Comparing Payment Processor Plans: Stripe vs. Square vs. PayPal
A neutral, side-by-side comparison of the three most popular payment processors for freelancers and small businesses.
Stripe
2.9% + $0.30
Standard card rate
Square
2.6% + $0.10
Standard card rate
PayPal
3.49% + $0.49
Standard card rate
Choosing a payment processor is one of the most consequential financial decisions you'll make for your business. The "right" choice depends on your business type, invoice size, client base, and technical needs — not just the advertised rate.
Full Feature Comparison
| Feature | Stripe | Square | PayPal |
|---|---|---|---|
| Standard Rate | 2.9% + $0.30 | 2.6% + $0.10 | 3.49% + $0.49 |
| ACH/Bank Transfer | 0.8% (cap $5) | 1% (min $1) | ~1% |
| Monthly Fee | None | None | None |
| International | +1.5% | N/A | +1.5% + fixed |
| Instant Payout | 0.5–1.5% fee | 1.75% fee | 1.75% fee |
Who Should Use Each Processor?
Stripe
Best for: Developers, SaaS, freelancers who need APIs
Square
Best for: In-person payments, retail, food service
PayPal
Best for: International clients, consumer-familiar brands
The Verdict for Freelancers
For most freelancers invoicing clients online, Stripe offers the best combination of competitive rates, powerful invoicing tools, and professional credibility. Square is ideal if you ever take in-person payments. PayPal remains valuable when you're invoicing internationally or working with clients who are more familiar with it.
Compare how each processor's exact rates affect your specific invoice amounts side by side.
Compare in the Calculator →