RTC SCORE
4.8
#13 of 16 with enough data
PayPal POS
PayPal's point of sale (formerly Zettle): 2.29% + 9¢ in person, 3.49% + 9¢ keyed in and 2.99% + 49¢ for payment links, with no monthly fee, month to month. Sales land in your PayPal balance in minutes; moving them to your bank takes 1 to 3 business days. It only works with the PayPal POS app.
RTC SCORE
7.3
#4 of 16 with enough data
Square
Square's card processing, built into Square for Restaurants: flat rates from 2.6% + 15¢ in person on Square Free (2.5% on Plus and 2.4% on Premium), with no PCI, statement or chargeback fees, month to month and with no early termination fee. Its surcharge only covers in-person credit card sales.
Key differences
| Data point | PayPal POS | Square |
|---|---|---|
| In-person rate | 2.29% | 2.6% |
| In-person fee per transaction | 9¢ | 15¢ |
| Online rate | 2.99% | 3.3% |
| Online fee per transaction | 49¢ | 30¢ |
| Keyed-in rate | 3.49% | 3.5% |
| Keyed-in fee per transaction | 9¢ | 15¢ |
| Chargeback fee | $20 | $0 |
| Price of a countertop terminal | $199 one-time | $299 one-time |
| Instant payout fee | 1.5% | 1.95% |
| Works with these restaurant POS | None | Square, Others |
| Requires the vendor's own POS | Yes | No |
| Support channels | Chat, Phone | Phone, Chat, Email or form |
Side by side
| Feature | PayPal POSRTC Score: 4.8 out of 10 | SquareRTC Score: 7.3 out of 10 |
|---|---|---|
| Type of processor and pricing | ||
| Type of processor | Flat-rate payment company (payment facilitator)Source: PayPal (opens in a new tab)PayPal's point of sale (formerly Zettle), with one published rate per type of payment. | Flat-rate payment company (payment facilitator)Source: Square (opens in a new tab)A flat-rate payment company whose processing comes with its own POS. |
| Pricing model | Flat rateSource: PayPal (opens in a new tab) | Flat rateSource: Square Support Center (opens in a new tab) |
| Published pricing (points out of 100) | 100Source: PayPal (opens in a new tab)Same rubric for every vendor: in-person rate published 25; online and keyed rates 15; monthly fee ($0, stated) 20; early termination fee ($0: you can close the account without cost, stated in the user agreement) 20; other fees 20 (chargebacks, disputes and instant transfers are on the fee page). | 100Source: Square (opens in a new tab)In-person rate 25, online and keyed-in rates 15, plan fees 20, $0 early termination fee stated 20, other fees 20 (PCI, chargebacks, inactivity, transfers and international cards are listed). |
| Card rates | ||
| In-person rate | 2.29%(Best value)Source: PayPal (opens in a new tab) | 2.6%Source: Square (opens in a new tab)On Square Free. Square Plus is 2.5% + 15¢ and Square Premium 2.4% + 15¢. Businesses processing over $250,000 a year can ask about custom pricing. |
| In-person fee per transaction | 9¢(Best value)Source: PayPal (opens in a new tab) | 15¢Source: Square (opens in a new tab) |
| Online rate | 2.99%(Best value)Source: PayPal (opens in a new tab)Payment links paid by card, Apple Pay or another wallet. With PayPal Checkout, Venmo, Pay Later or Guest Checkout they cost 3.49% + 49¢. | 3.3%Source: Square (opens in a new tab)On Square Free. Square Plus and Square Premium charge 2.9% + 30¢ online. |
| Online fee per transaction | 49¢Source: PayPal (opens in a new tab) | 30¢(Best value)Source: Square (opens in a new tab) |
| Keyed-in rate | 3.49%(Best value)Source: PayPal (opens in a new tab) | 3.5%Source: Square (opens in a new tab)The same on every plan, also for cards on file. |
| Keyed-in fee per transaction | 9¢(Best value)Source: PayPal (opens in a new tab) | 15¢Source: Square (opens in a new tab) |
| American Express pricing | Same rate as other cardsSource: PayPal (opens in a new tab)The PayPal POS rates apply to every card; there's no separate American Express rate. | Same rate as other cardsSource: Square (opens in a new tab) |
| American Express rate | N/ASource: PayPal (opens in a new tab)Doesn't apply: American Express costs the same as other cards. | N/ASource: Square (opens in a new tab)Doesn't apply: American Express costs the same as other cards. |
| Rates by monthly volume | N/ASource: PayPal (opens in a new tab)Doesn't apply: one published rate for any volume. | No tiers by volume: the rate depends on the plan (in person, 2.6% + 15¢ on Square Free, 2.5% + 15¢ on Square Plus and 2.4% + 15¢ on Square Premium). Over $250,000 a year you can ask Square for custom pricing.Source: Square (opens in a new tab) |
| Monthly and other fees | ||
| Monthly account or plan fee | $0/moSource: PayPal (opens in a new tab)No monthly fee. | $0/moSource: Square (opens in a new tab)Square Free, $0 a month per location. Square Plus is $49 and Square Premium $149 a month per location, with lower card rates; for our reference restaurant Square Free costs less. |
| Annual fee per account | $0/yrSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0/yrSource: Square (opens in a new tab)Square publishes its full fee list (Learn about Square fees), and it has no statement, annual, batch or minimum fee: on Square Free you only pay processing fees when you take a payment. |
| Annual fees per device or location | $0/yr per deviceSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0/yr per deviceSource: Square Support Center (opens in a new tab)Square publishes its full fee list (Learn about Square fees), and it has no annual, PCI or regulatory fee per device. What it does charge per device is monthly: the KDS and Kiosk apps on Square Plus and Premium. |
| PCI compliance fee (yearly) | $0/yrSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0/yrSource: Square Support Center (opens in a new tab) |
| PCI non-compliance fee (monthly) | $0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | N/ASource: Square (opens in a new tab)Doesn't apply: Square keeps the PCI certification as merchant of record, so you don't validate your own. |
| Statement fee | $0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0/moSource: Square (opens in a new tab)Square publishes its full fee list (Learn about Square fees), and it has no statement, annual, batch or minimum fee: on Square Free you only pay processing fees when you take a payment. |
| Monthly minimum | $0/moSource: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0/moSource: Square (opens in a new tab)Square publishes its full fee list (Learn about Square fees), and it has no statement, annual, batch or minimum fee: on Square Free you only pay processing fees when you take a payment. |
| Fee per batch | $0Source: PayPal (opens in a new tab)PayPal says you only pay the transaction fee when you make a sale, with no monthly or startup fees; its fee schedule lists none of this kind for PayPal POS. | $0Source: Square (opens in a new tab)Square publishes its full fee list (Learn about Square fees), and it has no statement, annual, batch or minimum fee: on Square Free you only pay processing fees when you take a payment. |
| Chargeback fee | $20Source: PayPal (opens in a new tab)$20 for a card chargeback. Disputes on payments made through a PayPal account (PayPal or Venmo QR codes) carry a $15 dispute fee ($30 for high-volume sellers). | $0(Best value)Source: Square Support Center (opens in a new tab)Square doesn't charge for chargebacks or dispute management; you still lose the disputed amount if the customer wins. |
| Other fees | Instant transfer of your balance to a bank or debit card 1.5% (50¢ minimum); standard transfer at no cost. Cards issued outside the US add a percentage. PayPal may raise your percentage rates up to 5% with 30 days' notice if your account shows a high level of risk (complaints, reversals, chargebacks).Source: PayPal (opens in a new tab) | Cards issued outside the US: an extra 1.5%. Gift card loads: 2.5% on Square Free and Plus. Afterpay: 6% + 30¢. ACH bank transfers on invoices: 1% ($1 minimum). Instant or same-day transfers: 1.95%. KDS app: $30 a month per device on Square Plus ($20 on Premium); Kiosk app: $50 ($30 on Premium).Source: Square (opens in a new tab) |
| Equipment | ||
| How you get the equipment | You buy itSource: PayPal (opens in a new tab)You buy the card reader or the all-in-one Terminal, or use Tap to Pay on a phone. | You buy itSource: Square (opens in a new tab)You buy it, upfront or in monthly installments financed by Block (for example $27 a month for 12 months for Square Terminal). |
| Price of a countertop terminal | $199 one-time(Best value)Source: PayPal (opens in a new tab)PayPal Terminal, a portable all-in-one device with the POS app built in ($239 with a barcode scanner). | $299 one-timeSource: Square (opens in a new tab)Square Terminal, a countertop and portable card terminal. Square Register costs $899. |
| Equipment lease you can't cancel | NoSource: PayPal (opens in a new tab)PayPal sells its devices at a listed price; it doesn't publish a lease. | NoSource: Square (opens in a new tab)You buy Square's hardware; the installments are a purchase loan from Block, not a lease. |
| Equipment lease term | N/ASource: PayPal (opens in a new tab)Doesn't apply: no lease. | N/ASource: Square (opens in a new tab)Doesn't apply: Square doesn't lease its hardware. |
| Equipment at $0 upfront: what it commits you to | N/ASource: PayPal (opens in a new tab)Doesn't apply: PayPal doesn't offer devices at $0 upfront (the first reader is $29). | No equipment at $0 upfront tied to a term. Square gives you the magstripe reader at no cost and sells the rest, with optional installments.Source: Square Support Center (opens in a new tab) |
| Equipment only works with this processor | YesSource: PayPal (opens in a new tab) | UnconfirmedSource: Square (opens in a new tab)Square's hardware runs Square's own apps, but its hardware pages, sales policy and terms don't say whether it can work with another processor. |
| Getting your money | ||
| Standard deposit speed | More than two business daysSource: PayPal (opens in a new tab)Card sales land in your PayPal business balance in minutes; moving them to your bank costs nothing and takes 1 to 3 business days (about 48 hours to a debit card). We count the slowest end of that range. An instant transfer costs 1.5%. | Next business daySource: Square Support Center (opens in a new tab)Every Square merchant starts on the standard next-business-day transfer, at no extra cost: payments taken before 5 p.m. PT (8 p.m. ET) arrive the next business day, and later ones by the second business day. Instant or same-day transfers cost 1.95%. With Square Checking, your money is available right after each sale. |
| Instant payout fee | 1.5%(Best value)Source: PayPal (opens in a new tab)Minimum 50¢ per instant transfer. | 1.95%Source: Square (opens in a new tab)For instant and same-day transfers, from $25 up to $10,000 per transfer. |
| Holds and reserves | PayPal may place a reserve on a business account at any time if it sees a high level of risk, and may hold payments for review (risk-based holds usually last up to 21 days). Funds under a hold, limitation or reserve can't be withdrawn, and you can't close the account while one is in place.Source: PayPal (opens in a new tab) | Square may delay payouts or require a reserve if it considers your business risky, and it can hold chargeback amounts and delay payouts while chargebacks are pending (Payment Terms §14 and §20).Source: Square (opens in a new tab) |
| Contract and exit | ||
| Contract term | Month to monthSource: PayPal (opens in a new tab)Month to month, with no closure cost: the user agreement has no term, and you end it by closing the account (any hold, reserve, open dispute or negative balance must be settled first). | Month to monthSource: Square (opens in a new tab) |
| Automatic renewal | Month to monthSource: PayPal (opens in a new tab)No term to renew. | Month to monthSource: Square (opens in a new tab)Month to month, with no renewal term. |
| Notice to avoid renewal | N/ASource: PayPal (opens in a new tab)Doesn't apply: no term to renew. | 0 daysSource: Square (opens in a new tab)No notice: you deactivate your account. |
| Notice to cancel | 0 daysSource: PayPal (opens in a new tab)No notice period, as long as there's no hold, reserve, open dispute or negative balance. | 0 daysSource: Square (opens in a new tab)You end the agreement by deactivating your account, with no notice period. |
| Early termination fee | No early termination fee: you can close the account without cost.Source: PayPal (opens in a new tab) | No early termination fee. Subscription fees already paid are not refunded.Source: Square Support Center (opens in a new tab) |
| How the early termination fee is calculated | No early termination feeSource: PayPal (opens in a new tab) | No early termination feeSource: Square Support Center (opens in a new tab)Square lists early termination among the things it doesn't charge for. |
| Liquidated damages clause | NoSource: PayPal (opens in a new tab)No clause charges you for the months left: there's no minimum term. | NoSource: Square Support Center (opens in a new tab)No early termination fee or liquidated damages. |
| Price increases during the contract | With notice, and you can leave without a feeSource: PayPal (opens in a new tab)PayPal can change the user agreement and its fees with notice (at least 5 days for business accounts; 30 days for a risk-based rate increase); since you can close the account without cost, you can leave before a change applies. | With notice, and you can leave without a feeSource: Square (opens in a new tab)Square can change its fees with reasonable advance notice; since there is no term or early termination fee, you can leave if you don't accept the change. |
| Right to raise prices | PayPal can amend its fees at any time under the user agreement, with notice (at least 5 days for business accounts; 30 days before a risk-based rate increase of up to 5%).Source: PayPal (opens in a new tab) | Square may change its processing fees with reasonable advance notice (Payment Terms §4), and its terms at any time with the notice it considers reasonable (General Terms §2).Source: Square (opens in a new tab) |
| Personal guarantee by the signer | UnconfirmedSource: PayPal (opens in a new tab)The user agreement has no personal guarantee clause; PayPal may pull the owner's personal credit report for a business account. | No()Source: Square (opens in a new tab)Neither Square's General Terms nor its Payment Terms contain a personal guarantee by the signer. |
| Dual pricing and surcharges | ||
| Dual pricing or surcharge program | NoSource: PayPal (opens in a new tab)PayPal's POS terms forbid adding a fee for paying by card unless the law allows it, and PayPal doesn't publish a dual pricing, surcharge or cash discount program. | YesSource: Square Support Center (opens in a new tab)Credit card surcharging, in open beta in the US: in person only, credit cards only, up to 3% and never above your cost of acceptance, and not available in Connecticut, Maine, Massachusetts or Puerto Rico. Square publishes no dual pricing program. In our estimate, card processing on in-person credit card sales costs your restaurant $0 with the surcharge and your customers pay it; debit and online sales keep Square's rate. In practice part of that cost stays with you: Square charges its fee on the whole sale, including tax and tip, tips can't be surcharged, and the 3% cap can fall below Square's fee on small tickets (2.6% + 15¢ is about 3.03% of a $35 ticket). Card network rules and state laws apply. |
| Cards the program covers | N/ASource: PayPal (opens in a new tab)Doesn't apply: no program. | Credit cards only (surcharge)Source: Square Support Center (opens in a new tab) |
| Monthly fee for the program | N/ASource: PayPal (opens in a new tab)Doesn't apply: no program. | UnconfirmedSource: Square Support Center (opens in a new tab)Square's surcharge article and its fee list don't mention a fee for the program, and Square doesn't say it charges none. |
| Your POS and your business | ||
| Works with these restaurant POS | NoneSource: PayPal (opens in a new tab)PayPal's card readers work with its own POS app, not with restaurant POS systems. PayPal and Venmo QR codes can be taken through some third-party POS, but not card payments. | Square, OthersSource: Square (opens in a new tab)Processing built into Square's POS, and other POS systems too: Square's Terminal API connects another POS application to Square Terminal (see "Requires the vendor's own POS"). Same rule for every vendor: "others" when the vendor documents its processing on another POS. |
| Requires the vendor's own POS | YesSource: PayPal (opens in a new tab)Card payments in person go through the PayPal POS app (no cost to download). | No(Best value)Source: Square Developer (opens in a new tab)Square's processing comes with Square's POS, and other POS software can use it too: Square's Terminal API connects another POS application to Square Terminal, and its fee list publishes rates for payments through its APIs. Same rule for every vendor: "no" when the vendor documents a way to use its processing with another POS. |
| Monthly volume it's built for | $0/moSource: PayPal (opens in a new tab)No minimum volume or monthly fee. | $0/moSource: Square (opens in a new tab)No minimum volume. Over $250,000 a year (about $20,800 a month) Square offers custom pricing. |
| Accepts high-risk businesses | UnconfirmedSource: PayPal (opens in a new tab)PayPal's user agreement lets it limit or reserve accounts it sees as high risk; it doesn't present itself as a processor for high-risk businesses. | NoSource: Square (opens in a new tab)Square's Payment Terms list business types it doesn't serve; it isn't a high-risk specialist. |
| Routes debit to the lowest-cost network | UnconfirmedSource: PayPal (opens in a new tab)PayPal doesn't say whether it routes US debit to the lowest-cost network. | Not publishedSource: Square (opens in a new tab)Square doesn't publish how it routes debit cards; with flat pricing the routing doesn't change your rate. |
| Support | ||
| 24/7 support for merchants | UnconfirmedSource: PayPal (opens in a new tab)PayPal's assistant answers right away, but PayPal doesn't publish the hours of its live agents. | NoSource: Square (opens in a new tab)24/7 phone support comes only with Square Premium ($149 per location a month). On Square Free, phone support is 6 am to 6 pm PT on weekdays for the first 90 days; on Square Plus it's 6 am to 6 pm PT on weekdays. We score the support of the plan our cost uses (Square Free), the same for every vendor. |
| Support channels | Chat, PhoneSource: PayPal (opens in a new tab) | Phone, Chat, Email or formSource: Square (opens in a new tab)Chat and email on every plan; phone hours depend on the plan (see 24/7 support). |
Contracts compared
| Product | Initial term | Auto-renewal | Early termination fee | Price increases during the term | Trial |
|---|---|---|---|---|---|
| PayPal POSSource: PayPal (opens in a new tab) | Month to month | No auto-renewal | No early termination fee: you can close the account without cost. | PayPal can amend its fees at any time under the user agreement, with notice (at least 5 days for business accounts; 30 days before a risk-based rate increase of up to 5%).Source: PayPal (opens in a new tab) | No data |
| SquareSource: Square Support Center (opens in a new tab) | Month to monthSource: Square (opens in a new tab) | No auto-renewalSource: Square (opens in a new tab)Month to month, with no renewal term. | No early termination fee. Subscription fees already paid are not refunded. | Square may change its processing fees with reasonable advance notice (Payment Terms §4), and its terms at any time with the notice it considers reasonable (General Terms §2).Source: Square (opens in a new tab) | No data |
This is general information about published contracts, not legal advice: read your own contract and check with a lawyer before you sign.
Build your own comparisonCard processing cost calculatorHow we score