Best Point-of-Sale System: Stripe, Square, Paypal, or Merchant Accounts?


In early September, Amazon announced its intention to launch its own point-of-sale (POS) system that can be used by third-party sellers. The goal is to attract small businesses looking to handle both online and offline transactions while linking to various other Amazon services. Point-of-sale systems are an important part of the transaction experience and with so many different types out there, it can be hard to tell which one is best suited for your business.

First Direct Financial is a leading merchant services provider in the United States. We strive to provide excellence in everything we do, from security and credit card processing to POS systems and customer service. The possibilities are endless when you partner with us. Read our article below and learn about the differences between Stripe, Square, Paypal, and traditional merchant account services. 

What is Stripe?

Stripe is an online payment API for businesses’ websites and apps. It’s very developer-focused and offers customized payment styles and platform payments that suit your business needs. This type of point-of-sale system does not charge monthly fees or setup fees. Instead, you would simply pay 2.9% of the transaction value, plus $.30 for every transaction

Is PayPal the Point-of-Sale System for You?

PayPal has been a very popular business and peer-to-peer payment solution for a very long time. It’s a versatile POS that can be added to your online store, website, invoice, or donation collection; letting customers complete their transactions with their PayPal accounts. This point-of-sale system is popular with consumers because of its purchase protection and safety features. 

Can Square Meet Your Business Needs?

Another point-of-sale system that’s become popular is Square. They offer a wide variety of payment solutions with the business owner’s needs in mind. They offer a wide range of payment solutions, which while great on paper, can be very confusing to understand what your business may actually need. Much like Stripe, Square offers businesses assistance in setting up online shopping for their customers. However, their services come at a premium. Depending on what point-of-sale system you go with, the hardware cost can range anywhere from $0 to $799. Also, they have several transaction fees you must be aware of:

  • In-person transactions: 2.6% + $0.10
  • In-app transactions: 2.9% + $0.30
  • Online transactions: 2.9% + $0.30


Extensive Point-of-Sale Systems with Traditional Merchant Account Services

Another payment solution that is important for businesses to consider are traditional merchant account services. Providers, like First Direct Financial, work closely with businesses big and small on their transaction capabilities to influence increased sales. This is achieved in a number of ways, like:

  • Installing state-of-the-art technology to accept payments in-person and online.
  • Provide effective security to ensure you and your customers’ sensitive financial data is protected from malicious activity.
  • Traditional merchant account service providers typically put a high value on customer satisfaction. First Direct Financial offers personal representatives that work for you to ensure your needs are being met.
  • We negotiate the best credit card processing fees to ensure you generate more revenue from transactions.


So, What’s the Best Point-of-Sale Solution for You?

While each system offers excellent services, we strongly recommend going with a traditional merchant account services provider. They’ll be more in-tune with your business and provide more personalized solutions to your business needs. Additionally, their transaction fees are highly competitive and can achieve much more than what Stripe, Square, and PayPal provide.

Partner with First Direct Financial to Receive Incredible Merchant Account Services

When you partner with First Direct Financial, you’re not just getting state-of-the-art merchant services, you’re getting a partner. Your complete satisfaction is our primary goal and we assure you we can get you the lowest possible rate with the best quality of service. Contact us today and learn how First Direct Financial can help you with your mobile payment processing needs.