Why Stripe is better than Squarespace Payments
Squarespace will understandably recommend Squarespace Payments over Stripe. They promise a simpler way to accept payments, with everything managed directly through your Squarespace website. But simpler doesn't mean cheaper.
As a UK-based Squarespace business, I compared the transaction fees charged by Squarespace Payments with those charged by Stripe, and the results are really interesting - particularly because Squarespace promotes lower payment processing fees as one of the benefits of upgrading to its more expensive website plans. Spoiler: Squarespace isnβt cheaper than Stripe - even on the most expensive website plan!!
How much does Stripe charge in the UK?
Stripe has a relatively straightforward pricing structure for UK businesses accepting online card payments:
| Card type | Stripe processing fee |
|---|---|
| Standard UK cards | 1.5% + 20p |
| Premium UK cards | 2.8% + 20p |
| EEA cards | 2.5% + 20p |
| Other international cards | 3.15% + 20p |
For UK businesses selling internationally, the distinction between EEA and other international cards matters. Customers in countries such as Ireland, France and Germany attract a lower processing rate than customers using cards issued in the United States, Canada or Australia.
These are Stripe's standard published rates, without any negotiated discounts.
How does Squarespace Payments compare?
Squarespace Payments takes a different approach. Its processing fees depend on your Squarespace website subscription, with lower rates offered on the more expensive Plus and Advanced plans.
For UK businesses, the published fees are:
| Card type | Core | Plus | Advanced |
|---|---|---|---|
| UK personal cards | 2.0% + 25p | 1.7% + 25p | 1.5% + 25p |
| UK business/corporate cards | 3.0% + 25p | 3.0% + 25p | 3.0% + 25p |
| International surcharge | +1% | +1% | +1% |
| American Express | 3.0% + 25p | 3.0% + 25p | 3.0% + 25p |
Looking at the table, it looks like Squarespace Payments offers a lower processing fee, especially on higher website plans. But is it really cheaper?
Unlike Stripe, Squarespace Payments applies the same international card surcharge regardless of whether the card was issued in the EEA or elsewhere. This means that with Squarespace Payments, an international personal card costs much more! It is 3.0% + 25p on Core, or 2.7% + 25p on Plus.
And that's where the comparison becomes particularly revealing.
Stripe is cheaper for UK personal cards
Let's take a typical Β£100 transaction paid for using a standard UK personal debit or credit card.
| Payment processor | Processing fee |
|---|---|
| Stripe | Β£1.70 |
| Squarespace Payments Core | Β£2.25 |
| Squarespace Payments Plus | Β£1.95 |
| Squarespace Payments Advanced | Β£1.75 |
Stripe is cheaper than Squarespace Payments on every plan, including Advanced.
On Core, you're paying an additional 55p for every Β£100 transaction. That's approximately 32% more in processing fees.
Even upgrading to Plus doesn't beat Stripe's standard rate, and upgrading to Advanced only gets you close.
For businesses processing thousands of pounds in domestic card payments every month, those differences add up.
