Last update at December 2, 2020
Setting up a new small business can be quite the hassle, and a very stressful time. With all the decisions that you need to make, you always feel like, if you make one mistake, it could be all over. Whenever you make a sale, you need a good payment processor in order to ensure you can securely receive the money, have lots of features to manage said money, and avoid having to pay too much in fees. Below will be a comparison of two of the big payment processors and point of sales platforms: Square Vs Paypal.
Point of Sales Software Comparison
When it comes to Square Vs Paypal, Square is the one most able to compete with Paypal as a household name. Both selections have free and paid versions of software, the main difference being that Square has a more robust selection of point of sale software for offline transactions. Square’s free version of their software works with a mobile device, or their Square register hardware, and offers a full range of tools for managing a business, from credit card processing to inventory management. You can manage almost all aspects of your business from the Square software, including employee management. Their paid software options include additional tools, depending on whether you are running a retail store (inventory alerts and tracking, customer service options, exchanges and returns processing, etc.), or a restaurant (seating tracking, table maps, dining opinions, repeat orders, check splits, etc.), with different tiers of payment depending on your business size or need. For online options, there is Square Payments, which has a similar transaction cost to Paypal.
When it comes down to Square vs Paypal, Paypal has POS software as well: a mobile app known as PayPal Here, which can be used on any mobile device to turn it into a POS terminal for your offline business. PayPal Here includes the ability to customize your business profile and receipts, record cash and check transactions, send invoices directly to customers, and calculate taxes. It includes the ability to create customized product lists for easy checkout for customers and employees as well as a few employee management options. Paypal also has a selection of online payment options, PayPal Checkout, PayPal Payments Standard, and PayPal Payments Pro. These allow you to add payment options directly to your business website, and each tier has an increasing number of features.
Point of Sales Hardware Comparison
In the comparison between Square Vs Paypal, both companies offer a range of hardware to pair up with their software. This includes card readers of varying types: magstripe, chip + magstripe, chip + contactless payment. Square has the additional option of a stand for an iPad for running a POS countertop in store, as well as an all-inclusive Square Register. Paypal has no countertop or full-service POS hardware solutions at this time.
Payment Processor Comparison
Square Vs Paypal, in terms of payment processors, have similar cost structures per transaction.
• Square: 2.75% for swiped transactions, 3.5% + $0.15 for keyed transactions. Online transactions at 2.90% + $0.30. Deposits to your bank account in 2 business days, or 1% extra fee for instant deposits.
• Paypal: 2.9% + $0.30 for online transactions, 2.7% for swiped, 3.5% + $0.15 for keyed transactions. Virtual terminal 3.1% + $0.30. Instant transfer to a bank account is 1% of transfer amount. 1.5% for cross border transactions, $20 for change back assessment fee. 5% + $0.03 for microtransactions with low volume sales under $10. Paypal has its own gateway called Paypal Flow for $0.10 per transaction or $25 per month.
Square Vs Paypal
Trying to choose between Square Vs Paypal can be difficult, but for the most part, if you are looking for a robust countertop all-inclusive point of sale system, Square will be your best bet—especially if you are running a retail store or restaurant. If your business is primarily online, then Paypal may be your best choice because it is most ubiquitous, and you can supplement it with occasional in-person payments with Paypal Here.
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