The Scenario
When Dana’s candle business started selling online, she added PayPal at the end of checkout because a friend said customers expect it. Then she added Stripe for subscriptions. Then she started doing weekend markets and bought a Square reader. At the end of the year, her bookkeeper found payouts scattered across three platforms with three different fee lines - and Dana could not say which processor was actually costing her the most.
The three big processors each have a sweet spot. The mistake is using them interchangeably instead of by design.
Who This Guide Is For
This is for owners who accept payments online, in person, or both, and want to know which processor should be primary. If you sell only in person, focus on the Square section. If you sell only online, read Stripe and PayPal closely.
What to Look For
- Where you sell. Online checkouts, subscriptions, invoices, and in-person terminals are different products, and each processor leads in one or two of them.
- Fee structure. Compare flat rates, international fees, currency conversion, and chargebacks - the pricing page tells the real story.
- Payout speed and hold policies. Some processors hold funds during underwriting or disputes; know your cash flow sensitivity.
- Integrations. The processor should connect to your bookkeeping, store, and bank account with minimal fuss.
The Options
Stripe: the online-and-subscription leader
Stripe handles card payments, digital wallets, subscriptions, and invoicing with a developer-friendly platform and a straightforward pricing model. It is the industry standard for online businesses, from storefronts to SaaS, and its global reach covers payouts in 135+ currencies.
Best for: online stores, subscription businesses, and custom checkouts. If you are building the product side of a website, our payment setup guide pairs well with this choice.
PayPal: the trust-and-familiarity option
PayPal is the payment method millions of buyers already have. Adding it as a checkout option increases conversion for some audiences, and its invoicing and money-request tools are genuinely useful for service businesses. Fees are competitive on standard transactions but add up on international and currency-converted payments.
Best for: marketplaces, international buyers, and service businesses that invoice clients who prefer PayPal.
Square: the in-person and retail specialist
Square combines a free point-of-sale app, free card readers, flat-rate processing, and retail features like inventory and customer directories. For markets, stalls, and storefronts, nothing on this list is easier to set up. Square also offers online checkout and invoices, but its strength is where the register is.
Best for: pop-ups, markets, and retail - see our pop-up payments guide for the full setup.
What Not to Overpay For
- A processor mismatch. Using Square for a custom online checkout means fighting the platform; using Stripe at a market stall means buying hardware you could avoid.
- Multiple processors without reconciliation. Each platform is another payout stream to reconcile. If you use two, connect both to your bookkeeping from day one.
- Ignoring holds. New businesses can face rolling reserves or hold periods. Keep a cash buffer and read the underwriting terms.
- Choosing on fees alone. A 0.3 percent fee difference matters less than conversion, settlement speed, and how many hours the platform saves you.
What to Buy
Start with Stripe if you sell online or run subscriptions. Add PayPal as a second option at checkout if your customers expect it. Use Square for anything in person - markets, pop-ups, or a storefront. Connect whichever you choose to your bookkeeping immediately, and review the fee lines quarterly so the platforms stay a deliberate choice rather than a drift.