PayPal vs Square — which takes less?
| PayPal | Square | |
|---|---|---|
| Headline rate | 3.49% + $0.49 per Goods & Services transaction | 2.9% + $0.30 online / 2.6% + $0.15 in person |
| $100 → fees | $3.98 | $3.20 |
| $100 → net | $96.02 | $96.80 |
Side-by-side quick reference
| Amount | PayPal fees | PayPal net | Square fees | Square net | Difference | PayPal charge→net | Square charge→net |
|---|---|---|---|---|---|---|---|
| $10.00 | $0.84 | $9.16 | $0.59 | $9.41 | square +$0.25 | $10.87 | $10.61 |
| $25.00 | $1.36 | $23.64 | $1.03 | $23.97 | square +$0.33 | $26.42 | $26.06 |
| $50.00 | $2.24 | $47.76 | $1.75 | $48.25 | square +$0.49 | $52.32 | $51.81 |
| $100.00 | $3.98 | $96.02 | $3.20 | $96.80 | square +$0.78 | $104.13 | $103.30 |
| $250.00 | $9.22 | $240.78 | $7.55 | $242.45 | square +$1.67 | $259.55 | $257.78 |
| $500.00 | $17.94 | $482.06 | $14.80 | $485.20 | square +$3.14 | $518.59 | $515.25 |
| $1,000.00 | $35.39 | $964.61 | $29.30 | $970.70 | square +$6.09 | $1,036.67 | $1,030.18 |
PayPal formula
payment processing 3.49% + $0.49
3.49% + $0.49 per Goods & Services transaction — verified 2026-11-10
Square formula
payment processing 2.90% + $0.30
2.9% + $0.30 online / 2.6% + $0.15 in person — verified 2026-11-10
PayPal fee formula & hidden costs
payment processing 3.49% + $0.49
Worked example: $100.00 gross → $3.98 fees → $96.02 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $104.13.
Hidden fees to watch
- Cross-border commercial payments add +1.5% on top of the domestic rate.
- PayPal currency conversion applies a 3-4% markup over the wholesale exchange rate.
- On refunds PayPal returns the percentage portion but keeps the $0.49 fixed fee.
- Chargeback fees run $8-$20 per dispute on top of losing the sale.
- Instant transfers to a bank or card cost 1.75% (min $0.25, max $25).
Square fee formula & hidden costs
payment processing 2.90% + $0.30
Worked example: $100.00 gross → $3.20 fees → $96.80 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $103.30.
Hidden fees to watch
- Keyed-in and card-on-file payments cost 3.5% + $0.15 — the most expensive Square channel.
- Afterpay/BNPL orders cost 6% + $0.30, more than double the online card rate.
- Square keeps the processing fee when you refund a customer.
- Instant transfers cost 1.75% of the transfer amount (standard next-day deposits are free).
- Square Payroll, Loyalty and advanced POS tiers bill separately from processing.
Frequently asked questions
Which takes less on a $100 sale: PayPal or Square?
PayPal takes $3.98 (net $96.02); Square takes $3.20 (net $96.80). Square wins by $0.78 at $100.
Which is better for international sellers, PayPal or Square?
PayPal: 3.49% + $0.49 per Goods & Services transaction. Square: 2.9% + $0.30 online / 2.6% + $0.15 in person. Check the regional variants above — rates change materially by country.
What is the effective take rate difference between PayPal and Square?
At $100, PayPal takes 4.0% vs Square at 3.2% — a 0.8 point gap before modifiers.