Stripe vs Square: Fees and Features Compared (2026)
Stripe vs Square compared: 2026 card, ACH and invoice fees, in-person vs online payments, invoicing features and worked fee examples for small businesses.
Quick answer: In the Stripe vs Square decision, Stripe is usually better for online payments, subscriptions, custom checkouts and large ACH invoices, while Square is usually better for in-person selling with a ready-made point of sale. Fees are close on cards: about 2.9% plus 30 cents online for both on most plans, with Square charging more on its Free plan.
Stripe and Square are two of the most popular ways for US small businesses to accept card payments, and both can send invoices. They come from different directions, though. Square began as a card reader for small sellers and grew into a full point-of-sale system. Stripe began as a developer tool for online payments and grew into a platform for subscriptions, invoicing and marketplaces.
This Stripe vs Square comparison covers Stripe vs Square fees in 2026, invoicing features, in-person versus online selling, and worked examples. All fees are standard US rates at the time of writing (October 2026), from each company's pricing page or help centre. Rates change and custom pricing exists for larger businesses, so confirm before you sign up.
Stripe vs Square fees in 2026
| Payment type | Stripe | Square Free | Square Plus / Premium |
|---|---|---|---|
| Online card | 2.9% + 30¢ | 3.3% + 30¢ | 2.9% + 30¢ |
| In-person card | 2.7% + 5¢ (Terminal) | 2.6% + 15¢ | 2.5% + 15¢ (Plus), 2.4% + 15¢ (Premium) |
| Invoice paid by card | 2.9% + 30¢, plus 0.4% Invoicing fee | 3.3% + 30¢ | 2.9% + 30¢ |
| Manually keyed card | Online rate + 0.5% | 3.5% + 15¢ | 3.5% + 15¢ |
| ACH bank payment | 0.8%, capped at $5 | 1% on invoices, $1 minimum | 1% on invoices, $1 minimum, $10 cap |
| International cards | +1.5% | +1.5% | +1.5% |
| Currency conversion | +1% | Not applicable for most US sellers | Not applicable for most US sellers |
| Chargeback / dispute | $15 per dispute, plus $15 to contest (refunded if you win) | No fee | No fee |
| Monthly fee | None for standard payments | None | Paid per location |
When people search for Stripe vs Square fees in 2026, they often compare only the headline online rate. In practice, three things move the total most: how many of your payments are in person versus online, how large your average transaction is, and how many clients pay by bank transfer instead of card. A business doing mostly small in-person sales and one doing a few large B2B invoices can reach opposite conclusions from the same table.
A few notes on the table. Stripe's Tap to Pay on a phone adds 10 cents per authorisation, per its pricing page. Square's help article lists ACH on invoices for the Free plan with a $1 minimum and does not show a cap, while Plus and Premium cap it at $10. Square's Plus and Premium monthly prices are not shown on the parts of its pricing page we could read; third-party sources report about $49 and $149 per location per month, so check before you rely on those numbers.
Worked examples: who is cheaper?
Headline rates hide the real cost. Here is what each provider would charge on common transactions, using the rates above.
Example 1: a $50 in-person sale
- Stripe Terminal: 2.7% of $50 = $1.35, plus 5 cents = $1.40.
- Square Free: 2.6% of $50 = $1.30, plus 15 cents = $1.45.
- Square Plus: 2.5% of $50 = $1.25, plus 15 cents = $1.40.
On small in-person tickets the difference is a few cents. Hardware cost, ease of setup and point-of-sale features matter more.
Example 2: a $1,000 invoice paid by card
- Stripe with Invoicing: 2.9% of $1,000 = $29, plus 30 cents, plus 0.4% Invoicing fee of $4 = $33.30.
- Square Free: 3.3% of $1,000 = $33, plus 30 cents = $33.30.
- Square Plus: 2.9% of $1,000 = $29, plus 30 cents = $29.30.
If you create the invoice yourself and add a payment link to the invoice rather than using Stripe Invoicing, the Stripe cost drops to $29.30.
Example 3: a $5,000 B2B invoice paid by ACH
- Stripe ACH with Invoicing: 0.8% would be $40, capped at $5, plus 0.4% Invoicing fee of $20 = $25. Without Stripe Invoicing, $5.
- Square Free: 1% = $50.
- Square Plus: 1% capped at $10.
For larger bank payments, Stripe's cap is hard to beat. Our guide to ACH vs wire transfer explains when bank payments make sense for B2B clients.
Invoicing features compared
Both platforms can send invoices that clients pay online, but they feel different.
Square Invoices is built into the Square dashboard and app. You can send invoices and estimates, set up recurring invoices, request deposits and accept card, ACH and other methods. The Plus tier of Square Invoices adds features such as custom templates and payment schedules, and its pricing page highlights the $10 cap on ACH bank transfers. Our breakdown of Square invoice fees goes deeper.
Stripe Invoicing creates hosted invoices with a payment page, supports automatic reminders and retries, and plugs into Stripe Billing for subscriptions. It is very flexible through the API, and the dashboard works for non-developers too. You pay the per-invoice fee on top of processing. See our Stripe invoicing guide for setup steps.
Some businesses prefer to design invoices in a separate tool, then add a payment link from either processor. Our invoice generator creates a PDF with your logo, line items, tax, PO number and notes, where you can paste a payment link in the notes. It does not process payments itself; the link takes the client to Stripe or Square.
In-person vs online: where each one shines
Square for in-person selling
Square's strength is a complete point of sale out of the box: free POS software, card readers, terminals and registers, inventory, staff management and receipts. A cafe, salon, market stall or retail shop can be taking payments the same day. Industry-specific versions for restaurants, retail and appointments add tailored tools.
Stripe for online and custom payments
Stripe's strength is flexibility online. Stripe Checkout and Payment Links let you accept payments without code, while the API supports custom checkouts, subscriptions, usage-based billing, marketplaces and payouts to third parties. It supports many payment methods and currencies, which helps if you sell internationally. If you compare it to other online options, see our Stripe vs PayPal comparison.
Example 4: a year of mixed payments
Put it together for a small home-services business. In a year it takes 400 in-person card payments averaging $150 and 40 invoices of $2,000 each, half paid by card and half by ACH. On Square Free, the in-person sales cost about $1,620 (2.6% of $60,000 plus 400 times 15 cents), card invoices cost about $1,326 (3.3% of $40,000 plus 20 times 30 cents) and ACH invoices about $400 (1% of $40,000), for roughly $3,346. On Stripe, using Terminal and payment links without Stripe Invoicing, the same mix costs about $1,640 in person, $1,166 on card invoices and $100 on ACH, for roughly $2,906, before any hardware or add-on costs.
Other differences that matter
- Setup and support. Square is easier for non-technical owners. Stripe's dashboard is approachable, but advanced features assume some technical help.
- Disputes. Square lists no chargeback fee. Stripe charges $15 per dispute received. Our guide on how to handle chargebacks applies to both.
- International reach. Stripe operates in many more countries than Square, which is a factor if you plan to expand.
- Account stability. Both are aggregators, meaning they may hold funds or pause accounts after risk reviews. Keep clear records and good communication with customers to reduce this risk.
- Surcharging. If you plan to pass card fees on to customers, check card network and state rules first. Our guide to credit card surcharge rules covers the basics.
Payouts, hardware and hidden costs
Processing rates are only part of the bill. Before choosing, look at these less obvious costs.
Payout timing
Both providers pay out to a US bank account on a standard schedule, typically within a few business days, and both sell faster or instant payouts for an extra percentage. New accounts can face longer initial schedules or rolling reserves while the provider assesses risk. If you run on tight cash flow, ask about payout timing during signup and factor any instant payout fees into your comparison. Our cash flow management guide explains why timing matters as much as price.
Hardware
Square sells its own readers, terminals and registers, and its free point-of-sale app works with them out of the box. Stripe Terminal readers are also sold directly but are usually set up through Stripe-integrated software. Hardware prices change and vary by model, so compare current prices on each provider's hardware store. For a mobile business, tap to pay on a phone may remove the need for hardware altogether, but remember Stripe's extra 10 cents per authorisation.
Add-on subscriptions
Square's paid plans, industry apps and features such as kitchen display systems carry monthly fees per location or device. Stripe charges separately for products such as Billing, Tax, Radar fraud tools beyond the basics and Invoicing. Neither approach is better in principle, but a business that adds three or four paid extras can end up paying more in subscriptions than it saves on rates.
Stripe vs Square for different business types
| Business type | Usually better fit | Why |
|---|---|---|
| Cafe, salon or retail shop | Square | Ready-made POS, hardware and staff tools |
| Freelancer sending a few invoices | Either | Similar card fees; pick the dashboard you prefer |
| B2B agency with large invoices | Stripe | ACH fee capped at $5 |
| SaaS or subscription business | Stripe | Billing, usage-based pricing and APIs |
| Mobile trades and services | Square | Simple app, invoices and on-site card taking |
| International online seller | Stripe | Wider country and currency coverage |
A freelancer who invoices five clients a month will barely notice the difference between the two. For them, the choice is about which dashboard feels easier and whether clients prefer card or bank payment. A larger agency billing $20,000 a month by ACH could save several hundred dollars a year with Stripe's cap. A busy coffee shop doing hundreds of small in-person sales a day will probably value Square's POS more than any small rate difference.
How to choose between Stripe and Square
- Map your payment mix. Estimate what share of revenue comes in person, online and via invoices.
- Check ticket sizes. Fixed fees hurt small tickets; percentage fees and caps matter on large ones.
- Count bank payments. If clients pay large invoices by ACH, Stripe's $5 cap can save hundreds a year.
- Consider dispute risk. High-dispute industries benefit from Square's no-fee approach.
- Think about growth. Physical locations point to Square; subscriptions, software or international sales point to Stripe.
For a broader look at card acceptance options, read how to accept credit card payments. Processing fees are a deductible business expense for many US businesses, but check with a qualified tax adviser for your situation.
Conclusion
Stripe vs Square is less about which is cheaper and more about how you sell. Square suits in-person businesses that want a ready-made POS. Stripe suits online businesses, subscriptions and B2B invoices with large ACH payments. Whichever processor you choose, you still need clear invoices. Create one with our US invoice generator and add your payment link to the notes.
Frequently asked questions
Is Stripe or Square cheaper?
It depends on how you get paid. At the time of writing (October 2026), Stripe charges 2.9% plus 30 cents for online US cards and 2.7% plus 5 cents in person. Square's Free plan charges 2.6% plus 15 cents in person and 3.3% plus 30 cents online and on invoices, dropping to 2.9% plus 30 cents on paid plans. Stripe tends to be cheaper for online and bank payments, while Square is competitive for small in-person card sales.
Does Square charge for chargebacks?
According to Square's US fees help article at the time of writing, Square does not charge a fee for chargebacks or dispute management. You can still lose the disputed amount if the customer's bank rules against you. Stripe, by contrast, charges $15 for each dispute received, plus a $15 fee to submit evidence that is refunded if you win. If your business sees frequent disputes, this difference is worth factoring in.
Can I send invoices with Stripe?
Yes. Stripe Invoicing lets you create and email invoices with a hosted payment page that accepts cards, ACH and other methods. At the time of writing, Stripe lists the Invoicing Starter plan at 0.4% per paid invoice, charged on top of the payment processing fee. Many businesses also create invoices elsewhere and add a Stripe Payment Link to the PDF so clients can pay by card.
Is Square good for online businesses?
Square works well for small online stores, especially if you also sell in person and want one inventory and one dashboard. Its free online store builder is a strong point. However, on Square's Free plan, online card payments cost 3.3% plus 30 cents, more than Stripe's standard 2.9% plus 30 cents. Developers building custom checkouts or subscription products usually find Stripe's APIs and billing tools more flexible.
Which is better for in-person payments, Stripe or Square?
Square is generally easier for in-person selling. Its point-of-sale app, readers and registers are designed for shops, cafes and service counters, and setup takes minutes. Stripe Terminal handles in-person payments too, and its 2.7% plus 5 cents rate can be cheaper on larger tickets, but it is aimed more at businesses with developers who want to integrate in-person payments into their own software.
What is the ACH fee for Stripe vs Square?
At the time of writing, Stripe charges 0.8% for ACH Direct Debit, capped at $5 per payment. Square charges 1% for ACH payments on invoices with a $1 minimum; on the Free plan its help article lists no cap, while Plus and Premium cap the fee at $10. For large B2B invoices, Stripe's $5 cap usually makes it the cheaper choice for bank payments, before any invoicing fee.
Do Stripe and Square charge monthly fees?
Stripe's standard payments pricing has no monthly fee; you pay per transaction, with optional paid products such as Billing. Square has a Free plan with no monthly fee and paid Plus and Premium plans that lower some processing rates and add features. Third-party sources report Plus at about $49 and Premium at about $149 per location per month, but check Square's pricing page for current figures.
Can I use both Stripe and Square?
Yes, and some businesses do: Square for the shop counter and Stripe for online subscriptions or invoices. The downside is two dashboards, two sets of payouts and more reconciliation work. If you run both, record which processor took each payment in your books and match payouts to invoices regularly so fees and refunds are not missed.
How fast do Stripe and Square pay out?
Both offer standard payouts to a US bank account typically within a few business days, and both offer faster or instant payouts for an extra fee. Exact timing depends on your account, risk review and bank. New accounts may have longer initial payout schedules. Check each provider's payout settings, because cash flow timing can matter as much as the processing rate for a small business.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
Try the invoice generator