Stripe Vs Paypal Vs Square: What Is the Difference Between These?

Starting an online business or shopping online can be a daunting affair. You have tons of things like the prepping, sourcing and other factors to consider for the process to go smoothly.

Still, these affairs wouldn’t be complete without a payment system to pay for or receive funds. That’s where Stripe, PayPal and Square come in.

These are some of the top names in the industry. Unfortunately, you still have some choices to make; to get the best ones to use as a payment gateway when shopping, or to incorporate in your online business. So let’s get right to that.

Stripe Vs PayPal Vs Square: Which is Better of These?

You’ve finally narrowed your research to these three platforms, but which do you choose?

Well, the answer is: it depends on what is suitable for your needs. To know that let’s explore all their features and benefits. Then, you’ll know what to choose.
stripe vs paypal vs square

What exactly are these platforms?

Stripe is a service for businesses to accept online payments and process credit cards. Stripe enables the secure and quick financial transaction from a credit card or bank account to a seller’s account. Rendering it one of the most effective and convenient platforms to use for electronic transactions.

You can use PayPal to receive or transfer money online with businesses or individuals who use it as their payment gateway stores. All you have to do is to connect your bank account, credit card, or debit card with your PayPal account. PayPal acts as a go-between for financial institutions and businesses, keeping everyone’s banking details safe. If your country doesn’t support PayPal you can get a Stealth PayPal account”. You can read more on “What is Stealth PayPal Account?” if you need a Verified PayPal Account.

Square is a payment processor for credit cards and point-of-sale transactions. The platform leverages mobile technology to enable business owners, creatives, merchants, and organisations of all types to receive card payments from customers using smart mobile devices. Square is progressively being used by merchants to accept both online and brick-and-mortar store payments. These make it a great payment processor for both online and in store customers.

Are Credit Cards Required?

Stripe supports the use of major debit and credit cards in their system depending on the country of its customers.

PayPal allows the use of both debit and credit cards. The platform recently incorporated a virtual card called Paypal Credit. It is a credit line product offered by the payment gateways for users. PayPal Credit works similarly to a typical credit card in that it allows you to defer payments.

Square accepts all its supported card types at the same rates. Although it has a variety of cards, like the Square debit cards, prepaid cards, regular debit cards which help store owners with their invoice, it also accepts credit cards.

What Fees Do They Charge?

The transaction fee is relatively affordable between Stripe vs Square vs PayPal. Although their rates differ depending on the type of transaction carried out.

Stripe’s flat-rate processing fees are the most expensive part of the service. Irrespective of the magnitude of the transaction, the sort of card linked to the transaction, or the provider which supplied the card, your business will typically be charged the same fee for every transaction.

When shopping online with PayPal-accepting merchants, there are no charges provided there’s no currency conversion. For transactions made in a foreign currency, there is a 3% or 4% international transaction fee.

Square charges merchants a transaction fee for every electronic payment processed through their system, as do most other payment processors. Before the payments reach your bank account, Square deducts a tiny percent of the overall funds received. Businesses are given free access to Square’s standard software and dashboard. You won’t pay any monthly or annual fees, and there is no penalty for canceling.

How’s the Security?

Stripe places an emphasis on payment security. The multiple precautions it employs to safeguard cardholder data shows this.These are among the security features it possesses:

  1. Stripe is certified as a PCI Service Provider Level 1 company. In the payments sector, this is the highest degree of certification.
  2. Stripe encrypts all of your data and communications. For secure communication, the service employs PGP keys.
  3. Stripe follows all applicable payment platform laws. It has a Money Transmitter license.

How’s the SecurityWhen you purchase items online with your debit or credit card, businesses may be privy to your payment details which is why PayPal uses a series of security measures, such as end-to-end data encryption, available two-factor account logins, and transaction email confirmations to make sure your account remains safe.

As for Square,the platform sends all details about businesses and customers to their servers in an encrypted way. Square’s databases and devices are updated and patched on a constant schedule, and their in-house apps are tested and assessed for security. The platform does not save the billing details on the user’s device.

Is there a refund system?

Stripe won’t be able to provide refunds on behalf of merchants who use the Stripe payment platform. Customers must contact the company directly in order to request an exchange or refund. If you can’t reach the company or they aren’t responding, contact your bank for help. They might offer suggestions about how to act, such as filing a complaint.

Paypal enables you to cancel a transaction or request a refund from the vendor or business if you lose interest in a purchase or make any mistakes.

Square payments can be reimbursed within one year after the initial date of acquisition. You will need to offer refunds outside of Square after this time date has elapsed.

Which Is Easier To Use?

It all depends on the needs of your company. Square excels at point-of-sale transactions, terminals, and user-friendliness.

Stripe excels at worldwide eCommerce and provides industry-leading open source tools.

Meanwhile, after Visa, Mastercard, American Express, and Discover, PayPal is now the fifth most popular payment method, and is used by millions of digital retailers. You only need your PayPal login details to make a purchase using PayPal.

Best Support System

Each Stripe account includes a free 24-hour email, phone, and chat support. Businesses with many employees can pay for specialised support management, prioritized replies, and other expert services.

PayPal’s client support service is available via email, live chat, hotline, social sites support, community support, and self-service help. If you’d rather use the self-service support, you can also look through their knowledge base.

The Square Support Center makes it easy to find Square’s most recent support resources in real time. There you can ask a query, look up a term, or look up an issue. You can also see what’s Popular among other Square merchants and search for support materials by product or topic.

Which Is The Most Popular Platform?

PayPal accepts twenty-five currencies and is accessible in over 200 countries, allowing businesses and organizations to expand a large customer base.

Stripe is just accessible in thirty-nine countries (with more on the way), but it handles over 135 currencies and accepts significantly more payment options.

Square currently only offers services in the United States, the United Kingdom, Japan, and Australia.

How Do Users Withdraw Funds?

Stripe’s payment system is simple and quick. Enter a payment amount and the card to which cash should be transferred. Funds will be deposited into the linked bank account shortly after that.

You can use the PayPal app or go to your online account to withdraw your funds on Paypal.  After that, you’ll have to withdraw funds directly to your bank account or an associated card.

Sending and receiving Square Cash is completely free. Instead of being retained in a saved balance account, payments are promptly transferred into the receiver’s bank account.

Does Stripe Handle Paypal?

Stripe and PayPal do not work together. You can, however, accept payments individually using both payment methods on your online transactions.

Does Stripe Handle Paypal

How Does Stripe Differ From Square?

The fact that Stripe solely provides payment services for internet businesses distinguishes Stripe and Square, while Square provides services for electronic, physical retail, and mobile payments. Stripe is preferable for online-only enterprises, whereas Square is great for multi-channel shops.

Final Thoughts

Although they vary in options and preferences, Stripe, PayPal and Square are some of the reputable links used by SMEs for payment and transferring of funds online. Hopefully, with this guide, you’ll be able to choose what works best for your brand. Goodluck with that!