The most prominent payment processing providers (PSPs) that allow small companies to take payments online or in-person are Square and PayPal. Square and PayPal are the two most popular payment processing solutions for e-commerce businesses, with over 400 million active users. Square and PayPal both allow businesses to accept payments for their online store, but the two platforms have significant distinctions. For example, Square does not charge consumers any monthly fees for payment processing, whereas PayPal costs $30 for a PayPal Pro account. In the end, both payment processors are viable choices for your eCommerce business. However, the payment processor you choose will be determined by your online business demands. This blog post will offer you comprehensive information on Square vs. PayPal so you can make an informed decision.
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PayPal vs. Square: What’s the Difference?
Square and PayPal are two well-known payment processors for online businesses. Both payment providers are beneficial to small businesses, though Square caters to those that conduct in-person transactions. Let’s start by comparing Square and PayPal as payment service providers. For the most common payment service providers, merchants can take advantage of all of the following features:
- Guaranteed customer satisfaction and top-notch customer service
- All major credit cards are accepted
- Full or partial refunds
- Get receipts via SMS or email
- Regular billing services
- Transactions that are safe and secure
Now let’s look at the differences between PayPal and Square. Here are the key distinctions between Square and PayPal:
- A Broader Selection of Payment Options: PayPal has a greater selection of payment alternatives for customers than Square, making it a better option for online firms with a global customer base.
- Monthly Fees for Payment Processing: No monthly payment processing fees for Square and $30 for a Pro PayPal account.
- Customer Service Difference: Square and PayPal provide phone and 24/7 customer service, but Square has a slightly higher rating than PayPal. For example, Square has a 4.7 out of 5-star rating, whereas PayPal has a 4.6 out of 5-star rating.
- Fees for Online Transactions: Square imposes a transaction fee of 3.5 percent plus 15 percent on every transaction. PayPal charges 2.99 percent and 49% on every transaction for US-based PayPal accounts and 3.5 percent for foreign transactions.
- Monthly Charges for POS System: Monthly fees for a POS system are $60 for Square Pro, whereas PayPal is free.
- Deposit Duration: Square takes 1-2 business days and 1.5 percent fee for the same-day, whereas PayPal deposits take 1-3 business days.
- Chargeback Fee Difference: There is no chargeback fee for Square, whereas, USD 20 is the chargeback fee of PayPal.
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Which is an Ideal Option for Business: Square vs. PayPal?
Because of its quick and simple setup, Square is an ideal choice for brick-and-mortar businesses. In addition, there are no monthly costs associated with using Square to run your online store. However, Square charges higher transaction fees than PayPal.
Furthermore, Square and PayPal charge identical fees. So, which is more cost-effective: Square or PayPal? By 0.5 percent, PayPal charges less for online transactions than Square. Additionally, for clients who prefer Venmo for online transactions, PayPal accepts Venmo payments.
So, if you’re trying to expand your business in the international market, PayPal is a good option because it offers more payment options. However, if you run a small business, Square is still a wonderful alternative for your e-commerce business.
Stripe vs. Square vs. PayPal
Payment service companies such as Square, PayPal, and Square can assist your eCommerce business in accepting online payments. Stripe is a developer-friendly payment processor that can be seamlessly integrated into eCommerce sites. It’s also ideal for online-only retailers who want to personalize their buying experience. Other reasons why retailers might wish to use Stripe include:
- Hundreds of apps are integrated.
- There are 44 countries where this product is available.
- Supports over 135 different currencies
- Developer tools for advanced APIs
Stripe is better suited to more advanced or high-tech internet enterprises. If you have a foreign customer base, however, PayPal is the best solution. Square is a good alternative if you’re just getting started, even though transaction costs are higher.
Fee Difference of PayPal and Square
Both PayPal and Square are good solutions for facilitating online transactions. However, if you’re a small business desiring to save money, you’ll want to give a thought about how much you’ll have to pay for online transactions, monthly fees, and more. We’ll go over the fees and costs of setting up PayPal or Square for your e-commerce business in this section.
Square, fortunately, does not impose a monthly subscription fee. Additionally, there are no start-up costs when you use Square for your online business. Merchants are only required to pay after a sale is made. Square and charges are 2.9 percent + 30 percent for each transaction. While merchants are exempt from monthly fees, you will be charged per transaction and monthly POS fees. In general, Square is better for in-person transactions rather than eCommerce.
What Does PayPal Cost?
PayPal, unlike Square, charges you a monthly fee of USD 30 to use PayPal for your e-commerce store. PayPal, on the other hand, is less expensive in terms of online and invoicing costs, chargeback fees, and monthly POS expenses. Overall, PayPal transaction fees are less than the charges of Square’s, allowing businesses to expand globally using other payment methods like Venmo. If you’re an online business owner with foreign customers, PayPal is the way to go.
How Does Easyship Work With Square vs. PayPal?
You should be able to decide whether Square or PayPal is a better fit for your eCommerce business now that you understand the differences between the two. To figure out if Square or PayPal is better for your business, you’ll need to look into different factors. This covers details such as transaction fees, subscription expenses, and so on. That’s why you’ll want to be sure you have all the necessary information to know about each payment service provider’s features and perks. Luckily, Easyship connects with both Square and PayPal, allowing you to quickly start your online business. This incredible feature allows you to connect your account to the Easyship dashboard and handle all of your shipments effortlessly. You’ll save up to 70% on discounted shipping costs for more than 250 couriers as a result. Going global is now even easier thanks to a dependable shipping platform.
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