay, it’s time to get a payment processor.
While an online search of payment processors can reveal many, there are two leading contenders that businesses small to large prefer to work with. These are Stripe vs Square. The main differences between the two are as follows:
- Square only offers payment services for in-person transactions.
- Stripe provides payment services for e-commerce, mobile, and physical store transactions.
- Stripe has many third-party integrations that Square doesn’t.
- Square requires little to no technical knowledge to utilize.
All You Need To Know About Digital Payment Processors
Upgrading from a cash-only business to one that takes credit and debit cards can be overwhelming, especially when you’re not tech-savvy. It’s essential to take your time and understand how these digital payment processors work so that you can select the best one to fit the needs of your business.
A digital payment processor is defined as a mediator between you and financial institutions. The processor receives the data from the customer’s debit or credit card. Then, it transfers the amount you specify from the customer’s bank account or credit limit to your business bank account. Every digital payment processor will charge a small fee for handling each transaction.
Digital payment processor technology has advanced dramatically in the last decade. When you institute a processor at your business, you can allow customers to utilize many different payment options convenient for them. These include:
- Debit Card
- Credit Card
- Direct Check
- Direct Deposit
Stripe vs Square
Most businesses who decide to upgrade to a digital payment processing service will likely be debating whether to use Stripe or Square. Understanding what each service offers and how it varies from its competitor can help your business determine what service to employ.
A cloud-based infrastructure, Stripe focuses on providing reliable payment processing service that is scalable and secure for merchants and customers alike. Founded in 2011, this processor makes up over 18 percent of the online market share for payment processors. With Stripe, you can collect payment in person or online via credit or debit cards.
When you use Stripe, you’ll have either an online processor that accepts payments via your website. Or, you can utilize a physical credit card terminal that most customers are familiar with seeing. Stripe technology is used by some of the most popular businesses out there, including Lyft, Microsoft, and Amazon.
Founded back in 2009, Square has gained notoriety as an easy-to-use payment processor for those who aren’t tech-savvy. It currently makes up about two percent of the online market share. You’ve likely seen their standalone payment gateway, which is in the shape of a square and plugs into the microphone port on any mobile device.
Square is considered a versatile gateway that allows you to swipe credit and debit cards effortlessly through its plugin port. You can also manually enter credit cards into the device for a pay-over-the-phone option.
Square vs Stripe Transaction Fees
A big part of deciding what payment processor to utilize is knowing what the fees will be. You’ll be glad to know that both processors do not have any signup fees or contractors. You can freely switch to either one without the worry of being stuck into a lengthy contract if you end up not enjoying their services.
- 2.9 % + $.30 Transaction Fee – Invoice Payments And Swiped Credit Cards
- 3.5% + $.15 Transaction Fee – Manually Entered Credit Cards
- 2.9 Percent + $.30 Transaction Fee – Basic Transaction
- 3.9 Percent Transaction Fee – International Transaction
Stripe Vs Square Accepted Payment Types
Knowing what type of payment sources a payment processor will take is a big part of deciding which one to use. You may find that many of your customers prefer a particular payment source, and you want to ensure that the payment processor that you use accepts that type of payment. Here’s a look at Square vs Stripe accepted payment sources.
- All Major Credit Cards Including AMEX
- Apple Pay
- Android Pay
- Debit Cards
- Credit Cards
- International Cards
- Wire Transfers
- ACG Direct Credit And Debit
- Visa Checkout
Is Stripe Or Square Right For Your Business?
As you’ve probably come to find out, Stripe out beats Square in almost all areas of use for businesses in both e-commerce and brick-and-mortar stores. Stripe accepts more payment platforms, the same flat rate for all domestic payment transactions, and scalable cloud-based infrastructure. No matter how big your business grows, Stripe will be there to ensure you get timely payments from all your loyal customers.
While it’s true that Stripe is a bit more in-depth to setup than Square, it’s worth the investment. At Chetu, we offer seamless Stripe integration for your business. Whether that means building websites or applications for your customers to purchase your products or services, we can make it happen.
Our skilled software developers can create robust payment infrastructures using Stripe that are both bank compliant and protect against fraud. We’ll use the Stripe APIs to create a pre-programmed dashboard that allows you to see financial reporting, billing, accounting support, payouts, and transfer reporting. Let us make a big difference in the way that your business handles its financial transactions.
William Dawsey: Global Director of Finance and Payment Systems at Chetu Inc.
William Dawsey, Global Director of Finance and Payment Systems at Chetu Inc. offers insights into the changing tides within the payments landscape discussing how emerging technologies will rattle the preexisting architecture. Chetu Inc. is a custom software provider specializing in payment gateway solutions, system integration, Blockchain development, and other fintech solutions.