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
ONLINE BOOKING /AUTO INVOICING - hands off collection of monies
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