Square vs Paddle — which takes less?
| Square | Paddle | |
|---|---|---|
| Headline rate | 2.9% + $0.30 online / 2.6% + $0.15 in person | 5% + $0.50 per transaction, all-inclusive MoR |
| $100 → fees | $3.20 | $5.50 |
| $100 → net | $96.80 | $94.50 |
Side-by-side quick reference
| Amount | Square fees | Square net | Paddle fees | Paddle net | Difference | Square charge→net | Paddle charge→net |
|---|---|---|---|---|---|---|---|
| $10.00 | $0.59 | $9.41 | $1.00 | $9.00 | square +$0.41 | $10.61 | $11.06 |
| $25.00 | $1.03 | $23.97 | $1.75 | $23.25 | square +$0.72 | $26.06 | $26.85 |
| $50.00 | $1.75 | $48.25 | $3.00 | $47.00 | square +$1.25 | $51.81 | $53.16 |
| $100.00 | $3.20 | $96.80 | $5.50 | $94.50 | square +$2.30 | $103.30 | $105.79 |
| $250.00 | $7.55 | $242.45 | $13.00 | $237.00 | square +$5.45 | $257.78 | $263.69 |
| $500.00 | $14.80 | $485.20 | $25.50 | $474.50 | square +$10.70 | $515.25 | $526.85 |
| $1,000.00 | $29.30 | $970.70 | $50.50 | $949.50 | square +$21.20 | $1,030.18 | $1,053.16 |
Square formula
payment processing 2.90% + $0.30
2.9% + $0.30 online / 2.6% + $0.15 in person — verified 2026-11-10
Paddle formula
payment processing 5.00% + $0.50
5% + $0.50 per transaction, all-inclusive MoR — verified 2026-11-10
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.
Paddle fee formula & hidden costs
payment processing 5.00% + $0.50
Worked example: $100.00 gross → $5.50 fees → $94.50 net. Reverse gross-up: charge = (target + fixed) / (1 − rate) → to net $100.00 charge $105.79.
Hidden fees to watch
- The 5% is all-inclusive — no intl, PayPal or subscription surcharges — but volume discounts require negotiating.
- Chargebacks and refunds still cost you the lost revenue.
- Payout schedules and holding periods can pinch cash flow early on.
Frequently asked questions
Which takes less on a $100 sale: Square or Paddle?
Square takes $3.20 (net $96.80); Paddle takes $5.50 (net $94.50). Square wins by $2.30 at $100.
Which is better for international sellers, Square or Paddle?
Square: 2.9% + $0.30 online / 2.6% + $0.15 in person. Paddle: 5% + $0.50 per transaction, all-inclusive MoR. Check the regional variants above — rates change materially by country.
What is the effective take rate difference between Square and Paddle?
At $100, Square takes 3.2% vs Paddle at 5.5% — a 2.3 point gap before modifiers.