PayPal or Square: Which One Is The Right One for Your Business?

Just a few years ago, it was difficult for a small business to take credit cards. You not only had to buy the processing equipment itself, but you had to be willing to set up an account with an overpriced processor. These days, though, that has changed thanks to mobile credit card processing technology from companies like Square and PayPal Here. Both of these offer some serious advantages to merchants. Here’s a quick overview if you’re trying to decide which service is right for you.

Square charges a 2.75% fee for each swipe. PayPal charges just 2.70% per swipe. In the even that you manually enter a credit card transaction, both companies charge 3.5%, and a $.15 fee per transaction. You can also only deposit $1000 per week with those manual entries. If you go over that, the additional amount has to be held for 30 days before they release it to you. In both cases, the initial equipment is free.

As far as customer service, Square has had some real issues to date, and PayPal Here has only just launched, so it’s a bit tough to tell which will be better. To date, both services seem to be fairly equal, so it’s all in the details as far as what will work for your business.