Payment processing economics
Stripe vs PayPal Fees: 2026 Cost Comparison
The cheaper processor depends on order value, fixed fees, payment method, seller country, international cards, currency conversion, disputes, and negotiated rates. Compare effective cost at the order values and monthly volume the business actually expects.
Fixed fees make small orders more expensive than the headline percentage suggests.
Compare monthly cost at realistic volume rather than one transaction in isolation.
Treat conversion, payout timing, disputes, and integrations as business factors alongside fees.
Compare effective processing rates
For each provider, add the percentage fee and fixed fee, then divide the total fee by order value. The effective rate falls as order value rises because the fixed amount is spread over a larger payment.
- Fee per transaction = order value × percentage rate + fixed fee.
- Effective rate = fee per transaction ÷ order value.
- Monthly processing cost = fee per transaction × monthly transactions.
Compare Stripe vs PayPal fees at common US order values
Using the editable US planning defaults verified on July 17, 2026—3.49% + $0.49 for PayPal payments and 2.9% + $0.30 for Stripe domestic online cards—shows how the fixed fee changes the effective rate. These are not universal quotes: replace them with the payment type and account rates that apply to the business.
- $10 order: PayPal about $0.84 (8.39% effective); Stripe $0.59 (5.90%).
- $25 order: PayPal about $1.36 (5.45% effective); Stripe about $1.03 (4.10%).
- $50 order: PayPal about $2.24 (4.47% effective); Stripe $1.75 (3.50%).
- $100 order: PayPal $3.98 (3.98% effective); Stripe $3.20 (3.20%).
Verify account-specific PayPal and Stripe pricing
Treat the calculator defaults as editable US planning examples. Confirm the seller country, payment product, payment method, and contracted rate in each PayPal and Stripe account before comparing providers.
Model international cards, currency conversion, disputes, refunds, subscriptions, and in-person payments separately when those adjustments apply to the business.
Do not choose on fees alone
A lower base fee can be outweighed by weaker checkout conversion, unavailable local payment methods, longer payout timing, higher currency conversion, or operational friction. Compare the fee difference with the value of the features the business actually uses.
Published US online rates are planning examples. Confirm the active rate in each provider dashboard before making a decision.
Worked example: $85 orders at 500 transactions per month
- PayPal planning rate of 3.49% + $0.49
- Stripe planning rate of 2.9% + $0.30
- No international, currency-conversion, dispute, refund, or negotiated-rate adjustments
The model estimates $3.46 per PayPal transaction and $2.77 per Stripe transaction, a monthly difference of about $345.75 at this volume.
Recalculate with your own numbersOfficial sources
Rates and eligibility vary by market, account, category, payment method, and program. Use the calculator for planning and the provider dashboard or statement for final reconciliation.