Payment Processing Fee CalculatorSee What You Actually Receive
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How Payment Processing Fees Actually Work
Payment processors charge two components per transaction: a percentage of the amount plus a fixed fee. For example, Stripe takes 2.9% + $0.30 on a US domestic card payment — so on $100, you pay $3.20 and receive $96.80.
Because of the fixed component, the effective fee rate is always higher than the stated percentage — especially on small transactions. A $10 Stripe payment costs $0.59 in fees (5.9% effective), not 2.9%.
Stripe vs PayPal: Which Is Cheaper?
Stripe charges 2.9% + $0.30 per US transaction. PayPal's standard rate is 3.49% + $0.49. With current US rates, Stripe is cheaper at every amount. The gap grows with transaction size — $0.78 difference on a $100 payment.
| Amount | Stripe Fee | Stripe Net | PayPal Fee | PayPal Net | You Save |
|---|---|---|---|---|---|
| $10 | −$0.59 | $9.41 | −$0.84 | $9.16 | $0.25 |
| $25 | −$1.03 | $23.97 | −$1.36 | $23.64 | $0.33 |
| $50 | −$1.75 | $48.25 | −$2.24 | $47.76 | $0.49 |
| $100 | −$3.20 | $96.80 | −$3.98 | $96.02 | $0.78 |
| $250 | −$7.55 | $242.45 | −$9.22 | $240.78 | $1.67 |
| $500 | −$14.80 | $485.20 | −$17.94 | $482.06 | $3.14 |
| $1,000 | −$29.30 | $970.70 | −$35.39 | $964.61 | $6.09 |
“You Save” shows the difference when choosing Stripe over PayPal. Rates: Stripe 2.9% + $0.30, PayPal 3.49% + $0.49 (US domestic). Fees differ by region — use the calculator above and select your currency to see local rates.
PayPal's higher cost may be offset by its brand recognition and built-in checkout. Many businesses offer both and let customers choose. Rates vary by region — select your currency above to compare.
Break-Even Point: When One Becomes Cheaper
A break-even point exists when one processor has a lower percentage but higher fixed fee. In some regions (like the EU and UK), Stripe and PayPal have this structure, creating a crossover amount. In the US, Stripe is lower on both components, so no crossover exists.
At $50/transaction with US rates, choosing Stripe saves ~$0.40 per transaction — $400/month at 1,000 transactions. Use the calculator above with your typical amount to see exact figures.
Frequently Asked Questions
How much does Stripe charge per transaction?
Stripe charges 2.9% + $0.30 per successful card charge in the US. International cards add 1.5%, and currency conversion adds 1%. Rates differ by country — select your currency in the calculator to see local rates.
Is PayPal more expensive than Stripe?
In the US, yes — PayPal charges 3.49% + $0.49 versus Stripe's 2.9% + $0.30. Stripe is cheaper at every amount. In other regions the comparison differs, so check with your local currency selected.
What is an effective payment processing fee?
The total fee as a single percentage of the transaction. Because of the fixed component, a $10 Stripe payment costs 5.9% effective — not 2.9%. Larger transactions have lower effective rates.
Do fees change by country?
Yes. Stripe charges 1.4% + €0.25 in the EU, 2.9% + $0.30 in the US, and 1.75% + A$0.30 in Australia. PayPal varies similarly. Select your currency above to see your region's rates.
Does Stripe charge a monthly fee?
No. Stripe has no monthly fees, setup fees, or cancellation fees. You only pay per-transaction fees when you process a payment. This makes Stripe ideal for businesses of all sizes, including those with low or irregular transaction volume.
How can I reduce my payment processing fees?
You can reduce fees by: 1) Encouraging larger transactions (lower effective rate), 2) Negotiating volume discounts with Stripe or PayPal if you process over $80,000/month, 3) Using ACH or bank transfers for lower rates, 4) Passing fees to customers where allowed, 5) Reducing chargebacks and disputes.
Are Stripe and PayPal fees tax-deductible?
Yes. Payment processing fees are a legitimate business expense and are tax-deductible in most jurisdictions. Keep records of all transaction fees for your tax filings. Consult your accountant for specifics in your country.
What is the cheapest payment processor for small businesses?
For most US small businesses, Stripe is cheaper than PayPal at every transaction amount due to lower percentage (2.9% vs 3.49%) and fixed ($0.30 vs $0.49) fees. However, PayPal's buyer trust and one-click checkout may convert more sales, potentially offsetting the higher cost.