PayPal vs Stripe fees
Published August 3, 2026
Quick answer
For standard US card payments Stripe is slightly cheaper: 2.9% + $0.30 against PayPal's 2.99% + $0.49 for goods and services. On $100 that is $3.20 versus $3.48. The gap comes mostly from the fixed fee, so it widens on small payments and becomes negligible on large ones.
Where Stripe wins
Stripe's lower fixed fee ($0.30 against $0.49) means it wins on almost every standard card transaction, and the advantage is proportionally largest on small payments. It also has a genuinely cheap ACH option at 0.8% capped at $5, which for large invoices is transformative: a $10,000 payment costs $5 by ACH against roughly $290 by card.
Where PayPal wins
PayPal's micropayment pricing (4.99% + $0.09) beats both standard rates below about $12, which matters if you sell low-value digital goods. PayPal also carries buyer familiarity that can lift conversion, and for some sellers a slightly higher rate that converts better is the cheaper option in practice.
The comparison most people get wrong
Comparing headline percentages alone is misleading because the fixed fee dominates small transactions. At $3, Stripe's $0.30 fixed fee is 10% of the payment on its own. Always compare at your actual average order value rather than at $100, which flatters whichever provider has the lower percentage.
Frequently asked questions
Is Stripe cheaper than PayPal?
For standard US card payments, usually yes: 2.9% + $0.30 against 2.99% + $0.49. Most of the difference is the fixed fee, so the advantage is largest on small transactions.
Which is cheaper for large invoices?
Stripe, by a wide margin, if you can take ACH Direct Debit. At 0.8% capped at $5, any payment above roughly $625 costs a flat $5 rather than a percentage.
Do either refund fees when you refund a customer?
Stripe does not return the processing fee on a refund. PayPal returns the percentage portion but generally keeps the fixed fee. Either way a refunded sale leaves you out of pocket.