Payment processing economics
PayPal vs Stripe Fees Guide
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.
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.