PayPal vs Stripe Fees Compared

If you sell online, you have probably narrowed your payment options down to PayPal, Stripe, or both. They are the two names most small businesses encounter first — and for good reason. Both work globally, integrate with major platforms, and handle cards without you needing a merchant bank relationship.

The problem is that their pricing looks similar on paper until you run real numbers. A 2.9% rate on one platform is not always the same effective cost as 2.9% on another once you factor in fixed fees, international cards, currency conversion, and how your customers actually pay.

This guide breaks down what each provider charges, where the costs differ, and how to decide which one makes sense for your store.

How PayPal and Stripe structure their fees

Both platforms use a percentage-plus-fixed-fee model for most card and wallet payments. You pay a slice of each transaction plus a small flat amount — typically around $0.30 in the US.

PayPal is often chosen because buyers already trust it. Checkout can route through a PayPal balance, a linked bank, or a card. Sellers pay domestic rates for payments within the same country and higher rates when the buyer is abroad or when currency conversion is involved.

Stripe is built for developers and ecommerce platforms. It sits behind your checkout and processes cards directly. Domestic and international card rates are listed separately, and keyed-in (manual) card entry costs more because of higher fraud risk.

Neither platform publishes one universal rate. Your country, your customer's location, and the payment method all change the final number.

US fee comparison at a glance

For a standard US ecommerce sale, these are the typical starting rates (before volume discounts or special pricing):

PayPal's fixed fee in the US is slightly higher than Stripe's on domestic sales. That matters more on small orders than large ones.

Example — $50 domestic sale

• PayPal: $50 × 2.99% + $0.49 = $1.99 in fees → you keep $48.01
• Stripe: $50 × 2.9% + $0.30 = $1.75 in fees → you keep $48.25

On a $50 order, Stripe saves you about $0.24. That does not sound like much until you multiply it across hundreds of orders a month.

Example — $200 domestic sale

• PayPal: $200 × 2.99% + $0.49 = $6.47 → net $193.53
• Stripe: $200 × 2.9% + $0.30 = $6.10 → net $193.90

The gap narrows on higher tickets because the fixed fee matters less relative to the total.

Run your own numbers with our PayPal Fee Calculator and Stripe Fee Calculator — plug in your average order value and see the difference immediately.

When PayPal tends to cost more

PayPal often ends up more expensive when:

• Your average order value is low. The higher fixed fee ($0.49 vs $0.30 in the US) eats a larger share of small transactions.
• You sell internationally. PayPal's cross-border markup can push effective rates above 4% once conversion fees are included.
• Buyers pay with international cards through PayPal checkout. You inherit PayPal's international pricing even if you are based in the US.

PayPal also charges for currency conversion when you receive funds in a currency different from your account's primary currency. If you sell to UK buyers but hold a USD balance, conversion costs add up quietly.

When Stripe tends to cost more

Stripe is not automatically cheaper in every scenario:

• Manual card entry (phone orders, invoicing with typed card numbers) triggers Stripe's higher keyed-in rate.
• International cards still carry a premium — 3.1% + $0.30 in the US versus 2.9% domestic — which adds up if most of your buyers use foreign-issued cards.
• Disputes and chargebacks incur a $15 dispute fee on Stripe (refunded if you win). PayPal has its own dispute costs and policies.

Stripe's strength is transparent, developer-friendly pricing with fewer surprises at checkout — but you still need to model international and keyed-in scenarios separately.

Country and payment type differences

Fees are not global. A UK seller sees different numbers than a US seller.

United Kingdom example

Stripe's domestic UK card rate is often around 1.5% + £0.20 for standard ecommerce — significantly lower than US rates. PayPal UK domestic rates are competitive but international and currency conversion still add cost.

European sellers

Both platforms adjust per country. Cross-border payments within the EU may qualify for lower rates than payments from outside Europe, depending on card origin and your account setup.

Australia, Canada, and other markets

Each has its own percentage and fixed fee. Always check your local pricing page — and use country-specific settings in a fee calculator rather than assuming US rates.

Payment type matters too:

• Domestic card or wallet — lowest tier
• International card — mid-tier markup
• Currency conversion — additional percentage on top
• In-person vs online — Square and other tools handle in-person; PayPal and Stripe both focus on online but offer different hardware and POS options

Pros and cons for ecommerce sellers

PayPal — advantages

• High buyer trust; many customers already have accounts
• Fast setup for very small businesses
• Buyer protection policies can increase conversion for cautious shoppers
• Works well on marketplaces (eBay, etc.) and simple "Pay with PayPal" buttons

PayPal — drawbacks

• Higher effective fees on small and international orders
• Currency conversion costs are easy to overlook
• Checkout can redirect buyers away from your site (unless using advanced integrations)
• Reporting and reconciliation can feel clunky at scale

Stripe — advantages

• Lower fixed fees in the US and competitive rates in many countries
• Seamless embedded checkout on your own domain
• Excellent for subscriptions, SaaS, and custom ecommerce stacks
• Clear API and webhook ecosystem for automation

Stripe — drawbacks

• Less instant recognition among casual shoppers than PayPal
• Requires more technical setup (or a platform that handles it)
• International and keyed-in rates need separate planning
• Chargeback fees apply per dispute

Which is cheaper for your business?

There is no single winner — it depends on your order profile.

Choose Stripe (or prioritize it) if you run a Shopify, WooCommerce, or custom store with mostly domestic card payments, your average order is above ~$30, and you want checkout on your own site.

Choose PayPal (or offer it alongside Stripe) if your audience expects PayPal, you sell internationally to buyers who prefer wallets, or you need a fast solution without developer resources.

Use both if conversion data supports it. Many stores offer Stripe for card checkout and PayPal as an alternative. The extra payment option can increase sales enough to offset PayPal's higher fees on those transactions — but measure it.

A simple decision framework:

1. Export your last 90 days of orders by size and buyer country.
2. Calculate effective fees for each order under both rate tables.
3. Add currency conversion if you receive payouts in a different currency than you sell in.
4. Compare totals — not just headline percentages.

Our calculators handle forward fees ("customer pays X, what do I keep?") and reverse mode ("I need to receive $100, what should I charge?"). Use reverse mode when pricing products — more on that in our guide on how to price products after payment fees.

The bottom line

PayPal and Stripe both work. The question is which one matches how your customers pay and where you sell.

For typical US ecommerce with moderate order values, Stripe often comes out slightly ahead on per-transaction cost. PayPal can still win on trust and conversion, especially internationally — but you pay for that in higher cross-border and conversion fees.

Do not guess. Model your actual order mix, country by country, before committing. Fees change with account history, volume, and provider policy updates — recheck quarterly.

Related reading: International payment fees explained · PayPal Fee Calculator · Stripe Fee Calculator