Payment processor head-to-head
Square vs PayPal
Square and PayPal both started with small sellers and both take payments online and in person, but they price them differently. PayPal's in-person and card rates are lower; Square's free next-business-day transfers, hardware and point-of-sale software are why many counters choose it anyway.
Updated October 2026. Figures from each company's published US pricing; where a figure is not published, we say so.
Square
$2.75
2.6% + 15¢
PayPal
$2.38
2.29% + 9¢
PayPal costs less at every sale size.
Quick answer
Is Square or PayPal cheaper?
In person, PayPal: 2.29% + 9¢ against Square's Free-plan 2.6% + 15¢, so $2.38 against $2.75 on a $100 sale. Online, it depends on the button: PayPal Checkout's 3.49% + 49¢ costs more than Square's 3.3% + 30¢, while PayPal's card rate of 2.89% + 29¢ costs less (published US rates, October 2026).
In-person card payment: what a $100 sale costs
Percentage plus fixed fee, as a share of a $100 sale, at each published US rate
- Anytime Capital
- Square
- PayPal
Published US rates as of October 2026. Excludes international, currency-conversion, dispute and payout fees, and any monthly plan.
Published fees
Square vs PayPal fees, line by line
| Fee | Square | PayPal | Anytime Capital |
|---|---|---|---|
| Online card rate | 3.3% + 30¢ on Free; 2.9% + 30¢ on Plus and Premium | 3.49% + 49¢ for PayPal Checkout; cards 2.89% + 29¢ to 2.99% + a fixed fee, by product | 2.75% + 30¢ (2.5% + 30¢ for your first 90 days with the launch offer) |
| In person | 2.6% + 15¢ Free, 2.5% + 15¢ Plus, 2.4% + 15¢ Premium | 2.29% + 9¢ for QR code and card payments in person | Customers scan and tap to pay on their own phone; no terminal to buy or rent |
| ACH bank payments | 1% on invoices ($1 minimum; capped at $10 on Plus and Premium) | Not published separately | ACH bank debit on payment links and invoices; current rate on the pricing page |
| International cards | Not published for 2026 | +1.5% on international commercial transactions | May carry an extra fee, shown in your dashboard before you accept the payment |
| Currency conversion | Not published | 3% spread on currency conversion (4% on some conversions) | May carry an extra fee, shown in your dashboard before you accept the payment |
| Instant payout | 1.95% of the transfer | Not published for business accounts | Instant, 24/7, to your Anytime Capital business account |
| Disputes | No dispute fee today; the processing fee is lost if you lose | $20 per chargeback | Shown in your dashboard; pre-dispute alerts can refund small payments automatically |
| Monthly fee | $0 Free, $49 Plus, $149 Premium, per location | $0 | $0: no monthly, setup or PCI fees |
US pricing as of October 2026. “Not published” means no official figure was found, not that the fee is zero.
Sale by sale
What each one costs, at every sale size
01In-person card payment
| Sale | Square2.6% + 15¢ | PayPal2.29% + 9¢ |
|---|---|---|
| $10 | $0.41 | $0.32 |
| $25 | $0.80 | $0.66 |
| $50 | $1.45 | $1.24 |
| $100 | $2.75 | $2.38 |
| $250 | $6.65 | $5.82 |
| $1,000 | $26.15 | $22.99 |
PayPal costs less at every sale size.
Square's Free plan; Plus is 2.5% + 15¢ and Premium 2.4% + 15¢. PayPal's rate covers QR code and card payments in person.
02Online card payment
| Sale | Square3.3% + 30¢ | PayPal2.89% + 29¢ | Anytime Capital2.75% + 30¢ |
|---|---|---|---|
| $10 | $0.63 | $0.58 | $0.58 |
| $25 | $1.13 | $1.01 | $0.99 |
| $50 | $1.95 | $1.74 | $1.68 |
| $100 | $3.60 | $3.18 | $3.05 |
| $250 | $8.55 | $7.52 | $7.18 |
| $1,000 | $33.30 | $29.19 | $27.80 |
PayPal costs less at every sale size.
Square's Free plan (2.9% + 30¢ on Plus and Premium) against PayPal's Expanded Checkout card rate.
03Square against the PayPal button
| Sale | Square3.3% + 30¢ | PayPal3.49% + 49¢ | Anytime Capital2.75% + 30¢ |
|---|---|---|---|
| $10 | $0.63 | $0.84 | $0.58 |
| $25 | $1.13 | $1.36 | $0.99 |
| $50 | $1.95 | $2.24 | $1.68 |
| $100 | $3.60 | $3.98 | $3.05 |
| $250 | $8.55 | $9.22 | $7.18 |
| $1,000 | $33.30 | $35.39 | $27.80 |
Square costs less at every sale size.
PayPal Checkout: the customer pays from a PayPal balance, Venmo or Pay Later.
The short version
Which to choose
Choose Square if
- You need a full point of sale: free software with inventory and staff tools, a $59 reader or a $299 terminal.
- You want free next-business-day transfers to your bank.
- You want point of sale, inventory, invoices and online payments from one vendor and one dashboard.
Choose PayPal if
- Your buyers want PayPal, Venmo or Pay Later at checkout.
- You take occasional in-person payments by QR code or Tap to Pay in the PayPal app, with no hardware to buy, at 2.29% + 9¢.
- You process cards online through PayPal's Expanded Checkout at 2.89% + 29¢.
In person, PayPal's rate against Square's system
PayPal's in-person rate is 2.29% + 9¢ for QR code and card payments, and Tap to Pay in the PayPal app needs no hardware. Square's is 2.6% + 15¢ on the Free plan, 2.5% + 15¢ on Plus and 2.4% + 15¢ on Premium. On rates alone, PayPal costs less at every sale size, on every Square plan.
What Square adds is the system around the payment: free point-of-sale software with inventory and staff tools, free Tap to Pay on iPhone and Android, Square Reader at $59 and Square Terminal at $299 or $27 a month for 12 months. For a café or shop that runs its whole counter on one system, those tools can matter more than the rate gap.
Online, it depends which PayPal button
PayPal Checkout, paid from a PayPal balance, Venmo or Pay Later, is 3.49% + 49¢, above Square's Free-plan online rate of 3.3% + 30¢. PayPal's Expanded Checkout card rate, 2.89% + 29¢, is below it, and below the 2.9% + 30¢ Square charges online on Plus and Premium.
Each brings its own wallets. Square adds Cash App Pay and Afterpay, which costs 6% + 30¢ on Plus and Premium; PayPal adds Venmo and PayPal Pay Later.
Payouts, disputes and bank payments
Square transfers sales to your bank free the next business day, with instant transfers at 1.95% of the amount. PayPal sales land in your PayPal balance and are transferred from there; PayPal does not publish an instant transfer rate for business accounts.
Square charges no dispute fee today, though the processing fee is lost on a dispute you lose; PayPal charges $20 per chargeback. For bank payments, Square charges 1% on invoices ($1 minimum, capped at $10 on Plus and Premium), and PayPal does not publish a separate ACH rate.
At a glance
The two side by side
| Square | PayPal | |
|---|---|---|
| What it is | Point of sale and payments for in-person sellers, from Block | Wallet checkout with PayPal, Venmo and Pay Later |
| Background | Founded 2009 in Oakland, California; part of Block, Inc. | Founded 1998 and launched 1999; headquartered in San Jose, California. Owns Venmo and Braintree. |
| Payout speed | Free next-business-day transfers to your bank; instant transfers for 1.95% of the amount (up to $10,000; new sellers one a day, up to $2,000) | Sales land in your PayPal balance, then transfer to your bank. PayPal does not publish a separate instant transfer rate for business accounts; its consumer fee page lists 1.75% (25¢ minimum, $25 maximum). |
| Payment methods | Cards, Apple Pay, Google Pay, Cash App Pay, Afterpay (6% + 30¢ on Plus and Premium), gift cards, ACH on invoices, and bitcoin for US sellers outside New York | PayPal wallet, Venmo, PayPal Pay Later, cards, and Pay with Crypto for US merchants (100+ cryptocurrencies through wallets such as Coinbase and MetaMask) |
| Fraud tools | Not priced on the pages we reviewed | Not priced on the fee pages we reviewed; Braintree's Chargeback Protection (from 0.4%) is PayPal's paid add-on for its gateway |
| Point of sale | Free Tap to Pay on iPhone and Android; Square Reader $59; Square Terminal $299 or $27 a month for 12 months | QR code and card payments in person at 2.29% + 9¢; Tap to Pay in the PayPal app with no hardware cost |
| Support | 24/7 priority phone support on Premium | Not published with pricing |
The third option
Where Anytime Capital fits
For a business that invoices clients or sells through links rather than a counter, Anytime Capital Payments is a third option: 2.75% + 30¢ per US card or wallet payment (2.5% + 30¢ for your first 90 days), ACH on invoices and payment links, and no monthly, setup or PCI fees.
In person it needs no terminal: you key in an amount on any phone, tablet or laptop and the customer scans the code and taps to pay on their own phone. Square's hardware and PayPal's in-person rate are better fits for a busy counter. Anytime Capital is a fintech company, not a bank.
Launch offer
Try Anytime Capital Payments: 2.5% + 30¢ for your first 90 days
Then 2.75% + 30¢ per card or wallet payment, with no monthly, setup or PCI fees. Links, invoices and in-person payments from day one, payouts to your bank (instant where eligible), and QuickBooks Online or Xero sync.
- 2.75% + 30¢ online, 2.5% + 30¢ for 90 days
- No monthly, setup or PCI fees
- Payouts to your bank, instant where eligible
- Live US business team
Questions
Square vs PayPal: FAQ
Other head-to-heads
Where to go next
Important Disclosures
- Information about Square and PayPal is drawn from their own published US pricing and pages (squareup.com/us/en/pricing, Square's help center articles on fees, deposit options and payment disputes, squareup.com/us/en/hardware and squareup.com/us/en/payments/instant-transfers; paypal.com/us/business/paypal-business-fees, paypal.com/us/business/fees, PayPal's consumer fee page and user agreement, and PayPal's July 2025 Pay with Crypto announcement) as of October 2026. Prices and features change; where a figure was not published, this page says so rather than giving a number. Check current pricing before you decide.
- Anytime Capital, Square and PayPal are independent companies. This page is not endorsed by, affiliated with or sponsored by Square or PayPal. Third-party names, logos and trademarks belong to their owners and are used only to identify the companies compared.
- This comparison is for information only and is not financial, tax or legal advice.
- Anytime Capital is a fintech company, not a bank. Payment processing, banking and payout services are provided by Anytime Capital's licensed partners. Rates shown are for US card payments; international cards, currency conversion and disputes may carry additional fees shown in your dashboard before you accept a payment.