Payment Processors Compared
Stripe, Square and PayPal on what a sale really costs once the fixed fee and the dispute fee are counted.
Written and reviewed by the BizCredX Editorial Team Figures checked October 13, 2026
Link disclosure. Every provider link on this page is marked rel="sponsored". Right now none of them is a tracked partner link, so the buttons go straight to each provider's own site and BizCredX earns nothing from the click. If that changes, this notice will say so. Prices and rates come from each provider's own pages. See how we make money.
The Short Answer
- Lowest standard online rateStripe at 2.9% + 30¢ with no monthly fee.
- Best if you also sell in personSquare, since in-person card rates are lower than its online rate.
- Best if buyers expect a PayPal buttonPayPal, but its checkout button costs more than its card rate.
- Small ordersThe fixed fee matters more than the percentage. Check the table below before you assume the lowest percentage wins.
Side-by-Side Comparison
| Provider | Online card rate | Monthly fee | Dispute fee | Worth knowing | Best for |
|---|---|---|---|---|---|
| Stripe | 2.9% + 30¢ | $0 | $15 per dispute received | Manually entered cards add 0.5%. International cards add 1.5%, currency conversion adds 1%. | Sellers running their own site or a custom checkout |
| Square | 3.3% + 30¢ on Free. 2.9% + 30¢ on Plus ($49 a month per location). | $0 on Free, $49 Plus, $149 Premium (per location) | Not covered in this review | In-person rates run 2.6% + 15¢ on Free, lower on paid plans. Invoice card payments use the online rate. | Sellers who also take cards at markets or pop-ups |
| PayPal | 2.99% + 49¢ for cards. 3.49% + 49¢ for PayPal Checkout. | $0 (optional invoice subscription at $14.99) | $15 standard, $20 chargeback, $30 high-volume | International transactions add 1.50%. The fixed fee varies by currency. | Sellers whose buyers want to pay with a PayPal balance |
Checked October 13, 2026 against each provider's own pages (listed under Sources). Prices, fees and rates change, so confirm on the provider's site before you apply.
What a Sale Costs You
Percentages hide the fixed fee, and the fixed fee is what bites on small orders. This table works out the processing cost on three order sizes using the standard US online card rates above.
| Rate | On a $30 sale | On a $100 sale | On a $500 sale |
|---|---|---|---|
| Stripe (2.9% + 30¢) | $1.17 (3.90%) | $3.20 (3.20%) | $14.80 (2.96%) |
| Square Free plan (3.3% + 30¢) | $1.29 (4.30%) | $3.60 (3.60%) | $16.80 (3.36%) |
| PayPal card payments (2.99% + 49¢) | $1.39 (4.62%) | $3.48 (3.48%) | $15.44 (3.09%) |
| PayPal Checkout button (3.49% + 49¢) | $1.54 (5.12%) | $3.98 (3.98%) | $17.94 (3.59%) |
Standard US online card rates only, before dispute, international and currency-conversion fees. Lowest cost in each column is bold.
Provider by Provider
Stripe
Flat rate, built for custom sites
Best for: Sellers running their own site or a custom checkout
- No setup or monthly fees on standard pricing
- Lowest headline online rate here
- Strong developer tools
- Extra fees for international cards and conversion
- $15 per dispute even if you win
Square
Online and in person under one roof
Best for: Sellers who also take cards at markets or pop-ups
- Free plan with no monthly cost
- Lower in-person rates
- Invoices and online sales in one account
- Highest online rate on the free plan
- Paying $49 a month only helps at higher volume
PayPal
The button shoppers already trust
Best for: Sellers whose buyers want to pay with a PayPal balance
- Buyers recognise it, which may help conversion
- No monthly fee on standard payments
- Invoices accept PayPal and cards
- Highest fixed fee, which hurts small orders
- Three different dispute fee levels
Do Marketplace Sellers Need a Processor?
If every sale happens on Amazon, Walmart or Etsy, the marketplace is the processor and you don't pick one. A processor starts to matter the moment you add your own storefront, take wholesale orders by invoice, or sell at events.
Shopify stores should price Shopify Payments against these three before using a third-party gateway, because Shopify may charge an extra fee on top of the processor's own when you don't use its built-in option. Confirm current terms on your plan.
Disputes Cost More Than the Headline Rate Suggests
Every provider here charges a fee when a customer disputes a payment, and the fee usually stays with the provider whether you win or lose. A $15 dispute fee on a $30 order wipes out the margin on that sale and then some.
Ship with tracking, keep your product descriptions accurate, and answer disputes quickly. A processor that is $0.10 cheaper per sale isn't a bargain if it leaves you with more chargebacks.
How This Connects to Business Credit
Processing accounts don't build business credit on their own, but a processor with a clean sales history helps you show lenders consistent revenue later. That matters when you reach the revenue-based financing stage, where providers underwrite from sales data.
Ready to Open an Account?
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Frequently Asked Questions
Which one is cheapest?
On standard US online card payments, Stripe has the lowest percentage and the lowest fixed fee here. Square can match the percentage on a paid plan, and PayPal's card rate sits between the two. Run your own average order value through the table before choosing.
Can I use more than one processor?
Yes, and many sellers do. A common setup is Stripe or Shopify Payments for cards plus a PayPal button for buyers who prefer it. Keep your bookkeeping clean by labelling each payout when it lands in your bank account.
Do processing fees count as a business expense?
In general they are a deductible cost of doing business, but check with your accountant for how your records should treat them.
Keep Comparing
This is informational, not financial advice. Vendor terms, card offers, and bureau reporting policies change, and a general guide can't account for your specific credit history or business situation. Confirm current terms directly with the issuer or vendor before applying. See our editorial policy for how we verify what we publish.