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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 FlowHaxa Editorial TeamFigures checked October 13, 2026Link disclosure. Every provider link on this page is marked rel="sponsored". Right now none of them is a tracked partner link, so each button goes straight to the provider’s own site and FlowHaxa 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 its in-person rates are lower than its online rate.
- Best if buyers expect PayPalPayPal, but its checkout button costs more than its card rate.
- Small ordersThe fixed fee matters more than the percentage. Check the table below before assuming 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%. | Businesses with 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. | Owners who also take cards at markets, pop-ups or in a shop |
| 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. | Customers who 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 sign up.
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. The lowest cost in each column is bold.
Provider by Provider
Stripe
Flat rate, built for custom sites
Best for: Businesses with their own site or a custom checkout
- Pro: No setup or monthly fees on standard pricing
- Pro: Lowest headline online rate here
- Pro: Strong developer tools
- Con: Extra fees for international cards and conversion
- Con: $15 per dispute even if you win
Square
Online and in person under one roof
Best for: Owners who also take cards at markets, pop-ups or in a shop
- Pro: Free plan with no monthly cost
- Pro: Lower in-person rates
- Pro: Invoices and online sales in one account
- Con: Highest online rate on the free plan
- Con: Paying $49 a month only helps at higher volume
PayPal
The button shoppers already trust
Best for: Customers who want to pay with a PayPal balance
- Pro: Buyers recognise it, which may help conversion
- Pro: No monthly fee on standard payments
- Pro: Invoices accept PayPal and cards
- Con: Highest fixed fee, which hurts small orders
- Con: Three different dispute fee levels
These buttons are sponsored links that go straight to each provider’s own site. Read the disclosure.
Give Processing Fees Their Own Line in Your Forecast
Processing fees grow with your sales, so they belong in a cash flow forecast as a percentage of card inflows, not as a flat monthly cost. If you expect $20,000 of card sales next month at roughly 3% plus a fixed fee per sale, plan for about $600 plus the fixed fees to leave before the money reaches your bank.
Our guide to reducing payment processing fees covers the levers beyond picking a provider, such as nudging larger invoices toward bank transfer.
Small Orders Change the Answer
The percentage gets the attention, but the fixed fee decides small orders. On a $30 sale, PayPal's card rate costs about 22¢ more than Stripe's. On a $500 sale the gap grows to about 64¢. Neither number looks dramatic until you multiply it by a month of orders.
If most of your sales are small, run your own average order through the table above rather than trusting the headline rate.
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 erases the margin on that sale and then some. Keep a small cushion in your operating account for the odd dispute.
Check Payout Timing Before You Commit
We did not compare payout speed here. It depends on your account history and the provider's own risk checks, and it changes. For cash flow it matters as much as the rate: money that lands in one day instead of three changes how tight a week feels. Ask each provider what your payout schedule would be, and put that delay in your forecast.
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 businesses do. A common setup is one provider for cards plus a PayPal button for buyers who prefer it. Label each payout when it lands in your bank account so the books stay clean.
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 Reading
FlowHaxa is an educational publisher, not a bank, lender or financial adviser. Read our disclaimer, and check large decisions with your accountant.