Mobile Credit Card Processing Square up vs PayPal


With the advancement in technology, everything has gone mobile. It is very convenient and efficient to use mobile credit card processing services. You have the ability to process credit card payments without being in your office. This concept has been readily accepted by many individuals and businesses as a more efficient way of making and receiving payment. Amongst the service providers in the market are PayPal and Square. These two are competing head to head to serve a similar target market. What are its features that make it outstanding?

© Oleksiy Mark -
© Oleksiy Mark –
Ease of use, Monthly fee and Swipe rates

Both parties have a very easy service for use. While PayPal does not have a monthly fee for use, Square offers a $275 flat rate monthly rate. Similarly, they do not have a starting fee before registering to use their services. Their swipe rates are almost similar with PayPal providing a 2.7% rate for US cards which beats that of Square that provides a 2.75% rate for all cards. The keyed rate provided for both service providers is similar at 3.5% + $0.15. For non-US cards, PayPal changes the swipe rate to 3.7%.


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Free App and card reader

In reference to their services, both parties provide for a free App and card reader. The card reader from PayPal will take about 5 – 7 working days to reach the end user. Square’s card reader will take between 5 – 10 working days to reach the end user.

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Phone and device compatibility

PayPal supports a couple of devices. If you own any Apple device running on iOS 3GS, iPads with iOS 5 or an Android smartphone, then you are free to use PayPal. Square beats this number by being compatible with more devices. These include: Apple iOS, Android devices 2.3 and above, specified printers as well as cash registers as well as some bar-code scanners.


Square took on the top position in the market for a number of reasons. First, they offer the flat processing rate while at the same time not pricing credit card transactions. PayPal on the other hand relies on merchants accounts. This requires the involvement of a third party to complete transactions. As a result, individuals will be charged according to the third party’s rates which are normally $0.25 and above. If not for PayPal’s market recognition, Square would have given them a run for their money.


In reference to pricing, these two service providers have taken different routes but are head to head. With PayPal having a lower 2.7% swipe rate, Square offers a flat rate of $275 per month no matter how many transactions you process. Depending on what you do, picking the right service is a rather easy task.


Check processing fee

The use of checks is becoming rare by the day. However, since PayPal has been in the market for quite some time, it had established a system to settle check transactions. This is a feature key to PayPal and acts as an added advantage. There are no costs attached to it.


Customer service

Square comes with an online help desk which can be hard to gain access to at times. On the other hand, PayPal offers a phone number for calls, an email support center, an online help center as well as a community support system. For a company that is offering services on credit card processing, PayPal has better customer service. Matters concerning money require urgent attention and feedback providing PayPal with another added advantage in the field.


Payment Options

Both parties offer credit and signature debit payment options. In addition to this, PayPal accepts checks for processing as well as allows for electronic invoices. The credit and signature cards include Visa, MasterCard, American Express and Discover. These are applicable to both parties. PayPal takes a lead in the market with the addition of check processing and electronic email invoicing.

Square allows for recording of gift certificates. Both parties also allow for recording of cash transactions.


Speed of setup and Processing

While it may be easy to work with both parties, PayPal will offer funds immediately to your PayPal account. On the other hand, Square will deposit funds a day later. Looking at this, PayPal seems to carry home the cup. This is true only if you want the money in your PayPal account immediately. If you need the money in your personal account, then Square takes home the cup. The transfer duration of moving money from your PayPal account to your personal account will take up to three days. As opposed to the one day allowance with Square, PayPal will take a longer time.


International services

Square is limited to serving the United States and Canada only. They have not expounded on their international market coverage. On the other hand, PayPal has a wider international market with the coverage of United States, Hong Kong, Canada and Australia.


Users per account

The number of users for each account as a PayPal user is limited to one thousand users. Square beats this offer by offering an unlimited number to every account.



Both companies offer encrypted card readers, and offer protection from fraud. In addition, they monitor all transactions in an attempt to ensure that they are all safe. PayPal offers PINS to help with privacy aspects in addition to the above.


PayPal’s special features are quite a number. They offer discounts at certain times of the year and they will appreciate their clientele base by sending thank you notes to each individual. Square on the other hand has a customer loyalty program which seeks to reward their clientele base.


PayPal and Square seek to meet your mobile credit card processing services to meet your every objective. While they are both easy to work with and need no financing to register with them, they also come with unique features to remain competitive in the field. Depending on the set goals and objectives, you will definitely meet them by using one of these service providers. They will service both individuals and businesses just fine. With the advancement in technology, this is definitely an option to consider.


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