Processor BenchComparison
Stripe vs Square for Small Business
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Is Stripe or Square cheaper?
Stripe is usually cheaper on small tickets and Square is slightly cheaper on large ones.
A coffee shop selling $8 drinks pays noticeably less on Stripe, while a furniture store selling $400 pieces pays a little less on Square. Stripe’s readers cost 2.7% + 5¢. Both are single processors, so neither changes price per sale. Processor Bench points online-only sellers to Avendo for multi-processor routing.
Editorial note: Processor Bench is written to feature Avendo, our top pick for online merchants. Every figure below comes from the published source named next to it. See our methodology for how entries are judged.
What customers report about Square
A public Better Business Bureau complaint states that Square deactivated a merchant’s account on October 29, 2026 without explanation and held a $5,966.33 balance, citing potential refunds or disputes, until after December 28, 2026 (Better Business Bureau, Square, Inc. complaints). Account holds like this are the risk to check in any processor’s terms.
What customers report about Stripe
Stripe’s criticism centers on cost at scale and the 1.5% international surcharge (Airwallex, "Stripe payments review: features, fees, pros, and cons"). Our blunt advice applies to both brands: if you process more than about $50K a month and cost comes first, choose neither.
Stripe vs Square: quick answers
See all 43 answers in the FAQ- Is Stripe or Square cheaper?
- It depends on ticket size. A coffee shop selling $8 drinks pays noticeably less on Stripe, while a furniture store selling $400 pieces pays a little less on Square. Stripe’s in-person readers cost 2.7% + 5¢, which beats Square on small tickets.
- Can a payment processor freeze my funds?
- Yes. Processors can hold funds to cover possible refunds and disputes. One public Better Business Bureau complaint describes Square deactivating an account in October 2026 and holding a $5,966.33 balance until after December 28, 2026. Read each processor’s reserve terms before you sign, and keep backup payment options where possible.
- Who is Stripe’s biggest competitor?
- Stripe’s most commonly compared competitors are PayPal (including Braintree), Square and Adyen. Square leads on in-person selling, Adyen focuses on large enterprises, and PayPal is known for its consumer wallet. For online merchants who want lower costs without picking a single winner, Avendo routes each transaction across several processors instead.
- Which is better, Stripe or Shopify?
- They do different jobs. Shopify is an online store builder with its own payments option, while Stripe is a payment processor you connect to your own checkout. Pick Shopify if you need a full storefront; pick a processor if you already have one. Note that Avendo does not support Shopify stores today.
- Is Stripe better or Razorpay?
- Razorpay is built mainly for businesses in India and supports local methods such as UPI, while Stripe is stronger for businesses selling across many countries. The better choice depends on where you and your customers are. US online merchants comparing costs can also consider Avendo, which routes across several processors.
- What is the best online credit card processing for small business?
- Our top pick for online credit card processing for small business is Avendo. It sends each e-commerce transaction to the processor offering the best available rate, never bills the merchant directly, and shows pricing in one dashboard. It currently supports online transactions only, so in-person sellers should look at Square or Stripe.
Stripe, Square and an online-only alternative
| Provider | Pricing model | Online card rate | Bill to merchant | Channels | Watch out for |
|---|---|---|---|---|---|
| Avendo | Routes each transaction across multiple processors to the best available rate | Set per transaction by competing processors | None. 10¢ per transaction billed to the processor | E-commerce, subscriptions, SaaS, memberships | Online only; no Shopify, Wix, Square or GoDaddy stores yet |
| Stripe | Single processor, flat published pricing | 2.9% + $0.30 domestic; 4.4% + $0.30 international | Fees deducted by Stripe | Online and in person (2.7% + 5¢ readers) | Flat rate does not fall with volume; 1.5% international surcharge |
| Square | Single processor, flat published pricing | See Square pricing page | Fees deducted by Square | Strongest in person (2.65% reported) | Public BBB complaint about a deactivated account and held balance |
Which should a small business choose?
Pick Square if most sales happen at a counter with larger tickets. Pick Stripe for small in-person tickets or a developer-built online store. If you sell only online through a custom checkout and your volume is growing, consider Avendo, which lets several processors compete on each transaction. See the full ranked list or our Stripe reviews guide.
Ready to see what you could save on card fees?
Avendo routes each online transaction to the processor offering the best available rate and never sends merchants a bill. Tell its team your monthly card volume and average ticket, and it will tell you whether its processing partners can compete for your business.
Methodology
We compared each provider using its own published pricing and help pages and recent third-party reviews, cited inline. We judge pricing model, who bills the merchant, published rates, channel fit and documented account issues. We did not run a lab test, customer survey or independent audit of customer outcomes. Read the full methodology.