Stripe Terminal Review: Lots of Potential If You Know How to Code
Stripe Terminal’s card readers make it easy to accept payments on the go. If you need a more complex POS setup, though, you’ll likely need developer experience.
The bottom line:
Stripe Terminal is like a playground for developers. You can use it to build your own custom in-person POS solution, powered by Stripe’s payment processing capabilities. Stripe does have out-of-the-box card readers if you aren’t into coding. But if you need POS software features (e.g., staff management, inventory tracking) and don’t know how to use developer tools, go with a different option.
Software details
Payment processing fees
In-person: 2.7% + $0.05
Online: 2.9% + $0.30
Monthly fee
$0
Pros & Cons
Pros
No monthly software fees.
No long-term contracts.
24/7 support.
Supports more than 135 currencies.
Cons
Doesn’t include a POS app or standard POS capabilities.
Custom POS hardware integrations require coding.
Compare to other products
Payment processing fees
In-person: 2.7% + $0.05
Online: 2.9% + $0.30
Payment processing fees
In-person: 2.6% + $0.15
Online: 3.3% + $0.30
Payment processing fees
In-person: 2.6% + $0.10
Online: 2.9% + $0.30
Payment processing fees
In-person: 0.4% + $0.08
Online: 0.5% + $0.25
Plus interchange
Need more options? Check our picks for best payment processing systems
Square: Better out-of-the-box POS solution. Unlike Stripe, Square offers a variety of POS software plans. You’ll find inventory tracking, employee management tools and a loyalty rewards program, among other features. Plans range from $0 to $149 per month. Read our full Square review.
» MORE: Stripe vs. Square
Shopify: Better for building websites. Stripe lets you send payment links and add checkout modules to your website. But let’s say you haven’t even built a website yet. If you need a professional looking online storefront and don’t have developer experience, Shopify is a good place to start. It has hundreds of pre-built templates to choose from. Read our full Shopify review.
» MORE: Stripe vs. Shopify
Helcim: Better for interchange-plus pricing. Stripe uses flat-rate pricing for its payment processing. This model is easy to understand, but it’s not the most cost-efficient for businesses processing tens of thousands of dollars per month. Helcim charges interchange rates plus a small markup instead. This can help higher volume businesses save money in processing costs. Read our full Helcim review.
Full review
Stripe is well known as a payment processing platform for e-commerce businesses. But the company also offers Stripe Terminal for in-person transactions.
The product can work for online businesses that accept in-person payments here and there. But if you aren’t using one of Stripe’s compatible readers or pre-built integrations, you need to develop custom code. That’s why Stripe Terminal is best for business owners who are comfortable with developer tools and need a highly customized POS solution.
Stripe Terminal is not a full-fledged POS system. I think of it more as an integration. You use it to connect hardware to Stripe’s payment processing capabilities.
That’s easy enough if you use one of Stripe’s no-code hardware options. For example, the company’s M2 and S700/S710 readers let you start accepting payments right away. Or, if you want to skip the hardware altogether, you can use Tap to Pay on your smartphone.
The problem is that these solutions don’t have built-in POS software features, like inventory tracking or staff management tools. This leaves the typical brick-and-mortar business in a lurch.
You’ll need to build that functionality yourself or integrate with a third-party option for it. Some options, like Lightspeed and Shopify, have built-in integrations with Stripe. If you’d like to use an unsupported POS system, though, you’ll need to use developer tools.
Businesses that don’t already use Stripe for online sales will be better off with a more straightforward POS system, like Square or Shopify. Using the same provider for online and in-person transactions is much simpler than integrating separate payment providers.
Stripe Terminal is best for:
✔️ Have access to developer resources.
✔️ Highly customized POS solutions.
✔️ Mixing and matching POS hardware and software.
Deciding factors
| Payment processing model | Flat rate. |
| Payment processing fees |
|
| Monthly fee |
|
| Hardware cost |
|
| Contract length | No long-term contracts. |
| Customer support | 24/7 live chat, email and call-back support. |
» MORE: Stripe fees
Where Stripe Terminal stands out
Highly customizable
Stripe Terminal gives you more control over your POS interface and checkout flow than out-of-the-box competitors. For example, you can use it to create customized email receipts and branded splash screens for your card terminals.
You can also build integrations with third-party apps and devices. This comes in handy if you use Stripe to accept online payments and a different provider for accepting in-person payments.
While this flexibility isn’t useful for every small business, it can be valuable in the hands of experienced developers.
Decent selection of card readers and terminals
Stripe Terminal offers no-code options for accepting payments in-person. They include mobile readers and handheld terminals with touchscreens. Upfront costs range from $59 to $299, which is pretty competitive.
Stripe doesn’t offer countertop POS registers. But its card readers and handheld terminals will do the job for businesses that need to accept in-person payments once in a while and already use Stripe to process online transactions.
💬 From our Nerds: Third-party hardware costs
"Stripe lists the pricing for certain hardware devices and not others. I contacted them to find out why.
"It turns out that Stripe also sells third-party hardware. A representative said these options are priced on a case-by-case basis. That’s why the company doesn’t list their cost outright. If the price ranges from business to business, that means you can try negotiating it down.
"To get the best deal, look for similar terminals and make a list of how much each costs. If Stripe asks you to pay more, tell them it’s not a competitive offer based on your research. Don’t be afraid to push back if needed.
"For example, Stripe says you need to contact the sales team to find out how much the Verifone V660p terminal costs. A quick search shows other companies sell it for anywhere from $439 to $485. Personally, if it were me, I wouldn’t pay more than $439 based on that."
— Hillary Crawford, lead writer covering small business
Where Stripe Terminal falls short
Limited use cases
Stripe Terminal’s customizability is definitely a plus. But I’d guess the average small-business owner doesn’t have time to learn how to take full advantage of it.
I understand the value of having a highly personalized POS solution if you’re willing to build it yourself or have a larger business. I don’t, however, feel the same way about Stripe Terminal’s third-party POS integrations. That’s because most POS hardware providers make it easy — and often worth your while — to use their in-house payment solutions.
For instance, Shopify integrates with Stripe Terminal. But if you don’t use its processing option, Shopify Payments, there’s a surcharge of up to 2%. That’s on top of Stripe’s costs, pushing your total fees above 4% per transaction. Maybe there’s a reason to do this. But to me, it feels like a very expensive, niche use case.
What small-business owners think of Stripe
I checked online forums like Reddit and reviews from sites like TrustPilot, G2, the App Store and Google Play to gauge how users feel about Stripe. I used an AI tool to help analyze this feedback. Here are the major trends I spotted.
👍 Developer documentation
Developing software is foreign to me, but people familiar with it seem to really appreciate Stripe’s developer resources. Reddit comments suggest Stripe’s API is relatively easy to work with, especially compared to the competition.
👎 Account closures
Lots of online commenters say Stripe unexpectedly closed their accounts. This is a common complaint among businesses that choose payment service providers (PSPs), like Stripe or Square.
That’s because they have lower risk tolerance than dedicated merchant account providers, like Helcim or Chase Payment Solutions. PSPs are more likely to flag accounts for what they perceive as suspicious activity or high-risk transactions.
Dedicated merchant account providers can help you avoid these situations. They assign you your own individual account for credit card funds, as opposed to aggregating multiple businesses’ funds into a shared account. However, these providers often have more rigorous application processes. This can be a pain, especially if you need to get up and running immediately.
How we evaluated Stripe Terminal
Stripe Terminal is a bit of an anomaly when it comes to payment products. It’s not a fully functioning POS system, because it’s missing POS software features. And it’s not really a payment processor. But it is a distinct solution within Stripe’s payment processing platform.
That’s why I chose to score it as a payment processor instead of running it through our POS systems rubric. That means Stripe Terminal receives the same star rating as Stripe.
NerdWallet’s writers and editors independently review payment processors, like Stripe, by analyzing more than 30 data points. To evaluate Stripe and its other products, I collected data from its public-facing website, help articles and company representatives.
I also looked through individual reviews and feedback on sites like Trustpilot, the App Store, Google Play and Reddit. Then, I used AI tools to help spot larger trends within those comments.
Since our team cannot verify each user’s individual experience, we don’t incorporate user reviews in our star ratings. For more information on how we score payment processors, see our full methodology.