Best Payment Processing Platforms: Stripe vs Square vs Paddle vs Adyen vs PayPal
Card fees, in-person rates, dispute fees, payouts, subscriptions and merchant of record options checked on each vendor's site - five payment platforms side by side.
Best overall: Stripe
Stripe is our pick for most online businesses: 2.9% + 30¢ per domestic card payment with no setup or monthly fees, in-person payments at 2.7% + 5¢, subscription billing, flexible payouts and an optional merchant of record service. Square is the better fit if most of your sales happen in person, Paddle suits software companies that want sales tax handled for them, Adyen is built for large enterprises selling across many countries and channels, and PayPal makes sense when your customers expect to pay with PayPal or Venmo.
Side-by-side comparison
Every tool scored on the same criteria. Hover a column to focus it, or show only the rows where they differ.
| 5 tools compared | ★ Our pick Stripe | Square | Paddle | Adyen | PayPal | Ad space Your tool here |
|---|---|---|---|---|---|---|
| Our score | 9.3 | 8.9 | 8.7 | 8.5 | 8.1 | Get your tool into this table Shown next to the top 5 payment processing tools, labeled as sponsored. Advertise here $149/mo |
| Starting price | 2.9% + 30¢ online | 2.6% + 15¢ in person | 5% + 50¢ all-inclusive | Fixed fee + payment method fee | 3.49% + 49¢ (PayPal Checkout) | |
| Best for | Online businesses & SaaS | Shops, restaurants & in-person sales | SaaS & software companies | Large enterprises selling globally | Stores whose customers pay with PayPal | |
| Online card fee (US) | 2.9% + 30¢ | 3.3% + 30¢ (API 2.9% + 30¢) | 5% + 50¢ (all-inclusive) | $0.13 + Interchange++ + 0.60% | 2.99% + fixed fee (cards) | |
| In-person card fee | 2.7% + 5¢ | 2.6% + 15¢ | Digital products only | Yes (terminals) | - | |
| International cards | +1.5% (+1% conversion) | - | - | - | Extra percentage fee | |
| Monthly fee | None | None on Free plan | None | None (minimum invoice applies) | - | |
| Dispute fee | $15 | No Square fee | - | - | - | |
| Payouts | Daily, weekly or monthly | Next business day | Monthly ($100 minimum) | Flexible, multi-currency | - | |
| Subscriptions | Billing, 0.7% of volume | Subscriptions API | Included | - | - | |
| Merchant of record (sales tax) | Managed Payments (+3.5%) | - | Yes, 100+ tax jurisdictions | - | - | |
| Visit site | Visit site | Visit site | Visit site | Visit site |
Prices and features were checked on each vendor's official website on Nov 11, 2026. Prices are in USD as shown there; promotions, taxes and regional pricing can change them. Where we could not confirm a detail on the vendor's own site, we show "-" instead of guessing. Our scores are editorial judgments.
Detailed reviews
What each tool does best, where it falls short, and who should pick it.
1. Stripe
Payments platform for online and in-person sales
Stripe's standard US pricing is 2.9% + 30¢ per successful domestic card payment, plus 1.5% for international cards and 1% when currency conversion is needed, with no setup, monthly or closure fees. In-person payments through Stripe Terminal cost 2.7% + 5¢, ACH Direct Debit is 0.8% capped at $5, and each dispute costs $15. Stripe Billing for subscriptions is 0.7% of billing volume, Stripe Tax is priced separately, and Managed Payments, Stripe's merchant of record option, adds 3.5% per transaction. Payouts can be daily, weekly or monthly.
+ Pros
- No setup, monthly or closure fees on standard pricing
- Online, in-person (Terminal) and ACH payments in one account
- Cardholder support in 195+ countries and 135+ currencies
- Optional merchant of record service (Managed Payments)
- Cons
- Subscriptions (Billing) and tax (Stripe Tax) cost extra
- Radar for Fraud teams is priced separately
- First payout typically takes 7-14 days
2. Square
Point of sale and payments for in-person sellers
On the Square Free plan, which has no monthly subscription, in-person card payments (tap, dip or swipe) cost 2.6% + 15¢ and online payments or invoices cost 3.3% + 30¢. Payments through Square's online API are 2.9% + 30¢, and manually keyed cards or cards on file are 3.5% + 15¢. Square lists no fee for chargebacks or dispute management, the magstripe reader is free, and you can take payments with Tap to Pay on iPhone or Android without extra hardware. Payments taken before 5 PM PT arrive the next business day; instant transfers cost 1.95%.
+ Pros
- Free plan with no monthly subscription
- No Square fee for chargebacks or dispute management
- Next-business-day deposits, or instant transfers for 1.95%
- Free magstripe reader and Tap to Pay on iPhone and Android
- Cons
- Online and invoice payments are 3.3% + 30¢ on the Free plan
- Keyed-in and card-on-file payments are 3.5% + 15¢
- Plus and Premium plans are priced per location
3. Paddle
Merchant of record for software and digital products
Paddle charges 5% + 50¢ per checkout transaction with no monthly fees, and acts as your merchant of record: it registers for, charges and remits sales tax in over 100 jurisdictions, and its pricing includes fraud protection, chargeback handling and buyer support. Subscriptions, checkout, payments and reporting are part of the platform, invoice payments by bank transfer cost 3.5%, and you can contact Paddle for custom pricing on products under $10. Paddle sells software and digital content, supports 30 currencies, and pays out monthly by the 15th once you have earned at least $100.
+ Pros
- Sales tax and VAT handled for you as merchant of record
- Subscriptions, checkout and fraud protection included in the fee
- Card, PayPal, Apple Pay, Google Pay and local payment methods
- SDKs for Node.js, PHP, Go and Python
- Cons
- 5% + 50¢ is higher than standard card processing
- For software and digital products, not in-person sales
- Payouts are monthly, with a $100 minimum
4. Adyen
Enterprise payments across online, in-app and in-person
Adyen charges a fixed processing fee per transaction (shown as $0.13 on its pricing page) plus a fee that depends on the payment method; for Visa and Mastercard that is Interchange++ plus 0.60%. There are no setup, monthly, integration or closure fees, but Adyen applies a minimum invoice depending on industry or business model, and it calls the listed fees indicative. One integration covers online, in-app and in-person payments, with 200+ payment methods, settlement in multiple currencies and the Protect risk product.
+ Pros
- Online, in-app and in-person payments in one integration
- 200+ payment methods
- No setup, monthly, integration or closure fees
- Interchange++ pricing shows the card network costs per transaction
- Cons
- Minimum invoice depending on industry or business model
- Listed fees are indicative; final pricing comes from sales
- Built for enterprise volume rather than small businesses
5. PayPal
PayPal and Venmo checkout for online stores
PayPal's US fee page lists PayPal Checkout, Pay with Venmo and PayPal Guest Checkout at 3.49% plus a fixed fee of $0.49 for domestic payments, and standard credit and debit card payments at 2.99% plus a fixed fee. International commercial payments add a percentage-based fee on top. We could not read PayPal's full fee table on November 11, 2026, so the dispute fee, payout times and other details are shown as "-" - check PayPal's fee page before you decide.
+ Pros
- Customers can pay with their PayPal balance or Venmo
- Guest checkout for customers without a PayPal account
- Card payments at 2.99% plus a fixed fee
- Cons
- PayPal Checkout is 3.49% + $0.49, more than standard card rates
- Extra percentage fee on international commercial payments
- Fee table split by product and currency, harder to compare
How we compared
We checked every fee and feature in this article on each vendor’s own website on November 11, 2026, using US pricing where the vendor lists it. PayPal’s fee page could not be read in full, so for PayPal we only list the rates we could confirm on paypal.com and show the rest as ”-”. Where any vendor’s site did not confirm a detail - for example Adyen’s chargeback fee or Square’s paid plan prices - the table shows ”-”. The scores are our editorial judgment, weighted toward total cost, features included in the base fee and ease of setup.
Card fees change and can depend on your country, business type and volume. Always confirm the current rates on the vendor’s pricing page before you sign up.
How to choose a payment processing platform
- Where you sell. Mostly in person? Square’s Free plan (2.6% + 15¢) and free reader are hard to beat. Mostly online? Stripe’s 2.9% + 30¢ with no monthly fee is the usual starting point.
- Sales tax and VAT. If you sell software or digital products worldwide and don’t want to register for tax in many countries, a merchant of record like Paddle (or Stripe Managed Payments) takes that work off your hands - at a higher fee.
- International customers. Check the extra charges for international cards and currency conversion (at Stripe, +1.5% and +1%), not just the headline rate.
- Subscriptions. Paddle includes billing in its fee; Stripe Billing adds 0.7% of billing volume.
- Disputes. Stripe charges $15 per dispute, while Square lists no fee for chargebacks. If you expect disputes, this adds up.
- Payout speed. Square pays out the next business day, Stripe on a daily, weekly or monthly schedule, and Paddle monthly.
- Volume. At high volume, Interchange++ pricing (Adyen) shows the real card network costs and can work out cheaper, but expect a sales process and a minimum invoice.
Other tools worth a look Sponsored
Frequently asked questions
What is a payment processing platform?
It's the service that lets your business accept card and other payments, online or in person, and moves the money to your bank account. It charges a fee per transaction and usually adds tools for subscriptions, invoices, fraud checks and disputes.
Which payment processor has the lowest fees?
For standard US online card payments, Stripe charges 2.9% + 30¢ and Square's online API is also 2.9% + 30¢. For in-person payments, Square's Free plan is 2.6% + 15¢ and Stripe Terminal is 2.7% + 5¢. Adyen uses Interchange++ pricing, which can be lower at high volume. Paddle's 5% + 50¢ includes sales tax handling, fraud protection and chargeback handling.
What is a merchant of record?
The merchant of record is the company that legally sells to your customer, so it collects and pays sales tax and VAT and handles chargebacks. Paddle works this way by default. Stripe offers it as Managed Payments for an extra 3.5% per transaction. With Square, Adyen and PayPal you are the seller and handle tax yourself.
Which payment processor is best for subscriptions?
Paddle includes subscriptions in its 5% + 50¢ fee and also handles sales tax. Stripe Billing costs 0.7% of billing volume on top of payment fees and works with Stripe Tax. Square offers a Subscriptions API.
How fast do I get paid?
Square deposits payments taken before 5 PM PT the next business day, or instantly for a 1.95% fee. Stripe pays out daily, weekly or monthly, with the first payout typically within 7-14 days. Paddle pays monthly by the 15th once your balance is at least $100. Adyen lets you choose when and in which currency to settle.
Prices and features were checked on Nov 11, 2026 and can change at any time. Some links may be affiliate links; this never affects our scores. Placements marked “Sponsored” are paid and are never ranked or scored. Products marked “Paid inclusion” were added at the vendor's request and scored like every other product. How we make money →