Understanding Stripe Payment Processing Fees
Stripe is a leading payment processor known for its developer-friendly API and transparent pricing. Understanding Stripe's fee structure helps you price products correctly, choose the right payment methods, and maximize your profit margins on every transaction.
Stripe Fee Structure (2025)
Transaction Types & Fees
Standard Online Payments
2.9% + $0.30 per transaction
Credit and debit card payments via Stripe Checkout or API
In-Person Payments (Terminal)
2.7% + $0.05 per transaction
Card-present payments using Stripe Terminal hardware
ACH Direct Debit
0.8% per transaction (capped at $5)
Bank transfers via ACH - lowest fees for high-value transactions
International Cards
+1% additional fee
Extra fee for cards issued outside the United States
Currency Conversion
+1% additional fee
Fee when accepting payments in currencies other than your account currency
Stripe vs PayPal Fee Comparison
Fee Comparison on $100 Transaction
Stripe typically saves $0.28 per transaction on online payments vs PayPal, which adds up to $280 in savings per 1,000 transactions.
When to Choose Stripe vs PayPal
Choose Stripe When:
- ✓Lower Fees: Save $0.28 per $100 transaction vs PayPal
- ✓Custom Integration: Need full API control and branded checkout experience
- ✓Subscription Billing: Superior recurring payment and subscription management
- ✓Global Business: Accept 135+ currencies with 1% conversion fee vs PayPal's 4%
Choose PayPal When:
- •Brand Trust: 400M+ users already have PayPal accounts
- •Quick Setup: No technical integration needed for basic payments
- •Marketplace Sales: Standard payment option on eBay and many marketplaces
- •Small Transactions: Lower in-person QR code fees (2.29% + $0.09)
Advanced Fee Optimization Strategies
Minimize Stripe Processing Fees
- ✓Use ACH for Large Transactions: On a $1,000 purchase, ACH costs $5 vs $29.30 for card payments - saving $24.30
- ✓Offer Discounts for Bank Transfers: Pass some savings to customers as incentive (e.g., 2% discount for ACH)
- ✓Avoid Currency Conversion: Accept payment in customer's local currency only when necessary
- ✓Upgrade to Terminal for In-Person: 2.7% + $0.05 vs 2.9% + $0.30 saves $0.45 per $100 transaction
- ✓Negotiate Volume Pricing: Processing $100K+ monthly? Contact Stripe for custom pricing
International Transaction Cost Analysis
Understanding international fees helps you price globally competitive while protecting margins:
- •Domestic Card: $100 sale costs $3.20 (2.9% + $0.30) = $96.80 received
- •International Card: $100 sale costs $4.20 (3.9% + $0.30) = $95.80 received
- •International + Currency Conversion: $100 sale costs $5.20 (4.9% + $0.30) = $94.80 received
- •Stripe vs PayPal International: Stripe 4.9% total vs PayPal 8.48% - Stripe saves $3.58 per $100
Protecting Your Business from Payment Processor Fees
- •Build Fees Into Pricing: Use this calculator to determine the amount to charge that covers all Stripe fees
- •Track Effective Fee Rate: Monitor your actual fee percentage monthly to catch rate changes or errors
- •Multi-Processor Strategy: Offer both Stripe and PayPal to maximize conversion and let customers choose
- •Dispute Protection: Stripe Radar uses machine learning to prevent fraud and chargebacks at no extra cost
- •Revenue Recognition: For accounting, log fee expenses separately from gross sales for accurate profit margins