Stax vs. Block (Square): Key Differences at a Glance
The core difference comes down to pricing. Stax uses a monthly subscription model with very low per-transaction fees, making it ideal for businesses with high sales volume. Block (Square) uses a simpler pay-as-you-go model with a higher percentage fee per transaction, which is perfect for new businesses or those with lower, less predictable revenue.
Feature | Stax | Block (Square) |
|---|---|---|
Best For | Established online businesses, agencies, and consultants processing over $5,000/month. | New freelancers, solopreneurs, and businesses with low or fluctuating monthly revenue. |
Cost Structure | Subscription model (starts at $99/mo) + low fixed transaction fees (e.g., $0.15 for keyed-in/online payments). | Per-transaction model (no monthly fee). 3.5% + $0.15 for keyed-in/online payments. |
Payment Speed | 1-3 business days. Same-day funding is available. | Next business day (standard). Instant transfers are available for a fee. |
International Currencies | Processes payments in USD. International cards accepted. | Accepts payments from most international cards. Funds are settled in your account's currency (e.g., USD). |
Ease of Setup | More complex. Requires an underwriting process and business details. | Very simple. Quick sign-up process with minimal underwriting. |
Key Features for Nomads | Digital invoicing, recurring payments, API for custom integrations, QuickBooks sync, surcharging to pass fees to clients. | Simple invoicing, payment links, easy app integrations, free online store builder (Weebly). |
A Closer Look at Stax
Stax is built for businesses that are ready to scale. Its subscription model means that once you cover the monthly fee, your transaction costs are minimal. This is a huge advantage as your revenue grows, because your payment processing fees won't grow with it. Think of it as wholesale pricing for payments.
Who Should Use Stax?
Stax is the perfect choice for digital nomads running established service businesses like marketing agencies, consulting firms, web development shops, or high-volume e-commerce stores through their US LLC. If you're consistently processing more than $5,000 to $10,000 per month, the math starts to heavily favor Stax's subscription model. Their robust features like API access, recurring billing, and accounting integrations are designed for a professional, automated workflow.
Stax Fees Explained
Stax has a transparent pricing structure with plans starting at $99/month. This fee covers up to $500,000 in annual processing. With any plan, you get access to direct-cost interchange rates (the wholesale cost from card networks like Visa/Mastercard) plus a very small fixed fee per transaction (e.g., $0.15 for an online payment).
GROWTH ($99/month): Perfect for getting started with digital invoicing and basic analytics.
PRO ($159/month): Adds key features for online businesses like payment links (Text2Pay), API access for website integration, and QuickBooks Online sync.
ULTIMATE ($199/month): Includes a one-click shopping cart, advanced reporting, and automatic card updating for subscriptions.
The key takeaway is this: you pay a flat monthly fee to eliminate the percentage-based markup that other processors charge.
A Closer Look at Block (Square)
Block's payment service, Square, is famous for its simplicity and accessibility. It democratized payment processing, allowing anyone to start accepting card payments in minutes. For digital nomads just starting out, this ease of use is a major selling point. There are no monthly fees, no contracts, and no complex underwriting process.
Who Should Use Block (Square)?
Square is ideal for new freelancers, solopreneurs, and online businesses with lower or inconsistent monthly revenue. If you're not sure how much you'll process each month, or if your average transaction size is small, Square's pay-as-you-go model is more economical. You only pay when you make a sale. It’s the perfect, no-commitment way to professionalize your invoicing and get paid by clients with a credit card.
Block (Square) Fees Explained
Square's pricing is incredibly straightforward, which is its main appeal. There are no monthly fees for the standard plan.
For online or manually keyed-in payments: You pay 3.5% + 15¢ per transaction.
For in-person payments with a reader: The rate is 2.6% + 10¢ per transaction (less relevant for most digital nomads).
That's it. The fee is higher on a percentage basis, but you have zero fixed costs. If you have a month with no sales, you pay nothing.
Head-to-Head Comparison for Online Businesses
Costs: The Break-Even Point
This is the most important comparison. Let's break it down.
Imagine you invoice a client for $1,000 online.
With Square: The fee would be ($1,000 \* 3.5%) + $0.15 = $35.15.
With Stax (Pro Plan): The fee would be just $0.15 (plus the direct-cost interchange, typically ~1.8-2.5%). Even at the high end, your total might be ~$25.15. The real savings come at scale. If you process $10,000 in a month, your Square fees would be ~$351.50. With Stax, your fees would be the $159 monthly subscription plus transaction fees, likely totaling around $200-$250.
Winner: It's a Tie. Block (Square) wins for businesses processing under ~$5,000/month. Stax wins for businesses processing over that amount, with savings increasing significantly as volume grows.
Ease of Use: Getting Started
For a non-US citizen setting up an account for their US LLC, a simple onboarding process is a huge plus. Square is the clear winner here. You can sign up online in minutes and start sending invoices right away. Stax has a more traditional merchant account application process that involves underwriting, where they review your business in more detail. It's not difficult, but it's more involved.
Winner: Block (Square)
Speed of Payment: Getting Your Money
Both services are fast, but Square has a slight edge. Their standard deposit schedule is the next business day, and they offer an instant transfer to a debit card for a small fee. Stax typically takes 1-3 business days, though same-day funding is available as an add-on.
Winner: Block (Square)
Security & Compliance
Both platforms are highly secure and PCI compliant, which means they handle sensitive card data according to strict industry standards. As a business owner, this means you don't have to worry about it. However, Stax operates as a direct Level 1 PCI processor and provides tools and support to help your business maintain its own compliance, which is a sign of a more robust, enterprise-grade system. Square simplifies this by acting as the merchant of record, effectively taking compliance off your plate entirely.
Winner: Stax (for its robust infrastructure)
Customer Support
When you're in a different time zone, good support is vital. Both offer comprehensive support through phone, email, and knowledge bases. However, Stax is known for more personalized, in-house support. Because they have fewer customers than the goliath that is Square, you're more likely to get dedicated attention. Square's support is effective but can feel more automated due to its massive scale.
Winner: Stax
