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
5.4
#9 of 16 with enough data
Stripe
Stripe's flat-rate processing: 2.7% + 5¢ in person with Stripe Terminal, 2.9% + 30¢ online and 3.4% + 30¢ keyed in, with no monthly, PCI or closure fees, month to month. Deposits take two business days (instant payouts 1.5%). It has no restaurant POS of its own: restaurants use it through POS systems built on Stripe.
Key differences
| Data point | PayPal POS | Stripe |
|---|---|---|
| In-person rate | 2.29% | 2.7% |
| In-person fee per transaction | 9¢ | 5¢ |
| Online rate | 2.99% | 2.9% |
| Online fee per transaction | 49¢ | 30¢ |
| Keyed-in rate | 3.49% | 3.4% |
| Keyed-in fee per transaction | 9¢ | 30¢ |
| Chargeback fee | $20 | $15 |
| Price of a countertop terminal | $199 one-time | $299 one-time |
| Works with these restaurant POS | None | 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 | StripeRTC Score: 5.4 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: Stripe (opens in a new tab)A payment company with one published flat rate for every business on standard pricing. |
| Pricing model | Flat rateSource: PayPal (opens in a new tab) | Flat rateSource: Stripe (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: Stripe (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: no closure fees, stated) 20; other fees 20 (disputes, instant payouts, international cards and Tap to Pay are on the pricing page). |
| Card rates | ||
| In-person rate | 2.29%(Best value)Source: PayPal (opens in a new tab) | 2.7%Source: Stripe (opens in a new tab)With Stripe Terminal readers. Tap to Pay on a phone adds 10¢ per authorization. |
| In-person fee per transaction | 9¢Source: PayPal (opens in a new tab) | 5¢(Best value)Source: Stripe (opens in a new tab) |
| Online rate | 2.99%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¢. | 2.9%(Best value)Source: Stripe (opens in a new tab) |
| Online fee per transaction | 49¢Source: PayPal (opens in a new tab) | 30¢(Best value)Source: Stripe (opens in a new tab) |
| Keyed-in rate | 3.49%Source: PayPal (opens in a new tab) | 3.4%(Best value)Source: Stripe (opens in a new tab)2.9% plus the 0.5% for manually entered cards. |
| Keyed-in fee per transaction | 9¢(Best value)Source: PayPal (opens in a new tab) | 30¢Source: Stripe (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: Stripe (opens in a new tab)One rate for every domestic card, American Express included. |
| American Express rate | N/ASource: PayPal (opens in a new tab)Doesn't apply: American Express costs the same as other cards. | N/ASource: Stripe (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. | N/ASource: Stripe (opens in a new tab)Doesn't apply: one published rate for any volume. Stripe offers custom pricing (including interchange-plus) for large volumes, only by quote. |
| Monthly and other fees | ||
| Monthly account or plan fee | $0/moSource: PayPal (opens in a new tab)No monthly fee. | $0/moSource: Stripe (opens in a new tab)Pay as you go, with no monthly fee. |
| 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: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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: Stripe (opens in a new tab)No recurring program or compliance fee per reader. Cellular data on readers that use it is optional, at $10 a reader a month. |
| 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: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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. | $0/moSource: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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: Stripe (opens in a new tab)Stripe says it charges no monthly or other hidden fees and lists every standard fee on its pricing page; none of them is this one. |
| 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). | $15(Best value)Source: Stripe (opens in a new tab)Plus $15 for each dispute you respond to manually, which you get back if you win. |
| 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 +1.5%; currency conversion +1%; Tap to Pay on a phone +10¢ per authorization; optional point-to-point encryption +5¢ per authorization; cellular data $10 a reader a month; $15 for each dispute you respond to manually (returned if you win); Smart Disputes 30% of the disputed amount when you win.Source: Stripe (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: Stripe (opens in a new tab)You buy the readers from Stripe, or take contactless payments on a phone with Tap to Pay. |
| 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: Stripe (opens in a new tab)Stripe Reader S700 (countertop smart reader). The Stripe Reader M2 mobile reader is $59. |
| 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: Stripe (opens in a new tab)Stripe sells its readers at a listed price; it doesn't publish a lease. |
| Equipment lease term | N/ASource: PayPal (opens in a new tab)Doesn't apply: no lease. | N/ASource: Stripe (opens in a new tab)Doesn't apply: no lease. |
| 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). | N/ASource: Stripe (opens in a new tab)Doesn't apply: Stripe doesn't offer readers at $0 upfront. |
| Equipment only works with this processor | YesSource: PayPal (opens in a new tab) | YesSource: Stripe (opens in a new tab)Stripe's readers work with Stripe accounts (through Stripe Terminal), not 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%. | Two business daysSource: Stripe (opens in a new tab)Default US settlement is two business days. Your first payout takes 7 to 14 days, depending on your industry and risk level. Instant Payouts cost 1.5%. |
| Instant payout fee | 1.5%Source: PayPal (opens in a new tab)Minimum 50¢ per instant transfer. | 1.5%Source: Stripe (opens in a new tab)Minimum 50¢ per instant payout. |
| 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) | Stripe can set up a reserve with a notice of its terms and hold it to cover what you may owe (disputes, refunds); it sizes reserves by risk and pays them out when the reserve term ends. It can also delay or withhold payouts for disputes.Source: Stripe (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: Stripe (opens in a new tab)Month to month, with no closure fee: the agreement runs until you or Stripe end it, and you end it by closing your account in the Dashboard. |
| Automatic renewal | Month to monthSource: PayPal (opens in a new tab)No term to renew. | Month to monthSource: Stripe (opens in a new tab)No term to renew. |
| Notice to avoid renewal | N/ASource: PayPal (opens in a new tab)Doesn't apply: no term to renew. | N/ASource: Stripe (opens in a new tab)Doesn't apply: no term to renew. |
| 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: Stripe (opens in a new tab)You end the agreement by closing your account in the Dashboard; 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: Stripe charges no closure fee.Source: Stripe (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: Stripe (opens in a new tab)No closure fee, per Stripe. |
| Liquidated damages clause | NoSource: PayPal (opens in a new tab)No clause charges you for the months left: there's no minimum term. | NoSource: Stripe (opens in a new tab)No clause charges you for the months left: the agreement has no minimum term. |
| 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: Stripe (opens in a new tab)At least 30 days' notice of any fee increase; since the agreement has no term and no closure fee, you can leave before it applies. |
| 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) | Stripe can change its fees with at least 30 days' notice of any increase or new fee.Source: Stripe (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. | UnconfirmedSource: Stripe (opens in a new tab)The agreement has no personal guarantee clause; if you're a sole proprietor, you and the person who applies are both bound by it. |
| 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. | NoSource: Stripe (opens in a new tab)Stripe's terms allow surcharging only where card network rules and the law permit it, but Stripe doesn't publish a dual pricing, surcharge or cash discount program for US merchants. |
| Cards the program covers | N/ASource: PayPal (opens in a new tab)Doesn't apply: no program. | N/ASource: Stripe (opens in a new tab)Doesn't apply: no program. |
| Monthly fee for the program | N/ASource: PayPal (opens in a new tab)Doesn't apply: no program. | N/ASource: Stripe (opens in a new tab)Doesn't apply: no program. |
| 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. | OthersSource: Stripe (opens in a new tab)Stripe Terminal works with third-party POS systems built on Stripe; Stripe doesn't list any of the restaurant POS systems on our list. |
| 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: Stripe (opens in a new tab)Stripe has no restaurant POS of its own; it works through POS systems and apps built on Stripe. |
| Monthly volume it's built for | $0/moSource: PayPal (opens in a new tab)No minimum volume or monthly fee. | $0/moSource: Stripe (opens in a new tab)No minimum volume: pay-as-you-go pricing for any business. |
| 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. | UnconfirmedSource: Stripe (opens in a new tab)Stripe publishes lists of prohibited and restricted businesses; it doesn't present itself as a processor for high-risk businesses. |
| 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. | UnconfirmedSource: Stripe (opens in a new tab)Stripe's pricing and docs don't say whether it routes US debit to the lowest-cost network for you. |
| 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. | YesSource: Stripe (opens in a new tab) |
| Support channels | Chat, PhoneSource: PayPal (opens in a new tab) | Phone, Chat, Email or formSource: Stripe (opens in a new tab) |
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 |
| StripeSource: Stripe (opens in a new tab) | Month to monthSource: Stripe (opens in a new tab)Month to month, with no closure fee: the agreement runs until you or Stripe end it, and you end it by closing your account in the Dashboard. | No auto-renewalSource: Stripe (opens in a new tab)No term to renew. | No early termination fee: Stripe charges no closure fee. | Stripe can change its fees with at least 30 days' notice of any increase or new fee.Source: Stripe (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.
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