Platform Overview

Square

Square charges 2.6%+$0.10 for in-person, 2.9%+$0.30 for online, 3.5%+$0.15 for invoiced payments. Free POS software with hardware from $0.

PayPal

PayPal charges 2.9%+$0.30 for online/card-present, with Zettle offering 2.29%+$0.09 for in-person. Monthly fees from $0.

Fee Comparison Table

Fee Type Square PayPal Notes
In-Person Rate 2.6% + $0.10 (Square) 2.29% + $0.09 (Zettle) PayPal Zettle is cheaper for in-person
Online/Card-Present 2.9% + $0.30 2.9% + $0.30 Identical rates
Invoiced Rate 3.5% + $0.15 2.9% + $0.30 PayPal is cheaper for invoicing
POS Software Free with Square Zettle app (free) Comparable POS options
Hardware Cost $0-$299 $0-$299 Both offer free and paid hardware

Key Takeaways

What to Consider

  • Platform fees are only part of the equation — factor in fulfillment, shipping, and your time.
  • Consider your product type and target audience when choosing the right platform.
  • Use our Profit Calculator to estimate exact costs.

🏆 Overall Winner

Square wins for in-person — 2.6%+$0.10 vs PayPal's 2.9%+$0.30. Online, both are comparable at 2.9%+$0.30.

Frequently Asked Questions

Which is cheaper for in-person payments?

PayPal Zettle at 2.29%+$0.09 is cheaper than Square at 2.6%+$0.10 for in-person.

Which is better for online sellers?

Both are equivalent for online at 2.9%+$0.30. Square offers a more integrated online store.

Can I use both Square and PayPal?

Yes, many businesses use multiple processors for different use cases or to compare rates.

Bottom Line

PayPal Zettle is slightly cheaper for in-person; equivalent for online.