Payment Processors
Most businesses agonize over processor selection. The truth: for most SMBs, Stripe or Square works fine. The difference in fees (0.3-0.5%) matters less than picking one and optimizing what you have.
On this page
Quick Decision Tree
At-a-Glance Comparison
| Processor | Best For | Online Rate | CP Rate | Min Volume | Setup |
|---|---|---|---|---|---|
| Stripe | Online, SaaS, developers | 2.9% + $0.30 | 2.7% + $0.05 | None | Days |
| Square | Retail, restaurants, services | 2.9% + $0.30 | 2.6% + $0.10 | None | 15 min |
| Shopify Payments | Shopify stores only | 2.9% + $0.30* | 2.7% + $0* | None | 5 min |
| Helcim | Cost transparency, growing volume | IC+ 0.50% + $0.25 | IC+ 0.40% + $0.08 | None | Days |
| Braintree | Cards + PayPal + Venmo | 2.59% + $0.49 | 2.4% + $0.10 | None | Days |
| PayPal | Brand trust, secondary option | 3.49% + $0.49 | 2.7% + $0 | None | Hours |
| Adyen | Enterprise, global | 1.2-2.2% + IC+ | Negotiated | $10M/yr | Months |
*Shopify Payments rates vary by Shopify plan (Basic shown)
When to Use Each Processor
Stripe: Developer-Led, Online-First
Choose Stripe if:
- You have developers on your team
- You're building online/mobile checkout
- You need subscription billing
- You want to scale globally
- You value API quality over ease-of-setup
Pricing: 2.9% + $0.30 (online), 2.7% + $0.05 (card-present)
Setup time: 1-7 days (requires integration)
Square: Card-Present, Non-Technical
Choose Square if:
- You're primarily brick-and-mortar retail
- You need to start accepting payments today
- You don't have a technical team
- You want all-in-one POS (inventory, employees, reporting)
- You're doing under $500K/month
Pricing: 2.6% + $0.10 (card-present), 2.9% + $0.30 (online)
Setup time: 15 minutes (plug and play)
PayPal: Brand Recognition, Trust
Choose PayPal if:
- Your customers ask for it specifically
- You're selling to older demographics (50+)
- You need instant credibility for new brand
- You want to add it as secondary checkout option
- Conversion lift justifies 20-40% higher fees
Pricing: 3.49% + $0.49 (online), 2.7% + $0 (card-present)
Setup time: 1-3 hours (simple integration)
Adyen: Enterprise, Global
Choose Adyen if:
- You're processing over $10M/year minimum
- You're selling in 10+ countries
- You need unified global platform
- You have technical team for integration
- You want to negotiate sub-2% rates
Pricing: 1.2-2.2% + IC+ (100% negotiated)
Setup time: 6-9 months (complex integration)
Shopify Payments: For Shopify Stores
Choose Shopify Payments if:
- You're on Shopify (default choice)
- You want to avoid 0.5-2% third-party transaction fees
- You need unified reporting (sales + payments)
- You're selling in multiple countries
Pricing: 2.9% + $0.30 (Basic plan), scales down with higher tiers
Setup time: 5 minutes (built into Shopify)
Read full Shopify Payments profile →
Helcim: Interchange-Plus Transparency
Choose Helcim if:
- You're doing over $100K/month
- You want to see actual costs (interchange + markup)
- You want automatic volume discounts
- You care about long-term cost optimization
Pricing: IC+ 0.40-0.50% + $0.08-$0.25 (volume-based tiers)
Setup time: 1-3 days (requires integration)
Braintree: Cards + PayPal + Venmo
Choose Braintree if:
- You want cards, PayPal, and Venmo in one integration
- You're targeting millennials/Gen Z (Venmo is popular)
- You have developers on your team
- You want PayPal checkout without PayPal's API pain
Pricing: 2.59% + $0.49 (cards), 3.49% + $0.49 (PayPal/Venmo)
Setup time: 1-5 days (requires integration)
Pricing Comparison by Scenario
$100 Transaction
| Processor | Online Fee | Card-Present Fee |
|---|---|---|
| Stripe | $3.20 | $2.75 |
| Square | $3.20 | $2.70 |
| Shopify Payments | $3.20 (Basic plan) | $2.70 |
| Helcim | $2.40-$2.70 (depends on card type) | $2.20-$2.50 |
| Braintree | $3.08 | $2.50 |
| PayPal | $3.98 | $2.38 |
| Adyen | $2.50-$3.00 | $2.20-$2.80 |
$100K/Month Volume
| Processor | Estimated Monthly Fees | Effective Rate |
|---|---|---|
| Stripe | $3,200 | 3.2% |
| Square | $3,200 (online) $2,700 (CP) | 3.2% / 2.7% |
| Shopify Payments | $3,200 (Basic plan) | 3.2% |
| Helcim | $2,400 | 2.4% (IC+ model) |
| Braintree | $3,080 (cards only) | 3.1% |
| PayPal | $3,980 | 4.0% |
| Adyen | $2,500-$3,000 | 2.5-3.0% |
$1M/Month Volume
| Processor | Estimated Monthly Fees | Notes |
|---|---|---|
| Stripe | $32,000 | Negotiate for 0.1-0.3% discount |
| Square | $32,000 | No negotiation available |
| PayPal | $39,800 | No negotiation available |
| Adyen | $18,000-$25,000 | Significant negotiation possible |
Adyen's advantage grows with volume.
Common Processor Combinations
1. Stripe + PayPal Button
Best for: Online businesses under $1M/month
How it works:
- Stripe handles all card payments (2.9% + $0.30)
- PayPal button for customers who prefer PayPal
- 10-20% of customers choose PayPal
Cost:
- 80% of transactions at Stripe rates: ~3.2% effective
- 20% of transactions at PayPal rates: ~4.0% effective
- Blended: ~3.4% effective
Benefit: Conversion lift from PayPal often exceeds extra cost.
2. Square POS + Stripe Online
Best for: Omnichannel (retail + e-commerce)
How it works:
- Square for in-store (2.6% + $0.10)
- Stripe for website (2.9% + $0.30)
- Separate systems but manageable
Cost:
- In-store: 2.7% effective
- Online: 3.2% effective
Benefit: Best tool for each channel.
Drawback: Reconciliation across two systems.
3. Adyen for Everything
Best for: Enterprise over $50M/year, global
How it works:
- Single platform for online, in-store, mobile
- Unified reporting and reconciliation
- Global reach
Cost:
- Negotiated: 1.5-2.5% all-in
Benefit: Simplicity at scale, lowest rates.
Drawback: High setup costs, long implementation.
Switching Costs Reality Check
Don't switch processors for 0.3% savings unless you have high volume. Switching costs include:
| Cost | Estimate |
|---|---|
| Development time | 40-200 hours |
| Testing | 20-40 hours |
| Downtime risk | Potential lost sales |
| Learning curve | Team training |
| Data migration | Customer card migration |
Break-even analysis:
- $100K/month, 0.3% savings = $300/month
- Integration cost: $10,000-$30,000
- Payback: 33-100 months (3-8 years)
Not worth it unless switching for other reasons (features, support, reliability).
Worth it at:
- $500K/month, 0.5% savings = $2,500/month (payback: 4-12 months)
- $1M/month, 1.0% savings = $10,000/month (payback: 1-3 months)
Test to Run
Processor decision audit (choosing or reconsidering):
Week 1: Usage Analysis
- Calculate your transaction mix:
- Card-present: ____%
- Online: ____%
- Keyed-in: ____%
- Calculate current or expected monthly volume: $_____
Week 2: Cost Modeling 3. Calculate effective rates for each processor based on your mix 4. Use pricing from individual processor pages 5. Include setup and switching costs
Week 3: Feature Comparison 6. List must-have features:
- Subscription billing?
- Multi-currency?
- API customization?
- POS features?
- Check which processors have these
Decision Matrix:
| Factor | Stripe | Square | PayPal | Adyen |
|---|---|---|---|---|
| Effective rate | __% | __% | __% | __% |
| Setup cost | $ | $ | $ | $ |
| Has must-have features? | Y/N | Y/N | Y/N | Y/N |
| Total score | __ | __ | __ | __ |
Success criteria: Pick the processor with best total score. Don't overthink it.
Scale-Based Recommendations
Under $100K/Month
Recommended: Stripe or Square
Why:
- Fees are similar across processors
- Ease of setup matters more than 0.3% rate difference
- Both have good fraud tools
- Both scale to $1M+ easily
Choose Stripe if: Online-first, have developers Choose Square if: Card-present-first, non-technical
$100K-$1M/Month
Recommended: Stripe or Square (or both)
Why:
- Still under Adyen's minimum
- PayPal is too expensive as primary processor
- Stripe/Square pricing is competitive
Optimization:
- Ask Stripe for volume pricing (small discounts possible)
- Consider Stripe + PayPal button for conversion lift
- Monitor effective rate monthly
$1M-$10M/Month
Recommended: Stripe with negotiation, or start Adyen evaluation
Why:
- Negotiate with Stripe for 0.1-0.3% discount
- Adyen will talk to you but rates won't be great yet
- Savings start to justify switching costs
Decision point:
- Stay Stripe if US/EU-focused
- Evaluate Adyen if expanding globally
Over $10M/Month
Recommended: Adyen or negotiated Stripe
Why:
- Adyen rates (1.2-1.8%) beat Stripe (2.6-2.8%)
- Savings: 0.8-1.5% = $96K-$180K/year on $10M volume
- Worth the integration effort
Consider:
- Multi-processor strategy for leverage
- Direct acquirer relationships
- Payment orchestration platforms
Next Steps
Choosing your first processor?
- Use the decision tree above
- Read the full profile for your top choice
- Start integration (or plug in reader)
Reconsidering your current processor?
- Run the processor decision audit
- Calculate switching costs vs savings
- Read Processor Switch Checklist if switching
Want to optimize your current setup?
- Auth Optimization - Improve approval rates
- Chargeback Prevention - Reduce disputes
- Fraud Detection - Better fraud screening
See Also
- Buying Payments - Full processor selection framework
- Processor Comparison - Detailed comparison table
- Processor Switch Checklist - How to switch
- Payment Ecosystem - Understanding processors vs acquirers
- Provider Types - PayFac vs ISO vs acquirer
- Gateway Basics - Gateway vs processor