Stripe vs PayPal: Fee ComparisonWhich Payment Processor Is Cheaper for Your Business?
Compare Stripe and PayPal fees side by side. Enter any transaction amount to see the exact difference in fees, net payouts, and effective rates for your currency.
Compare Fees for Your Amount
Stripe vs PayPal: The Quick Verdict
In the US: Stripe is cheaper at every transaction amount. Stripe charges 2.9% + $0.30 versus PayPal's 3.49% + $0.49. On a $100 payment, you save $0.78 with Stripe. At 1,000 transactions per month, that's $780/month in savings.
However, fees aren't the only factor. PayPal's brand recognition, buyer protection program, and one-click checkout can increase conversion rates by 10–30%. Many businesses offer both payment methods and let customers choose.
Fee Comparison at Common Amounts
The table below shows exactly how Stripe and PayPal fees compare at common transaction amounts using US domestic rates. The “You Save” column shows how much less you pay with Stripe.
| Amount | Stripe Fee | Stripe Net | PayPal Fee | PayPal Net | You Save |
|---|---|---|---|---|---|
| $10 | −$0.59 | $9.41 | −$0.84 | $9.16 | $0.25 |
| $25 | −$1.03 | $23.97 | −$1.36 | $23.64 | $0.33 |
| $50 | −$1.75 | $48.25 | −$2.24 | $47.76 | $0.49 |
| $100 | −$3.20 | $96.80 | −$3.98 | $96.02 | $0.78 |
| $250 | −$7.55 | $242.45 | −$9.22 | $240.78 | $1.67 |
| $500 | −$14.80 | $485.20 | −$17.94 | $482.06 | $3.14 |
| $1,000 | −$29.30 | $970.70 | −$35.39 | $964.61 | $6.09 |
“You Save” shows the difference when choosing Stripe over PayPal. Rates: Stripe 2.9% + $0.30, PayPal 3.49% + $0.49 (US domestic). Fees differ by region — use the calculator above and select your currency to see local rates.
Stripe vs PayPal: Full Feature Comparison
| Feature | Stripe | PayPal |
|---|---|---|
| US Transaction Fee | 2.9% + $0.30 | 3.49% + $0.49 |
| EU Transaction Fee | 1.4% + €0.25 | 1.99% + €0.35 |
| Monthly Fee | None | None (Pro: $30/mo) |
| Chargeback Fee | $15 (refundable if won) | $20 (non-refundable) |
| International Card Fee | +1.5% | +0.5–2% |
| Currency Conversion | +1% | 3–4% spread |
| Refund Policy | Fee retained | Percentage refunded, fixed kept |
| Payout Speed | 2 days (instant: 1%) | Instant (1.75%, max $25) |
| Volume Discounts | $80K+/month | $10K+/month |
| Developer Experience | Excellent (best-in-class API) | Good (improving) |
| Brand Trust | Behind the scenes | Strong consumer brand |
| One-Click Checkout | Link (growing) | Yes (widely adopted) |
Break-Even Point: When Does One Become Cheaper?
In the US, Stripe is cheaper at every amount because both its percentage fee (2.9% vs 3.49%) and fixed fee ($0.30 vs $0.49) are lower. There is no break-even point — Stripe always wins on price.
In some regions (like the EU and UK), the fee structures create a crossover. For example, if one processor has a lower percentage but higher fixed fee, there's an amount where both cost the same. Below that amount, the lower fixed-fee processor is cheaper; above it, the lower percentage wins.
Use the calculator above with your currency selected to see whether a break-even point exists in your region and at what amount it occurs.
When to Choose Stripe
- You want the lowest fees — Stripe is cheaper in most regions
- You need developer-friendly APIs — Stripe's documentation and SDKs are industry-leading
- You process subscriptions — Stripe Billing is purpose-built for recurring payments
- You want a seamless embedded checkout — Stripe Elements integrates directly into your site
- You need advanced fraud prevention — Stripe Radar uses machine learning across millions of merchants
When to Choose PayPal
- Your customers expect PayPal — 400M+ active accounts and strong brand trust
- You sell to international buyers — PayPal is widely trusted in markets where credit card adoption is low
- You want buyer protection features — PayPal's dispute resolution is familiar to consumers
- You need quick setup — PayPal buttons can be added with minimal technical knowledge
- You want volume discounts earlier — PayPal offers reduced rates starting at $10K/month vs Stripe's $80K
Best Practice: Offer Both
Most successful businesses offer both Stripe and PayPal at checkout. Use Stripe as your primary processor for lower fees, and offer PayPal as an option to capture customers who prefer it.
Frequently Asked Questions
Is Stripe or PayPal cheaper for US transactions?
Stripe is cheaper at every transaction amount in the US. Stripe charges 2.9% + $0.30 versus PayPal's 3.49% + $0.49. On a $100 transaction, you save $0.78 with Stripe. The savings increase with larger amounts.
When is PayPal cheaper than Stripe?
In some regions like the EU and UK, PayPal and Stripe have different fee structures where one may be cheaper below or above a certain break-even amount. Use our calculator with your currency selected to find the exact crossover point for your region.
Should I offer both Stripe and PayPal?
Yes, offering both is recommended. Stripe provides the best developer experience and lower fees, while PayPal's brand recognition and buyer protection can increase conversion rates by 10-30%. Let customers choose their preferred method at checkout.
What is the break-even point between Stripe and PayPal?
In the US, there is no break-even point — Stripe is cheaper at all amounts because both its percentage (2.9% vs 3.49%) and fixed fee ($0.30 vs $0.49) are lower. In regions where one has a lower percentage but higher fixed fee, a crossover exists. Our calculator shows this for each currency.
Which is better for small businesses, Stripe or PayPal?
For most small businesses, Stripe offers lower fees and better developer tools. PayPal may be better if your customers prefer it or if you need PayPal's brand trust for higher conversion. Many small businesses use both: Stripe as primary and PayPal as an option.
How do Stripe and PayPal fees compare internationally?
Both processors charge extra for international transactions. Stripe adds 1.5% + 1% for currency conversion. PayPal adds 1.5% cross-border + a 3-4% currency conversion spread. For international sales, Stripe is generally cheaper, but always compare with your specific currencies using our calculator.