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Square vs. PayPal: What You Need to Know

Deciding between Square vs. PayPal? Here's the rundown on two of the most popular payment providers.
Square vs. PayPal: What You Need to Know
Alexandra Ortolani

By Alexandra Ortolani

 

December 14, 2021

Key Points:

  • Square and PayPal are available to use as merchant services as well as point-of-sale (POS) and eCommerce sales
  • PayPal is your best option for online businesses wanting to scale their business globally because of its more robust focus on international payment processing
  • PayPal may charge $30 as a monthly service cost, but you’ll spend more on transaction fees with Square

Square and PayPal are the most popular payment processing providers (PSPs) that help small businesses accept payments online or in person. Square and PayPal have over 400 million active users, making them the two most popular payment processing platforms for eCommerce businesses.

Square and PayPal allow merchants to process payments for their online store, though distinct differences between both platforms. For instance, Square doesn’t charge users any payment processing monthly fees, but PayPal charges $30 for a PayPal Pro account.

The bottom line is that both payment processors are valid options for your online business. However, depending on your eCommerce needs, your choice of a payment processor will vary.

This blog post will give you the full rundown on Square vs. PayPal, so you know what works best for your eCommerce business and for selling products.

Square vs. PayPal

Table of Contents

What’s the Difference Between Square vs. PayPal

Square and PayPal are both popular payment service providers for eCommerce sales. Both payment providers are an excellent help for small businesses, though Square focuses more on businesses with in-person transactions.

First, let’s go over how Square vs. PayPal are similar payment service providers. Merchants can enjoy all the following features for the popular payment service providers:

  • Excellent customer service and customer satisfaction
  • Acceptance of all credit cards
  • Issue full and partial refunds
  • Email/SMS receipts
  • Recurring billing
  • Secure and safe transactions

Now, let’s compare how Square vs. PayPal is different. Here are the critical differences between Square vs. PayPal:

  • Payment processing monthly fees: Zero fees for Square and $30 for a Pro PayPal account
  • Online transaction fees: PayPal charges 2.99% + 49¢ per transaction for US-based accounts and 3.5% for international transactions. Square charges 3.5% + 15¢ per transaction
  • POS system monthly fees: It costs $60 for Square Pro and $0 for PayPal
  • Deposit times: It takes 1-2 business days for Square or same-day for a 1.5% fee, while PayPal takes 1-3 business days
  • Chargeback fee: PayPal charges a $20 chargeback fee, but Square charges zero chargeback fee
  • Customer support: Both PayPal and Square offer 24/7 customer support and phone support, but Square has a slightly better rating than PayPal. For instance, Square has a rating of 4.7 out of 5 stars, while PayPal has a rating of 4.6 out of 5 stars
  • A wider range of payment options: PayPal offers a broader range of payment options for customers than Square, making it a better choice for online businesses with an international customer base

PayPal vs. Square for Business: Which is Better?

Square is an excellent option for brick-and-mortar businesses because of its quick and easy setup. In addition, there are no monthly fees for using Square for your online store. But, you’ll pay more for transaction fees with Square than PayPal.

In addition, Square and PayPal offer similar fees. So, which is cheaper: Square or PayPal? PayPal doesn’t charge as much as Square for online transactions by 0.5%. Plus, PayPal also accepts Venmo payments for customers who prefer Venmo for online transactions.

So, if you’re looking to scale your business globally, you’ll want to consider using PayPal because of more payment options. However, Square remains an excellent choice for your online business if you’re a small business just starting.

Stripe vs. PayPal vs. Square

Square, PayPal, and Square are payment service providers that can help your eCommerce business accept online payments.

Stripe is developer-friendly that allows for seamless integration into eCommerce websites. Plus, it’s best for online-only businesses looking to customize their shopping experience.

Here are some other reasons merchants may want to use Stripe:

  • Integrations with hundreds of apps
  • Available in 44 countries
  • Supports 135+ currencies
  • Advanced API developer tools

Overall, you’ll want to use Stripe for more advanced or high-tech online businesses. But, PayPal is your best option if you have an international customer base. Though you’ll spend more on transaction fees, Square remains an excellent option if you’re just starting.

Related post: Venmo vs. PayPal: What’s Better for Your Online Store

PayPal vs. Square Fees

PayPal and Square are both excellent options for powering your online transactions. However, you’ll want to consider how much you’ll have to pay for online transactions, monthly fees, and more, especially if you’re a small business looking to save money.

Here, we’ll go over the specific fees and costs of setting up PayPal or Square for your eCommerce business.

The Cost of Square

Fortunately, Square doesn’t charge monthly subscription fees. Plus, there are no start-up fees associated with using Square for your online business. Merchants only have to pay when they make a sale. For instance, you’ll pay 2.9% + 30¢ per transaction with Square.

Here’s the breakdown of the costs involved in setting up Square for your online store:

The Cost of Square for Online Businesses

While merchants don’t have to pay monthly fees, you’ll still get charged per transaction and POS monthly fees. Overall, Square is better for in-person transactions, not eCommerce businesses.

The Cost of PayPal

Unlike Square, PayPal charges a $30 monthly fee for using PayPal for your online store. Fortunately, PayPal is less expensive regarding online and invoice fees, chargeback fees, and POS monthly fees.

Here’s the breakdown of costs of using PayPal for your online store:

The Cost of PayPal for Online Businesses

Overall, PayPal transaction fees are lower than Square and allow businesses to scale their business globally with different payment methods such as Venmo. So, if you’re a merchant with an international customer base, you’ll want to use PayPal.

How Easyship Integrates with Square vs. PayPal

Now that you know all the basics between Square and PayPal, you should be able to decide if Square or PayPal is a better choice for your eCommerce business.

Understanding if Square vs. PayPal is best for your business involves researching different information. This includes information such as transaction fees, monthly subscription costs, and more. That’s why you’ll want to make sure you understand all the features and benefits of each payment service provider.

Fortunately, Easyship integrates with both Square and PayPal so you can get your online business up and running. This feature means that you can automatically integrate your account to the Easyship dashboard to manage all your shipments. As a result, you’ll save up to 70% off discounted shipping rates for 250+ couriers. So now, going global is even easier with a reliable shipping platform.

Ready to ship? Sign up for a FREE Easyship account and gain instant access to high-volume discounts, so you can start selling today


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