PayPal vs Stripe Fees 2025: Complete Comparison
Detailed analysis of PayPal and Stripe processing fees, including domestic, international, and ACH rates. Find out which payment processor costs less for your business.
Quick Fee Comparison (2025)
Side-by-side comparison of standard rates
| Transaction Type | PayPal | Stripe | Winner |
|---|---|---|---|
| US Credit/Debit Cards | 2.9% + $0.30 | 2.9% + $0.30 | Tie |
| International Cards | 4.4% + $0.30 | 3.9% + $0.30 | Stripe |
| ACH/Bank Transfers | 1.0% (max $10) | 0.8% (max $5) | Stripe |
| Monthly Fees | $0 | $0 | Tie |
Choosing between PayPal and Stripe can significantly impact your business costs. While both processors charge similar rates for domestic transactions, the differences become clear when you examine international fees, ACH processing, and advanced features.
Domestic Transaction Fees
For US domestic credit and debit card transactions, both PayPal and Stripe charge identical rates: 2.9% + $0.30 per transaction. This means for a $100 sale:
$100 Domestic Sale Example:
- • Processing fee: $100 × 2.9% + $0.30 = $3.20
- • You receive: $96.80
- • Same for both PayPal and Stripe
International Transaction Fees
International card processing is where Stripe gains a clear advantage. PayPal charges4.4% + $0.30 for international cards, while Stripe charges only3.9% + $0.30 - a 0.5% difference that adds up quickly.
$100 International Sale Comparison:
PayPal
- • Fee: $100 × 4.4% + $0.30 = $4.70
- • You receive: $95.30
Stripe
- • Fee: $100 × 3.9% + $0.30 = $4.20
- • You receive: $95.80
- • Save $0.50 per $100
ACH and Bank Transfer Fees
For ACH (bank-to-bank) transfers, Stripe again offers better rates. This is particularly important for B2B businesses or high-value transactions where customers prefer bank transfers.
| Provider | ACH Rate | $1,000 Transfer Cost |
|---|---|---|
| PayPal | 1.0% (max $10) | $10.00 |
| Stripe | 0.8% (max $5) | $5.00 |
Hidden Costs and Additional Fees
PayPal Additional Costs
- Currency conversion fees: 3-4% above market rate
- Chargeback fee: $20 per dispute
- PayPal Pro: $30/month for advanced features
- Micropayments: 5% + $0.05 (for transactions under $10)
Stripe Additional Costs
- Chargeback fee: $15 per dispute
- Radar fraud prevention: 0.7% per transaction (optional)
- Billing/subscriptions: 0.5% additional fee
- Express accounts: No additional platform fees
Cost Calculator Examples
Small E-commerce Store
$10,000/month, 80% domestic, 20% international
- • Domestic (80%): $8,000 × 2.9% + 200 × $0.30 = $292
- • International (20%): $2,000 × 4.4% + 50 × $0.30 = $103
- • Total: $395/month
- • Domestic (80%): $8,000 × 2.9% + 200 × $0.30 = $292
- • International (20%): $2,000 × 3.9% + 50 × $0.30 = $93
- • Total: $385/month
Service Business
$50,000/month, 60% domestic cards, 40% ACH
- • Cards (60%): $30,000 × 2.9% + 300 × $0.30 = $960
- • ACH (40%): $20,000 × 1.0% = $200
- • Total: $1,160/month
- • Cards (60%): $30,000 × 2.9% + 300 × $0.30 = $960
- • ACH (40%): $20,000 × 0.8% = $160
- • Total: $1,120/month
Beyond Cost: Other Considerations
PayPal Advantages
- Higher customer recognition and trust
- Buyer protection increases conversion rates
- Easy checkout without entering card details
- Seller protection against chargebacks
- 200+ countries and 100+ currencies
- Quick setup for non-technical users
Stripe Advantages
- Superior developer tools and APIs
- Seamless checkout experience
- Advanced fraud prevention (Radar)
- Better recurring billing features
- Transparent, predictable pricing
- Faster payouts and better reporting
Recommendations
Choose PayPal if:
- You want quick setup with minimal technical requirements
- Your customers prefer PayPal's familiar checkout process
- You process mostly domestic transactions
- You need seller protection for physical goods
Choose Stripe if:
- You process significant international card volume
- You use ACH/bank transfers regularly
- You need custom payment flows or advanced features
- You want transparent pricing and better developer tools
Frequently Asked Questions
Which is cheaper: PayPal or Stripe?
For domestic credit card transactions, both charge 2.9% + $0.30. Stripe is cheaper for international cards (3.9% vs 4.4%) and offers better ACH rates (0.8% vs 1.0%). The total cost depends on your transaction mix and volume.
Does PayPal have monthly fees that Stripe doesn't?
Both PayPal and Stripe have no monthly fees for standard accounts. However, PayPal's advanced features and merchant accounts may include monthly fees, while Stripe's add-ons are typically pay-per-use.
Which payment processor is better for small businesses?
Stripe is generally better for tech-savvy businesses needing custom integration, while PayPal is better for quick setup and customer recognition. Consider your technical needs, transaction volume, and customer preferences.
Do PayPal and Stripe fees include credit card network fees?
Yes, both PayPal and Stripe include Visa, Mastercard, and other network fees in their quoted rates. You don't pay separate network fees on top of their processing fees.
Calculate Your Exact Costs
Use our free calculators to compare PayPal and Stripe fees for your specific business needs.