Let me start by saying that the way you choose to process payments is going to depend on the type of business you have. If your business model relies heavily on recurring payments, then you may be better off with a merchant account. However, if your primary focus is customer acquisition or selling high-ticket products (think weddings or large medical expenses), then Stripe should be your go-to option.
The best way to avoid this is by having a merchant account.
A merchant account is a service that allows you to accept credit card payments online. It’s important to note that there are many different types of merchant accounts, each with its own perks and disadvantages. Some providers offer more security than others, but all will help ensure your business is protected from fraud and chargebacks.
A good way to avoid this issue is by choosing a provider who offers an integrated solution across multiple payment platforms (e-commerce). This means that once you’ve signed up for one account, all your other services will be accessed through one login instead of having them spread across multiple providers—which can be confusing if not difficult!
It’s also important not only how much money they charge per month (which varies based on how many transactions they process), but also what kind of fees they have associated with processing those transactions (such as transaction fees).
If that’s your business model, you’d be well-advised to look into merchant accounts.
If that’s your business model, you’d be well-advised to look into merchant accounts. Merchant accounts are for businesses that sell products or services and accept credit cards as part of their business model.
If you want to accept credit cards but don’t want to pay the fees associated with processing payments through Merchant Account Vs Stripe, a merchant account will make it easier for you to do so while still keeping costs down (since there aren’t any fees). It’s also more secure than accepting directly through these platforms because they’re usually built around giving customers peace-of-mind while they shop online.
Stripe offers a flat per-transaction rate of 2.9% plus 30 cents, as well as 0.4% for international charges and 1% for American Express transactions.
Stripe charges a flat rate of 2.9% plus 30 cents, as well as 0.4% for international charges and 1% for American Express transactions.
Square has a flat rate that’s higher than Stripe’s; it also charges fees for international transactions (0.55%) and American Express (3%).
In terms of fees, Square charges 2.75% for swiped, dipped or tapped payments and 3.5% plus 15 cents for manually entered ones
The good news is that both companies charge 2.75% plus 15 cents per transaction, which works out to be the same flat rate. In other words, if you’re making $10 in sales and have a $100 sale on your app or website, you’ll pay Square 2.75% of that total—$2.50—and Stripe 3.5% plus 15 cents ($0.30) for the same amount of money being sent from your credit card processing account to theirs (or vice versa).
But there’s one big difference between these two services: Square charges more when its customers make manual entries into their accounts with their smartphones or tablets (as opposed to using an online terminal). It’s not uncommon for customers who use this feature often enough to start getting charged more than they would have otherwise paid without it—because so many people use it all the time now!
If this sounds like something that might be worth considering for your business model then check out our guide on how much does it cost per transaction?
If you choose to pay off your credit card before the end of the month, Stripe merchant account will charge you $15. This fee is only applicable if you use a credit or debit card and make a payment online. You can avoid this fee by setting up a payment schedule or waiting until the end of each billing cycle to pay off your bill.
Their transaction fees are on a scale, starting at 2.6% plus 5 cents and going up from there depending on average monthly volume of sales, annual sales and currency exchange rates (for those selling internationally or in different currencies).
As you can see, the fees are based on a number of factors including:
- The average monthly volume of sales. This is how many transactions your store makes in a given month. For example, if you sell $1 million worth of products every month and average 1 transaction per day (let’s say), then it would take 24 days for that transaction fee to drop from 2.6% plus 5 cents to 0%.
- Currency exchange rates at the time when the sale occurred (if you’re selling internationally or in different currencies).
You want to process both high ticket items and recurring payments
If you want to accept high ticket items and recurring payments, you’ll want a merchant account that offers both options. A merchant account allows you to process credit cards and debit cards, in addition to other payment methods like checks and ACH transfers. This is especially important if your business involves selling expensive goods or services—you may not be able to afford the fees associated with accepting cash payments from customers who only have credit cards on their accounts!
A merchant account also lets you accept different currencies across multiple countries as well as single currencies within each country (which is helpful if one of your products has different prices depending on where it’s being sold). Finally, having multiple types of payment methods available means that there’s no limit on how much money can come through at any given time—so long as people have accounts with those banks/credit unions/etc., they can pay!
We hope we’ve helped you decide which type of account is right for your business. If you’re like us, then the decision will be based on what works best for your specific needs and goals. You may want to consider using both Stripe and Square on different projects to see how each service would work before committing to one or the other.