Stripe vs PayPal vs Square: Best Payment Processing for Real Estate Brokerages
For real estate agencies and brokerages, payment processing isn't just about collecting a check. It's about securely handling earnest money, processing agent commissions, and managing recurring property management fees. Understanding the fees, hold times, and dispute processes for Stripe, PayPal, and Square can save your new brokerage significant time and money.
READY TO TAKE ACTION?
Use the free LaunchAdvisor checklist to track every step in this guide.
The Quick Answer
For a real estate brokerage, the best payment processor depends on how you collect money. Stripe excels for online transactions like property management fees, lease application fees, or integrating payments directly into your CRM. Square is best for in-person payments, such as collecting agent desk fees or processing a small earnest money deposit at an open house, with its user-friendly POS hardware. PayPal works well for quick, one-off payments, especially from international clients, or when you need a simple way to collect an earnest money deposit without technical setup.
Side-by-Side Breakdown
Stripe: 2.9% + 30c for online payments (e.g., application fees, recurring property management payments). 2.7% + 5c for in-person card swipes, though less common for high-value real estate transactions. No monthly fee for standard use. Best for automating payments within your brokerage system, handling escrow funds with specific integrations, and managing international transactions for global clients.
PayPal: 3.49% + 49c for online payments. 2.29% + 9c for in-person via PayPal Zettle. Recognized globally, making it useful for international buyers submitting earnest money. Be aware of their aggressive account holds, which can be problematic for large, time-sensitive real estate transactions like earnest money deposits.
Square: 2.6% + 10c for in-person transactions using Square hardware. 2.9% + 30c for online payments. Square’s point-of-sale (POS) system can track small payments like agent printing fees or an immediate, small earnest money deposit at an open house. It offers basic reporting, which can help manage agent-related expenses if used in-office.
When to Choose Stripe
Choose Stripe if your brokerage plans to handle many online transactions. This includes collecting online lease application fees, recurring property management fees, or securely processing earnest money deposits via a custom portal. Stripe easily integrates with many real estate CRMs (Customer Relationship Management systems) and accounting software, streamlining your operations. It’s also ideal for brokerages dealing with international clients who need straightforward payment options and currency conversion for large sums.
When to Choose Square
Choose Square if your brokerage primarily collects smaller, in-person payments. This could be for agent desk fees, class registration, or immediate small deposits at an open house. Square’s simple card readers are perfect for quick, secure swipes at your office or even on the go with an agent. While its inventory and staff features are less relevant for real estate, its ease of use for physical payments is unmatched.
When to Choose PayPal
Choose PayPal if you need to quickly accept an earnest money deposit or a referral fee without any complex setup. It's also a strong option for international clients who might prefer PayPal over credit cards or bank transfers, especially in markets where it's widely trusted. However, be cautious with very large or time-sensitive transactions due to PayPal's history of holding funds, which can cause significant delays in real estate deals.
The Verdict
For a new real estate brokerage, Stripe is generally the best primary choice if you're building an online presence for applications, property management, or collecting larger online deposits securely. Square works well for in-office or on-the-go smaller, immediate payments. Use PayPal as a backup for international clients or quick, smaller earnest money transfers, but be very cautious about making it your main payment method due to potential fund holds that can disrupt time-critical real estate transactions.
How to Get Started
Stripe: Go to stripe.com, create a business account, and verify your real estate brokerage details. You can start accepting online payments through their no-code payment links or integrate with your CRM.
Square: Sign up at squareup.com, request a free card reader for in-person payments, and download their POS app. This setup is quick for collecting fees at your office or showings.
PayPal: Create a business account at paypal.com/business. You can add a PayPal button to your brokerage's website or send payment requests directly via email for earnest money or referral fees.
RECOMMENDED TOOLS
Stripe
Online payment processing with industry-leading API
Square
In-person POS + online payments with free hardware
PayPal Business
Global payments accepted by 400M+ consumers
Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.
FREQUENTLY ASKED QUESTIONS
Can I use Stripe and PayPal together?
Yes. Many businesses use Stripe as the primary processor and add PayPal as a secondary option at checkout. This adds 5-15% additional conversion for customers who prefer PayPal. The trade-off is two separate payout schedules and two reconciliation streams.
Why do PayPal accounts get held?
PayPal holds funds when their fraud algorithms flag unusual activity — a sudden spike in volume, high-value transactions, or a spike in disputes. Holds can last 180 days in extreme cases. Stripe and Square also have hold policies, but they are generally less aggressive and more transparent about resolution.
What are interchange fees and do I pay them?
Interchange is the fee the card network charges the payment processor. With flat-rate pricing, you pay the listed rate and the processor absorbs variance. With interchange-plus pricing (available at higher volumes), you pay interchange directly plus a small markup — cheaper at scale.