Quick take: For a standard $100 online sale, Stripe and Square charge almost identically (2.9% + $0.30), while PayPal runs meaningfully higher (2.99%–3.49% + $0.49). The "cheapest" answer depends entirely on how you sell — online, in-person, or international — because each platform's advantage shows up in a different scenario.
Who This Is For
This is for anyone choosing a primary payment processor for an online store, service business, or hybrid online/in-person setup. If you're building a subscription product, the calculus leans further toward Stripe than this general comparison suggests — see the note below.
Pricing Breakdown
Rates vary by plan, region, and negotiated volume discounts — always confirm current numbers on each provider's official pricing page before deciding.
What Works Well
Stripe's real advantage isn't just the rate — it's what's included at that rate. ACH bank transfers cost 0.8% capped at $5, which is dramatically cheaper than card rates for high-ticket transactions (a $2,000 sale costs roughly $58 by card versus $5 via ACH). Stripe Billing also handles subscription dunning, proration, and metered billing at no extra cost, which matters if you're running a SaaS or membership business. Square's advantage is entirely different: it's the strongest out-of-the-box option for in-person selling, with POS hardware, inventory, and staff management built into the same dashboard — worth real money in setup time saved for a physical retail or restaurant business.
Where It Falls Short
PayPal's fixed $0.49 fee makes it meaningfully more expensive on smaller transactions specifically — on a $10 sale, PayPal's fee eats a noticeably larger share than Stripe or Square's $0.30 flat fee does. International currency conversion is the other trap across all three: Stripe charges roughly 1% for conversion, while PayPal's cross-border fees can climb to 3–4.5% above the base exchange rate — a gap that adds up fast for any business with international customers. Fund holds are a real risk with both Stripe and Square too; automated risk monitoring can freeze funds without warning, and the resolution process is commonly described as slow.
Alternatives Worth Considering
Wise is worth a dedicated look specifically for international payments — its currency conversion fees consistently undercut all three platforms above for cross-border transactions. Helcim uses interchange-plus pricing instead of flat rates, which can work out cheaper at higher volumes if you're willing to parse a more complex fee structure.
Final Verdict
If you're online-first and want the lowest overall cost with the most flexibility, Stripe is the safer default — especially if you'll ever need subscriptions or international sales. If your business is primarily in-person (retail, food service, salons), Square's integrated hardware and software make it worth a slightly different trade-off than pure transaction cost. PayPal earns its place as a secondary option alongside either — offering it at checkout measurably improves conversion for customers who trust the brand, even if it's not your cheapest processor.
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