Stripe vs PayPal vs Square: the honest fees

Every “best payment processor” comparison quotes three headline numbers and stops there. The headline number is the domestic, card-present-or-auto-entered rate, which is the one situation where all three look similar. The real cost is in the surcharges stacked on top: international cards, manual entry, currency conversion, and instant payouts. Here is the honest version, with the fine print.

The one fact that decides most of this: your effective rate depends on your customer mix, not the sticker price. Model your fees on how you actually get paid - online vs in person, domestic vs international - and the “cheapest” processor changes.

The headline rates

	Online	In-person	Monthly
Stripe	2.9% + $0.30	2.7% + $0.05 (Terminal)	$0
PayPal	3.49% + $0.49 (branded)	2.29% + $0.09 (Zettle)	$0
Square	3.3% + $0.30 (Free plan)	2.6% + $0.15 (Free plan)	$0 (Free plan)

All three have no monthly fee on their entry option. That is where the simplicity ends.

Stripe

Stripe’s published rate is 2.9% + $0.30 online and 2.7% + $0.05 in person via Terminal. What the headline leaves out: manually keyed cards add 0.5%, international cards add 1.5%, currency conversion adds 1%, and instant payouts cost 1.5% (minimum $0.50) instead of the free ~2-business-day rolling schedule. Disputes are $15 each.

Standout: the most transparent flat-rate model and by far the deepest developer tooling and APIs. Trade-off: the surcharges stack, so an online store selling internationally pays well above 2.9%. Best for: online-first or developer-heavy businesses that want programmable checkout and billing.

PayPal

PayPal’s economics split sharply by which button the customer clicks. The branded PayPal Checkout button - the one most buyers recognise and use - is 3.49% + $0.49, the priciest headline online rate of the three. Unbranded card processing is cheaper at 2.99% plus a fixed fee. In person, PayPal’s Zettle reader is 2.29% + $0.09 - the cheapest card-present rate here, with no subscription. International adds 1.5%, and currency conversion carries a spread of roughly 4% that is easy to miss (PayPal varies this, so check the live figure for your case).

Standout: the recognised checkout button can lift conversion enough to pay for itself, and Zettle is genuinely cheap in person. Trade-off: the button people actually click is the most expensive online rate. Best for: businesses that value checkout trust, or heavy in-person sellers on Zettle.

Square

Square is the only one of the three whose paid plans lower your per-transaction rate. On the free plan you pay 2.6% + $0.15 in person and 3.3% + $0.30 online; Plus and Premium subscriptions drop the in-person rate to 2.5% and 2.4% and the online rate to 2.9%. Manual entry is 3.5% + $0.15 on every plan. (Square’s paid-plan monthly prices and payout timing were not published on the fees page we checked, so confirm those at signup.)

Standout: an all-in-one POS ecosystem where more volume buys a lower rate. Trade-off: the best 2.4% rate requires paying for Premium; free-tier sellers pay the highest rates of the three. Best for: brick-and-mortar or hybrid retail that wants hardware, software, and payments in one place.

The lower-fee option: BTCPay Server

If you are willing to accept Bitcoin, BTCPay Server charges a 0% platform fee - you pay only the Bitcoin network fee (roughly $0.50 to $2.00 per transaction), not a percentage. It is open-source and self-custodial, so there are no card-style chargebacks and, if you self-host, no middleman.

Standout: a genuine 0% processor fee. Trade-off: it is Bitcoin-only (not a card processor), exposes you to BTC volatility unless you convert immediately, and “self-hosted” means either setup work or trusting a third-party host. Best for: crypto-native or privacy-focused businesses, as a complement to card processing, not a replacement.

How to choose

• Online-first: treat Stripe’s 2.9% + $0.30 as the transparent baseline, especially if you need developer flexibility. Watch the international and currency-conversion surcharges.
• In person: Square (2.4-2.6%) or PayPal Zettle (2.29% + $0.09) beat Stripe Terminal on card-present rates; Zettle is cheapest without a subscription.
• Conversion matters most: PayPal’s branded button costs more per sale but can win on completed checkouts.
• You genuinely want crypto: BTCPay, alongside a card processor.

Run your actual numbers. A processor that looks cheapest on the sticker can be the most expensive once your real mix of international, keyed-in, and instant-payout transactions is counted.