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Square vs. PayPal Here
Compare tools and pricing for two big names in on-the-go payment processing popular with small businesses.
While Square may have pioneered point-of-sale (POS) payment processing in 2009, it’s not the only fish in the pond. PayPal Here launched in 2012, equipped with its own card reader and app to accept mobile payments. Both payment services have similar price points per transaction, but the extra features set them apart.
How do Square and PayPal Here compare?
Which should I choose?
Choose Square if you’re a small business processing less than $250,000 annually
Choose PayPal Here if you’re a small business that needs a mobile POS.
A good option for merchants that need a full hardware lineup.
A good option for venders that want a straightforward, standard POS system.
Processing fees start at
2.6% + 10¢ for payment processing, POS software included
2.7% per transaction
Same day with a linked PayPal Business Debit Mastercard
High-risk merchants accepted?
BBB letter rating
Based on 3,129 reviews
PayPal Here does not have a Trustpilot page
Reputation and customer reviews
Reviews are mixed while some customers praise a smooth onboarding process, others complain about difficulty getting in touch with its support team.
Reviews from Google Play and the App store are mostly positive. Customers praise quick transaction processing, while others complain about software login errors.
Square vs. Paypal Here hardware
When comparing these providers, you’ll want to take a careful look at the hardware they offer. Square — famous for its signature white card reader — has a solid lineup of proprietary hardware, while PayPal integrates with a wider sweep of third-party hardware providers.
Square Reader for contactless and chip
Chip and Swipe
Card reader with screen
Chip and Tap
Small countertop POS
Magstripe-only card reader
Square Reader For magstripe
Square can help you manage your small business if you need a variety of payment-processing platforms on an integrated POS system. But if you’re only looking for a streamlined on-the-go POS system, PayPal Here may be a better option.
Frequently asked questions
What’s the difference between Square and Squarespace?
Square is a payment processing service, while Squarespace is a website building tool.
What does Square report to the IRS?
It depends. Square issues a 1099-K to the IRS when you have at least $20,000 in gross sales and process over 200 transactions in a calendar year.
What role does my tax ID number play to use PayPal Here?
A tax identification number is not required to activate a PayPal account. But PayPal may ask you for your tax ID number when you come close to 200 transactions so that it can report your earnings to the IRS
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