As a landlord or property manager, it’s crucial to have reliable, efficient, and secure methods for processing payments. Among the most popular options are Stripe and Square, both of which offer robust features for businesses of all types.
What is Stripe?
Stripe is a comprehensive payment processing platform designed predominantly for online transactions. It is renowned for its developer-friendly API which allows for extensive customization and integration with various applications, making it a versatile choice for businesses with specific needs.
Stripe supports a wide range of payment types, including credit and debit card transactions, and is accessible worldwide. It’s particularly favored due to its flexibility and comprehensive online tools. The ability to process payments directly on your website without redirecting customers enhances user experience and can increase conversion rates.
What is Square?
Square, on the other hand, began as a mobile payment processor and has since evolved into a multifaceted financial services company. Its initial fame came from its innovative adapters that plugged into mobile devices, allowing businesses to accept credit card payments on the go.
Square is known for its simple and competitive pricing, charging a flat rate per transaction with no monthly fees. This makes it a popular choice for small businesses and individuals who need a straightforward and affordable payment solution.
While Square has a strong focus on in-person transactions, it also offers online payment solutions, invoicing, appointment management, analytics, and more. Their user-friendly interface and comprehensive suite of tools make it a favorite among brick-and-mortar stores and mobile businesses alike.
Both Stripe and Square have their strengths and are designed to support various aspects of your rental business. The key is to understand your specific needs and choose the payment processor that best aligns with them. In the following sections, we’ll delve deeper into the features of both processors and how they can benefit landlords and property managers.
Square vs Stripe: Comparative Analysis
When maximizing rental income, understanding the differences between Square and Stripe for landlords is essential. These two payment processing services offer diverse features and benefits to cater to different business needs.
Every transaction fee impacts your rental income. Square charges 2.6% plus 10 cents for most in-person transactions and 3.5% plus 15 cents for manually entered card transactions.
On the other hand, Stripe charges a flat rate of 2.9% plus $0.30 per transaction.
Knowing these rates and calculating the costs based on your average transaction volume can help in deciding which platform is more cost-effective for your business.
Both Stripe and Square offer clean, easy-to-use dashboards. However, according to Capterra, Square is rated slightly easier to use. This ease of use extends to both landlords and tenants, simplifying the payment process and the management of transactions.
Stripe allows more customization of the checkout process, which can be tailored to suit your brand and preferences. This flexibility can enhance the tenant’s checkout experience. Square also offers a minimalist checkout experience, though with less customization flexibility.
Square’s heavy focus on in-person businesses makes it a popular choice for landlords who interact face-to-face with their tenants. Square has been widely adopted by mobile and brick-and-mortar businesses alike.
Stripe, predominantly used for online debit and credit card transactions, is better suited for landlords who operate mainly online or have a larger number of tenants. It’s a great option if you have a high volume of online transactions or if you want to offer your tenants a seamless online payment experience.
Customer support can be a crucial factor, especially when dealing with payment-related issues. Square offers live chat support, while Stripe provides 24/7 phone support. Choose the one that aligns with your preferred mode of communication and support needs.
Making the Choice: Square vs Stripe for Your Rental Business
Now that we’ve explored what Stripe and Square offer, the question remains: Which one is the best choice for your rental business?
Factors to Consider When Choosing Between Stripe and Square
Making the right decision between Stripe and Square isn’t as simple as choosing the one with the lowest fees or the most features. Here are some key factors to consider:
- Your tenants’ preferences: Some tenants may prefer the familiarity of PayPal, which is part of the payment options Square offers. If you have a diverse tenant base, offering a well-known payment gateway can be a plus.
- Online vs. in-person transactions: If your rental business includes in-person transactions (such as retail or services), Square’s robust POS system might offer more value. Conversely, if your operations are primarily online, Stripe’s highly customizable online checkout experience could be more beneficial.
- International payments: Stripe’s support for over 135 currencies and transactions in 47 countries makes it a clear winner if you have overseas tenants.
- Ease of integration: Both Stripe and Square can be integrated with various software, but your choice might depend on what other systems you’re using.
- Customer support: Consider the level of customer support you might need. While both Stripe and Square offer extensive support, their availability varies.