Stripe and PayPal are the two most common payment processors for online businesses. Their standard rates look similar on the surface, but the details matter when you're optimizing margins.
Standard transaction fees (US, domestic cards)
| Processor | Rate | Fixed fee | Fee on $100 | Net on $100 |
|---|---|---|---|---|
| Stripe | 2.9% | $0.30 | $3.20 | $96.80 |
| PayPal (PayPal Checkout) | 3.49% | $0.49 | $3.98 | $96.02 |
| PayPal (advanced card) | 2.89% | $0.49 | $3.38 | $96.62 |
For a typical $100 transaction, Stripe is $0.78 cheaper than standard PayPal Checkout. Over $100k of revenue, that's a $780 difference.
For subscriptions / recurring billing
| Processor | Subscription rate | Notes |
|---|---|---|
| Stripe Billing | 2.9% + $0.30 | Included; advanced dunning available via Stripe Radar |
| PayPal Subscriptions | 3.49% + $0.49 | Higher per-transaction rate |
Stripe is consistently cheaper for recurring SaaS subscriptions.
International and cross-border fees
| Processor | International fee | Total effective rate |
|---|---|---|
| Stripe | +1.5% | 4.4% + $0.30 |
| PayPal | +1.5% | ~5.0% + $0.49 |
Developer experience
Stripe's API and documentation are widely regarded as superior for developers building custom checkout flows. PayPal's main advantage is brand recognition and the familiarity buyers have with "Pay with PayPal" — which can improve conversion rates in some B2C contexts.
Recommendation: For SaaS, developer tools, and B2B products, Stripe is the better choice on fees, API quality, and ecosystem (Stripe Atlas, Stripe Tax, Stripe Billing). For marketplaces or B2C products where PayPal's checkout familiarity helps conversion, the additional fee may be worthwhile.
Use the Stripe fee calculator above to model your exact net payout. For PayPal, enter 3.49% and $0.49 in the custom rate field.