Stripe vs PayPal Fees: Which One Costs Less? (2025 Guide)

Choosing the right payment processor can save your business thousands each year. In 2025, Stripe and PayPal remain the top choices for online payments, but their fee structures and features are different. This guide will help you compare them in detail, with real-world examples and actionable tips.

Why Compare Stripe and PayPal Fees?

• Fees directly impact your profit margin
• The best choice depends on your business model, transaction size, and customer base
• Both platforms update their pricing regularly—always check the latest rates

Stripe vs PayPal: Fee Structures Explained

Standard Domestic Fees (US)

• Stripe: 2.9% + $0.30 per transaction
• PayPal: 2.99% + $0.49 per transaction

International Fees

• Stripe: +1% for international cards, +1% for currency conversion
• PayPal: 4.4% + fixed fee (varies by country), plus currency conversion

Chargeback and Refund Fees

• Stripe: $15 per chargeback (refunded if you win)
• PayPal: $20 per chargeback (non-refundable)
• Refunds: Both refund the processing fee minus the fixed portion

Payout Speed

• Stripe: 2 business days (US), can be faster with Instant Payouts
• PayPal: Instant to PayPal balance, 1–3 days to bank

Real-World Example Calculations

| Transaction | Stripe (US) | PayPal (US) | Stripe (Intl) | PayPal (Intl) | |-------------|-------------|-------------|---------------|---------------| | $100 | $3.20 | $3.48 | $4.20 | $5.29 | | $1,000 | $29.30 | $30.39 | $39.30 | $52.29 | | $5,000 | $145.30 | $149.49 | $195.30 | $257.29 |

• Stripe (Intl): 2.9% + $0.30 + 1% = 3.9% + $0.30
• PayPal (Intl): 4.4% + $0.49

Try your own numbers with our Stripe Fee Calculator and PayPal Fee Calculator.

Step-by-Step: How to Compare Your Own Fees

1. Estimate your average transaction size and volume.
2. Use our calculators (Stripe, PayPal) to see your real costs.
3. Consider your customer base: Are most payments domestic or international?
4. Check for additional fees: Chargebacks, refunds, currency conversion.
5. Review payout speed and support options.

Pros, Cons, and Best Use Cases

Stripe

• Pros: Transparent pricing, developer-friendly, custom checkout, fast payouts
• Cons: No built-in invoicing, less brand recognition for buyers
• Best for: SaaS, e-commerce, high-volume businesses, custom integrations

PayPal

• Pros: Instant access to funds, buyer/seller protection, easy invoicing, global reach
• Cons: Higher international fees, less transparent pricing, account holds
• Best for: Freelancers, small businesses, international clients, marketplaces

Actionable Tips to Minimize Payment Processor Fees

• Batch transactions to reduce per-transaction fixed fees
• Negotiate custom rates if you process high volume ($80k+/month)
• Use the right platform for your audience (Stripe for custom checkout, PayPal for invoicing)
• Avoid unnecessary currency conversions
• Monitor for chargebacks and respond quickly

In-Depth FAQ

Which is cheaper for international payments?

Stripe usually has lower international fees, but always compare for your country and currency.

Which is better for freelancers?

PayPal is great for invoicing and instant access to funds. Stripe is better for custom checkouts and lower fees on large transactions.

Can I use both Stripe and PayPal?

Yes! Many businesses offer both to maximize customer choice and conversion.

How do refunds and chargebacks work?

Both charge a fee for chargebacks. Refunds return the processing fee minus the fixed portion.

Are there monthly or hidden fees?

Neither Stripe nor PayPal charges monthly fees for standard accounts, but always check for updates.

References & Further Reading

• Stripe Official Pricing
• PayPal Merchant Fees
• Cebofo Stripe Fee Calculator
• Cebofo PayPal Fee Calculator
• NerdWallet: Stripe vs PayPal

Compare your real costs now: Stripe Fee Calculator | PayPal Fee Calculator