PayPal vs Stripe: 0.09% apart, and why the choice still matters
The rates look almost identical: 2.99% + 49¢ against 2.9% + 30¢. On a $100 payment that is a 28-cent difference, which is noise. On a $5 payment it is a 20% difference, and on a subscription business it compounds every month.
The fixed fee is the whole story below $20
PayPal charges 2.99% + $0.49 on US commercial transactions. Stripe charges 2.9% + 30¢. The percentage components differ by 0.09 points; the fixed components differ by 19 cents, which is 63% more on PayPal.
On a $100 payment: PayPal takes $3.48, Stripe takes $3.20. On a $5 payment: PayPal takes $0.64 (12.8%), Stripe takes $0.45 (8.9%). The cheaper processor for your business depends entirely on your average transaction size, not on the headline rate.
| Platform | Fees | Fee rate | Net per sale | vs best |
|---|---|---|---|---|
| Stripe | $3.20 | 3.2% | $96.80 | — |
| PayPal | $3.48 | 3.5% | $96.52 | -$0.28 |
Worked at a $100.00 sale, $0.00 unit cost and $0.00 of shipping you pay, general merchandise. Change any of those and the order can flip — that is what the calculator above is for.
Break-even is about $211
Solve for the payment size where the two are equal: 0.0299x + 0.49 = 0.029x + 0.30, which gives x = $211. Above that, PayPal's higher percentage starts to outweigh its higher fixed fee and Stripe becomes cheaper again — but only barely. At $1,000 the gap is $1.10; at $5,000 it is $5.50.
In practice the two are within 1% of each other across almost the entire range a small seller operates in. That means the decision should be made on something else, and the fee table is the least useful input you have.
What actually decides it
Three things, none of them the rate. Disputes: PayPal's buyer protection is broader and its dispute resolution favours buyers more often; Stripe's chargeback process is more mechanical and gives you a better shot with evidence. Buyer habit: a meaningful share of consumers abandon checkout if PayPal is not offered, particularly above 40 — that is conversion, not cost. Recurring billing: Stripe's subscription tooling is better, and failed-payment recovery alone can be worth more than the fee gap.
The answer most sellers reach: offer both. Stripe as the default card processor, PayPal as an alternative button. The incremental PayPal fee on the customers who choose it is smaller than the revenue lost by not offering it.
PayPal vs Stripe — FAQ
Is Stripe cheaper than PayPal?
Slightly, for most payment sizes. Stripe charges 2.9% + 30¢ and PayPal 2.99% + 49¢ on US commercial transactions, so Stripe is cheaper at every amount below about $211 and above it the two are within a tenth of a percent. On a $100 payment Stripe saves 28 cents; on a $5 payment it saves 19 cents, which is 20% of the total fee.
What is the break-even between PayPal and Stripe?
About $211 per transaction. Below that Stripe's lower fixed fee dominates; above it PayPal's higher percentage dominates, but the gap is tiny — roughly $1.10 per $1,000. For practical purposes they cost the same on large payments and Stripe costs less on small ones.
How do I calculate the amount to charge to net $100?
Divide, do not add. The formula is (target + fixed fee) ÷ (1 − percentage rate). For Stripe at 2.9% + 30¢ that is ($100 + $0.30) ÷ 0.971 = $103.30. For PayPal at 2.99% + 49¢ it is ($100 + $0.49) ÷ 0.9701 = $104.03. Adding a flat 3% gives $103 and leaves you 30 cents short on every order.
Does PayPal charge extra for international payments?
Yes. Cross-border payments carry a surcharge of about 1.5% on top of the domestic rate for US sellers, and currency conversion adds a further spread of around 3–4% above the mid-market rate. Stripe charges 1.5% for international cards and 1% for currency conversion, so international economics differ from the domestic comparison shown here.
Why do customers prefer PayPal if it costs more?
Familiarity and buyer protection. PayPal lets a customer pay without entering card details, which lifts conversion at checkout, and its dispute process is weighted toward buyers. Many sellers keep PayPal as an option precisely because the conversion gain exceeds the small fee premium on the customers who choose it.
Sources & last checked. Rates reflect PayPal's 2026 US commercial transaction fee (2.99% + $0.49, plus ~1.5% cross-border and a currency conversion spread) and Stripe's 2026 US card rate (2.9% + 30¢, plus 1.5% international cards and 1% currency conversion). Rates vary by product, volume and country. Last reviewed October 2026.
PayPal Fee Calculator →
Cross-border surcharges and the gross-up done properly.
Stripe Fee Calculator →
International cards, conversion and the amount to charge.