Stripe vs PayPal: The Fee Comparison Every Freelancer Needs

If you are a freelancer or small business owner accepting online payments, you are almost certainly using either Stripe or PayPal — or both. Both platforms are trusted, widely accepted, and easy to set up. But their fee structures are different, and over the course of a year those differences can amount to hundreds or even thousands of dollars.

This guide breaks down the exact fees for both platforms in 2025, explains when each one makes more sense, and shows you how to calculate exactly what you will receive after fees on any transaction.

Stripe Fees in 2025

Stripe charges a straightforward fee structure with no monthly fees for standard accounts. The rates in 2025 are as follows. For standard domestic card payments, Stripe charges 2.9% plus $0.30 per transaction. For international cards where the customer is outside your country, an additional 1.5% is added, bringing the total to 3.9% plus $0.30. For ACH direct debit payments from US bank accounts, Stripe charges 0.8% with a maximum cap of $5.00 per transaction, making it extremely cost-effective for large payments.

On a $1,000 invoice paid with a domestic card, Stripe deducts $29.30, leaving you with $970.70. On the same invoice paid with an international card, Stripe deducts $39.30, leaving you with $960.70. For a $5,000 ACH payment, Stripe caps the fee at $5.00 regardless of the amount — making ACH ideal for large B2B transactions.

PayPal Fees in 2025

PayPal's fee structure is slightly higher than Stripe for most transaction types. For domestic Goods and Services payments, PayPal charges 3.49% plus $0.49 per transaction. For international payments, the rate rises to 4.99% plus $0.49. PayPal Friends and Family payments carry no fee, but they also carry no buyer or seller protection and should never be used for business transactions.

On a $1,000 domestic invoice via PayPal, you receive $964.62 after fees — $6.08 less than with Stripe. On an international payment of $1,000, PayPal leaves you with $949.61 compared to Stripe's $960.70. Over 100 such transactions per year, that difference adds up to over $1,000 in additional fees with PayPal versus Stripe.

Side by Side Comparison

For a $1,000 transaction, here is exactly how the two platforms compare. With Stripe domestic you pay $29.30 in fees and receive $970.70. With PayPal domestic you pay $35.38 in fees and receive $964.62. With Stripe international you pay $39.30 and receive $960.70. With PayPal international you pay $50.39 and receive $949.61. Stripe is cheaper in every standard scenario.

When PayPal Makes More Sense

Despite higher fees, PayPal has specific advantages. Many clients — particularly older buyers and those outside the tech industry — trust PayPal more than Stripe. PayPal's buyer protection is well established and widely understood. For freelancers whose clients insist on PayPal, the higher fee may simply be the cost of doing business. PayPal also has a more established presence in certain countries where Stripe is not yet available.

How to Calculate Your Exact Fees

The most common mistake freelancers make is absorbing the payment processing fee rather than building it into their invoice. If you want to receive exactly $1,000 from a Stripe domestic payment, you need to charge your client $1,030.17. For a PayPal domestic payment, you need to charge $1,036.67.

Our free Stripe fee calculator and free PayPal fee calculator both include a reverse calculation mode. Simply enter the amount you want to receive, and the tool tells you exactly what to charge your client. No manual formula required.

Frequently Asked Questions

Is Stripe always cheaper than PayPal?
For most standard card transactions, yes. Stripe's 2.9% + $0.30 domestic rate is lower than PayPal's 3.49% + $0.49. The difference is most significant on international payments.

Are Stripe fees tax deductible?
Yes. In the US, UK, and Australia, payment processing fees are deductible as a business expense. Keep records of all fees paid throughout the year.

Can I use both Stripe and PayPal?
Yes, many freelancers offer both options to clients. Use whichever the client prefers and factor the fee into your invoice using a fee calculator.

Does Stripe charge for refunds?
Stripe does not charge a fee on refunds, but the original processing fee is not returned. If you refund $1,000, you absorb the $29.30 processing fee.

Calculate Your Stripe Fees Now

Use our free Stripe fee calculator to instantly calculate what you will receive or what to charge. No signup required.