Running a small business comes with many challenges, especially regarding finances. Making in-person payments is crucial to keeping your doors open, but managing this task efficiently can be a real headache. Between long transaction times, clunky hardware, and complicated software systems, many merchants struggle to find a reliable solution that works for their unique operations. How to choose a point of sale system? It's an important decision that can directly impact your business's efficiency and customer experience. The good news is you don’t have to navigate these complexities alone. This article will unpack Stripe POS, a top-rated point-of-sale system for small businesses that can help you seamlessly manage in-person payments and operations.

With its intuitive interface, robust features, and reliable hardware, the Stripe POS system can help you create an efficient customer checkout process. This article will teach you about Stripe POS and how this solution can help you tackle your payment processing challenges. 

What is the Stripe POS and Why It Stands Out

Stripe POS is an intuitive point-of-sale system for small businesses, particularly e-commerce merchants looking to process in-person payments. As a part of Stripe's broader payment ecosystem, Stripe POS offers seamless integration with the company's online payment processing platform. 

This feature is handy for businesses that already utilize Stripe for online transactions and want to extend its capabilities to in-person sales. Stripe POS stands out for its customization options and transparent pricing. Its reliance on developer resources and lack of intuitive features for users unfamiliar with Stripe can make it a less-than-ideal choice for some businesses.

How Does Stripe POS Work?

As noted, Stripe POS is not a traditional POS system. Instead, it’s a method for using Stripe’s powerful payment processing tools to manage in-person transactions. With Stripe POS, you can integrate Stripe payments into your existing in-person checkout flow or build in-person payments into your existing mobile or web-based application. The software works both ways, but it’s best used by e-commerce merchants looking to add in-person payments. 

The company provides detailed instructions for integrating Stripe Terminal with an existing Stripe Connect platform and your point-of-sale application. To be clear, Stripe Terminal is not a point-of-sale (POS) system but a way to capitalize on Stripe’s top-notch payment processing for in-person transactions.

Who is Stripe POS Best For?

If you’re already a Stripe user or are comfortable with advanced developer tools, it’s a worthy extension. If you have developer experience, you can integrate your payment processing with one of several hardware options through its software development kit or use one of Stripe’s no-code POS partners. 

Several of these integrated partners are free to use. But if you do most of your business in person, want a more user-friendly payment processing option, or are looking for an out-of-the-box POS solution, it’s best to go with a more straightforward POS system like Square or Shopify.

Where Stripe POS Excels?

Highly customizable If you (or someone on your team) have developer experience, you can take full advantage of Stripe’s customizable checkout flow. You can use its API to create a payment processing setup that works for your business and integrates into mobile and desktop applications. For a more user-friendly option, Stripe also partners with platforms that provide no-code POS solutions and companies that hire experts to customize for you. 

Stripe’s pricing is fully transparent, and its payment processing fees are comparable to those of competitors like Square and PayPal. Unlike with many POS systems and payment processors, there’s no monthly subscription fee to use the software, so your only costs will be an initial hardware purchase and per-transaction payment processing fees. Integrations Stripe Terminal works with:

• Stripe Payments
• Connect
• Billing

So you can manage online and in-person sales in one place. Stripe also integrates with outside applications, including:

• Digital wallets
• Xero
• HubSpot
• Mailchimp, and more

It can also be incorporated into your business’s mobile app. Flexible API With Stripe Terminal, you can create customized email receipts and reader splash screens and integrate them into JavaScript-, iOS- and Android-based point-of-sale applications for more customization.

Where Stripe POS Falls Short

Online-first Stripe is geared primarily toward online businesses. Its in-person transaction capabilities are a reasonably new extension and aren’t intuitive for users without a developer background. If your business already uses Stripe and you want to add in-person transactions, the company’s 24/7 support and no-code POS integrations can help you get through the integration process. 

Still, it’s not the best option for new or brick-and-mortar-only businesses. Requires developer experience. Even if you only use Stripe’s online payment processing system, many advanced features and customization tools require some coding. To use Stripe with your POS system and process in-person payments, you must set up a Stripe Terminal SDK before connecting to a card reader. 

Easy Setup with No-Code Software Options

There are several ways to do this, and Stripe provides clear step-by-step instructions on its support website. Still, without developer experience, this process can be complicated and may take some time to learn before you can start taking payments. Stripe integrates with over a dozen no-code POS software options, so if you’re willing to add an extension, you can bypass the SDK process.

Related Reading

• POS System Features
• Compare POS Systems for Retail
• Portable POS System
• What Is the Best POS System for Small Business?
• Things to Consider Before You Buy a POS System

Square Vs. Stripe POS Comparison Guide

Choosing a payment processor is a critical part of running your business. When comparing different options, it’s helpful to examine their similarities and differences to determine which is best for your company. Square and Stripe are two of the most popular and well-known payment platforms. Both of these companies give small business owners an easy way to process payments and the ability to accept credit card payments without a minimum monthly revenue or an application process. 

Both enable merchants to charge customers’ credit cards even when they’re just starting a business—whether it’s bringing in $3,000 or $30,000 in revenue per month. The main difference between Square and Stripe is that Square is best suited for in-person transactions, while Stripe is a developer-friendly platform for:

• E-commerce
• Subscriptions
• Other online payments

Transaction Fees: What's the Difference?

Square:

• Swipe/Chip Transaction Fees: 2.6% plus 10 cents per transaction.
• Keyed Transactions: 3.5% plus 15 cents per transaction.
• Customer Payment Options: Merchants can accept all major credit cards, Cash App, and prepayment options for appointments.
• Chargeback Fees: No fee.
• Refund Fees: No fee. When a refund is issued, the customer receives their full payment, and the merchant gets the transaction fee back.
• Software Integration: Compatible with Acuity Scheduling, GoDaddy Websites and Marketing, Wix, WooCommerce, JotForm, and more.
• International Fees: No additional fees for international credit cards.
• Invoicing: Yes.

Stripe:

• Swipe/Chip Transaction Fees: 2.9% plus 30 cents per successful card charge. An additional 1% fee applies for international cards, plus another 1% if currency conversion is required.
• Keyed Transactions: 2.9% plus 30 cents per successful card charge. Same additional fees for international cards and currency conversion as above.
• Customer Payment Options: Merchants can accept all major credit cards, buy now pay later options, international cards, and payments in over 135 different currencies.
• Chargeback Fees: 0.40%.
• Refund Fees: Original transaction fees are not returned when a refund is issued.
• Software Integration: Compatible with Drupal, PrestaShop, Magento, Shopware, WooCommerce, WordPress, and more.
• International Fees: 1% for international cards and an additional 1% for currency conversion.
• Invoicing: Yes.

Square and Stripe fees for swipe/chip transactions are about the same—2.6% plus 10 cents per transaction for Square and 2.9% plus 30 cents for Stripe—but Stripe’s fee is significantly lower for keyed transactions—3.5% plus 15 cents for Square and no change in fee for Stripe. 

The transaction fees for both Stripe and Square vary significantly according to several factors, including the:

• Amount of each transaction
• How much money you process per month
• The payment method

Square is best suited for smaller businesses making less than $5,000 per month. You can look at their fee calculator to get a more accurate quote of the fees you’ll be paying for Square.

Additional Hidden Transaction Fees

Apart from these differences in transaction fees, there are other variations in fees to be aware of. Stripe charges merchants a fee of 0.40% for chargebacks, while Square does not have chargeback fees. Additionally, Stripe charges an extra 1% for international transactions, while Square does not. 

Finally, Stripe does not refund merchants the transaction fee when a customer issues a return, while Square does return the transaction fee to the merchant. You’ll want to factor in these additional charges if you frequently issue returns.

Payment Processing Features: What Can You Do?

Both options ranked well in our comparison of the top 10 credit card processors. Stripe is a leading payment processing platform for e-commerce and online stores. The payment processing platform is specifically suited for developers and comes with extensive customization tools for the checkout process in an online store. 

Stripe also focuses on subscription payments for software-as-a-service (SaaS) businesses. Square, on the other hand, offers more hardware options and is best suited for in-person transactions.

Square and Stripe are built for different business needs and purposes. Square is better suited for in-person transactions and offers business integration tools for in-store and online payments, including a feature to schedule appointments within the app so that you can integrate your calendar with your payment platform. There’s a feature for customers to book online, and you can send them reminders through the app. Square also lets you keep client credit cards on file and schedule prepayments before visits. 

In general, Square’s interface is easier to manage and navigate, although there will be less flexibility and ability to customize. Stripe provides greater flexibility for the customer checkout experience and accepts a broader range of payment options, including:

• More than 135 currencies
• Popular international payments

It is better suited for e-commerce, tech-based companies, and recurring billing for SaaS services.

Related Reading

• Cost of POS System for Bar
• POS Restaurant Management System
• Restaurant POS Comparison
• Best POS System for Takeaway
• Chinese Restaurant POS System

Book a Free Demo With POS Exchange to Learn About Our Customized POS System Solutions Today!

The POS Exchange brings over 20 years of restaurant expertise, serving 200,000+ merchants and processing billions annually. Our tailored POS system solutions help businesses speed up checkouts by 30%, implement dynamic pricing, and manage customer reviews while reducing overhead. Perfect for:

• Full-service restaurants
• Pizza shops
• Coffee houses
• Multi-location enterprises

We offer end-to-end service, from brilliant consultation and interactive demos to local installation and 24/7 support. Our mobile iPad POS systems streamline operations with features like:

• Order management
• Bill splitting
• Inventory control

With integrations for business management tools and advanced security measures, we ensure your POS system grows with your business. Trust our expertise to help you avoid the common pitfall that affects 38% of new business owners who choose the wrong POS system. 

Whether you're managing:

• A busy restaurant
• A local café
• Operating a multi-location business

The POS Exchange delivers customized POS system solutions that tell your unique business story. Book a free demo with POS exchange to learn about our customized POS system solutions today.

Related Reading

• POS Cash Register
• Top POS Systems
• Squarespace POS
  
• POS Terminal
• Tablet POS

‍