Stripe vs PayPal Fees in 2026: Which Costs Less?
Stripe and PayPal are the two most popular payment processors for freelancers and online sellers. Both charge a percentage plus a flat fee per transaction — but the rates differ, and the right choice depends on how much you charge and who your clients are.
Current Fee Rates (US)
| Platform | Standard Rate | International Cards |
|---|---|---|
| Stripe | 2.9% + $0.30 | +1.5% |
| PayPal | 3.49% + $0.49 | +1.5% |
Rates are for standard card transactions. Always verify with official pricing pages.
Real-World Examples
The flat fee component makes a significant difference on small transactions. Here's how the fees compare across common invoice amounts:
| Invoice | Stripe Fee | PayPal Fee | Difference |
|---|---|---|---|
| $25 | $1.03 | $1.36 | PayPal costs $0.33 more |
| $100 | $3.20 | $3.98 | PayPal costs $0.78 more |
| $500 | $14.80 | $17.94 | PayPal costs $3.14 more |
| $1,000 | $29.30 | $35.39 | PayPal costs $6.09 more |
When PayPal Wins
Despite higher standard rates, PayPal has advantages in certain situations:
- Client preference: Some clients only have PayPal and won't enter card details elsewhere. Losing a client over this costs more than the fee difference.
- Friends & Family: For personal payments (not business), PayPal F&F has no fees — though using it for business payments violates PayPal's terms.
- Existing PayPal balance: Sending money between PayPal balances is free.
- Brand recognition: PayPal's checkout button often gets higher conversion rates from consumers who trust the PayPal brand.
When Stripe Wins
- Lower fees: Stripe is consistently cheaper per transaction across all common invoice amounts.
- ACH/bank transfers: Stripe ACH charges just 0.8% (capped at $5) — dramatically cheaper for large invoices.
- Developer-friendly: Better API, more payment method support, and cleaner invoicing tools.
- No holding funds: Stripe has a better reputation for not unexpectedly freezing accounts.
The Verdict
For most freelancers billing professional clients, Stripe is the better default — lower fees, better tooling, and more reliable payouts. For larger invoices ($1,000+), Stripe ACH is worth considering and can reduce fees by 80–90% compared to card processing.
Offer PayPal as an alternativefor clients who prefer it, but don't make it your primary processor if you can help it.
Try it yourself
Use our side-by-side calculator to compare Stripe and PayPal fees for any amount.
Stripe vs PayPal Calculator →