When deciding on your chosen payment gateway - Stripe or Square - its useful to understand what the costs and other benefits to consider might be.

Regardless of which one you choose, card payments are convenient, easy to track, quick and popular with clients.

Pocket PA automatically adds all transaction fees directly to the business expenses area as they are a tax deductible cost

Things to consider:

  • Upfront cost to use a Card reader (Square - from £19) or not needed (Stripe)

  • Whether you plan to take more payments using Online bookings, Auto invoicing or Face to face payments

  • Convenience factor of cashless payments - no wasted time at the bank when you could be earning more money seeing clients

When choosing the right option for your business, think about if you will be taking more money via

  1. ONLINE BOOKING /AUTO INVOICING - hands off collection of monies

  2. DIRECT CARD PAYMENTS where the client is present - as each have different transaction fee rates

A very rough guide is that

  • Stripe is cheaper overall for ONLINE BOOKING/ AUTO INVOICING payments if you do more of these transactions

  • Square is generally cheaper if you take more face to face card payments

STRIPE & SQUARE FEES - EXAMPLES

EXAMPLE 1

Online Booking or Auto Invoicing Example of transaction fees:

  • Stripe charge 1.6% + 23p per transaction

  • Square charge 2.5% per transaction

On a £45 (example also given for £30 deposit) online booking / auto invoicing where a deposit or payment is taken remotely, this works out to be

  • Stripe cost £0.95 for £45 deposit (£0.71 for £30 deposit) taken

  • Square cost is £1.13 for £45 deposit (£0.75 for £30 deposit) taken

EXAMPLE 2

Card Payment Example when a client attends an appointment and is present

  • Stripe charge 1.6% + 23p per transaction

  • Square charge 1.75% per transaction via the CHIP & PIN or contactless card reader. (YOU MUST BUY A CARD READER FIRST FOR THIS OPTION - these cost from £19)

On a £45 (example also given for £30 payment) when a client attends an appointment and wants to pay you by card, this works out to be

  • Stripe cost £0.95 for £45 payment (£0.71 for £30 payment) taken

  • Square cost is £0.79 for £45 payment (£0.53 for £30 payment taken

Did this answer your question?