Stripe vs PayPal Fees: Which Processor Actually Costs Less
Stripe charges 2.9% + $0.30, PayPal charges 3.49% + $0.49 for standard online payments. But the real difference hides in currency conversion, disputes, and payout timing. Here is the full comparison.
Last reviewed 2026-10-18.
The headline rates
For standard online card processing, Stripe takes 2.9% + $0.30 per successful charge and PayPal takes 3.49% + $0.49. On a $50 sale that is $1.75 vs $2.24 — Stripe keeps about $0.49 more in your pocket per order. On 100 orders a month the gap is roughly $590 a year; the percentage gap widens further as the ticket grows.
Both add about 1.5% for international cards, so the relative gap stays about the same for cross-border sales.
Where the real costs hide
Currency conversion is the big one. Stripe converts at about a 1% markup; PayPal's conversion markup runs closer to 4%. If you charge in USD and settle in another currency, that 3-point difference dwarfs the 0.59% rate-card gap — a $1,000 monthly payout converted by PayPal costs roughly $30 more than Stripe's.
Disputes differ too: Stripe charges $15 per chargeback and refunds it if you win; PayPal charges about $20 and keeps it either way. And PayPal is notorious for 21-day holds and rolling reserves on new or 'risky' accounts — a cash-flow cost that never appears on a fee page.
Why stores offer both anyway
If Stripe is cheaper, why does every serious checkout still show a PayPal button? Because a measurable slice of buyers will only complete a purchase with PayPal — stored credentials, buyer protection, no card number entry. Losing that sale costs 100% of the order, not the 0.6% rate difference.
The standard setup is Stripe as the primary processor plus PayPal as a wallet option. The PayPal-routed transactions cost a bit more, but the conversion lift on PayPal-loyal buyers more than pays the difference.
The one case where PayPal wins on price
Micropayments. PayPal's micropayment rate (4.99% + $0.09) beats Stripe's standard rate on tickets under about $12 — a $5 transaction costs $0.34 vs $0.45. Stripe has a similar micropayment rate (5% + $0.05) but you must ask for it. For digital goods, tips, or low-priced content, run both through the PayPal vs Stripe calculator before committing.
Run the numbers yourself
Compare PayPal and Stripe processing costs at your ticket size and volume — see which is cheaper for your business and by how much.
Calculate the exact Stripe fee on any transaction — domestic cards, international cards, currency conversion and ACH — plus your monthly totals.
Calculate PayPal seller fees on any transaction — domestic, international and micropayment rates — and see what you actually keep.