When it comes to payment gateways for eCommerce stores, there are a lot of options to choose from.
Two of the most popular choices are Stripe and Square. But which one is the best? In this article, we will compare the two and see which one comes out on top.
What is a Payment Gateway?
A payment gateway is a service that allows you to accept credit card payments online. It acts as a middleman between your eCommerce store and the credit card companies and is responsible for processing the payments. Payment gateways are important for eCommerce because they provide a secure way to accept payments online.
They are also important because they can help to increase sales by making it easier for customers to pay. With that said, let’s discuss two of the most popular payment gateways: Square and Stripe.
What is Square?
Square is a payment processing company that offers businesses a way to accept credit and debit card payments. It also offers other features such as invoicing, point-of-sale (POS) solutions, and business loans.
What is Stripe?
Stripe is a payment processing company that offers businesses a way to accept credit and debit card payments. It also offers other features such as fraud detection, recurring billing, and merchant accounts.
Square vs Stripe: Main Features
Now that we know a little bit about each company, let’s compare them side by side.
- Fees: When it comes to fees, Stripe has the upper hand. It charges a flat rate of % for all transactions, while Square charges % + $0.30 per transaction.
- Payout Time: Stripe also wins when it comes to payout time. It deposits funds into your account within two business days, while Square takes up to four business days.
- Supported Countries: Stripe is available in over 20 countries, while Square is only available in the US, Canada, UK, Ireland, Japan, and Australia.
Who is Each Payment Gateway Best For?
Now that we’ve compared the two payment processors, let’s see who each one is best for.
Square is a good choice for businesses that:
- Are based in the US, Canada, UK, Ireland, Japan, or Australia
- Need to process payments quickly
- Have a lower volume of transactions
On the other hand, Stripe is a good choice for businesses that:
- Are based in any country other than the US, Canada, UK, Ireland, Japan, or Australia
- Don’t mind waiting a few extra days for funds to be deposited into their account
- Have a higher volume of transactions
How to Choose the Best Payment Gateway for Your Online Store
Choosing the right payment gateway for your eCommerce business is crucial. You need to make sure that you choose a gateway that is available in your country, offers fast payouts and has low fees.
You also need to consider whether you need any of the extra features that each gateway offers.
In the end, it really comes down to personal preference and which gateway works best for your business.
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