Stripe processing fees for transactions
We’re all familiar with Venmo and PayPal for splitting bills or sending money to friends and BOSS Revolution for sending money abroad. But what you might not realize is you’ve probably used Stripe as well. If you often make purchases online, you’ve likely made a payment with Stripe without even knowing it.
Stripe is the payment processor behind many of the online transactions we make every day. While it’s not as well-known to consumers, it is popular among businesses handling digital payments. If you’re a business owner accepting global payments, a freelancer with international clients, or an e-commerce shop owner, understanding the Stripe pricing model and processing fees can help you set up a cost-effective payment system.
In this article, we’ll explore what Stripe is, how it works, and its transaction fees. We also take a look at some alternatives that may be more suitable for your specific needs.
What is Stripe, and how does it work?
Stripe is a unified platform with payment solutions that users can stack according to their needs. As a payment gateway and processor, Stripe works behind the scenes in global e-commerce. It provides multiple cross-border payment options for more than 135 currencies across 195 countries.1, 2
Aside from enabling multiple payment options, it also offers solutions for fraud protection (Stripe Radar), insights and reporting (Stripe Sigma), revenue optimization, and business automation. This robust suite of features makes it popular for use in online payments, unified commerce, recurring payments, and marketplace payments.3
Stripe pricing models
Currently, Stripe offers two pricing models for its clients: Standard pricing and Custom pricing1, 4. Standard pricing gives small businesses, entrepreneurs, and freelancers access to the payments platform without having to pay for setup fees or monthly subscription fees. They are charged on a pay-as-you-go system, so they pay only for the exact services they use for every transaction.
How does Stripe work?5
Businesses can use Stripe as a payment gateway and processor by creating an account and integrating Stripe tools and APIs into their websites or apps. They can customize payment buttons and checkout pages to accept different payment methods and link to their business accounts. Most importantly, they can do all these without having to use separate services or multiple platforms.
When a customer makes a purchase, they enter their payment details into Stripe-powered checkout forms or pages. Stripe then serves as an intermediary between the financial institutions of the customer and the business. It verifies the transaction, facilitates fund transfers, and ensures everything is secure.
Who benefits from using Stripe?
Stripe caters mostly to business clients such as e-commerce businesses, SaaS providers, freelancers, online marketplaces, and many others. If you’ve ever bought something from Amazon, DoorDash, Booking.com, or other online marketplaces, you’ve likely benefited from Stripe. So, while you may not interact with it directly, you benefit from its infrastructure every time you buy something from a business that uses Stripe to handle payments.
Stripe processing fees explained
Stripe follows a straightforward pricing model but has different fees depending on the type of transaction. Below is a breakdown of the usual charges:
Standard processing fees4
Stripe charges businesses a per-transaction fee for processing payments they receive from their customers. The total fee includes interchange fees that are set by partner banks and card networks. The fees vary depending on the type of transaction. Some of the fees businesses pay are:
- 2.9% + $0.30 per successful charge (for online domestic card transactions)
- 2.7% + $0.50 per successful charge (for in-person domestic card transactions)
- 3.4% + $0.30 per successful charge (for manually-entered card payments)
International card fees4
Payments made using international cards incur a surcharge of 1.5% of the transaction amount on top of the standard processing fees.
Currency conversion fees6
Stripe lets businesses accept payments in 135+ currencies but may apply a conversion fee when converting payments. This is typically 1% of the transaction amount.
Keep in mind that Stripe may charge other fees. The platform maintains transparency by making sure that users can see which fees they are being charged for each transaction.
Stripe fees breakdown by payment method
Stripe provides clients access to over 100 payment methods, including ACH debit, BNPL, and electronic wallets. Here are some of the payment methods supported by Stripe.7, 8
- Credit/Debit cards: American Express, Visa, Mastercard, Diners Club, JCB, etc.
- Wallets: PayPal, Google Pay, Apple Pay, Alipay, WeChat Pay, Amazon Pay, etc.
- Bank transfers: ACH, GBP, EUR bank transfers
- Bank debits: ACH debit, SEPA direct debit, Canadian PADs, etc.
- Bank redirects: iDEAL, FPX, P24, EPS, Bancontact, etc.
- Buy now, pay later: Afterpay, Klarna, Affirm, and Zip
- Real-time payments: PayNow and PromptPay
- Vouchers: Boleto Bancario, Konbini, and OXXO
Take note that some payment methods may not be available in certain countries. The processing fees and charges also vary depending on the payment method, but generally, they are a percentage of the transaction amount and/or a fixed amount. The following table compares Stripe's fees for the most commonly used payment methods4, 9:
| Payment method | Processing fee | Additional charges |
|---|---|---|
| Cards and wallets | 2.9% + $0.30 per successful charge for domestic cards |
|
| Bank debits and transfers (ACH, SEPA, USD, etc.) |
Starts at 0.5% + $0.30 per transaction |
|
| Bank redirects (iDEAL, Bancontact, EPS, etc.) | $0.80 for iDEAL Starts at 1.4% + $0.30 per transaction for other banks |
|
| Buy Now Pay Later (Afterpay, Klarna, Affirm) | Starts at 5.99% + $0.30 per transaction |
|
How much does Stripe charge for different transactions?
Aside from the payment methods, transaction types also affect Stripe fees. For instance, a one-time payment of $500 using a linked card is charged the standard fee of 2.9% + $0.30, which amounts to $14.80. The merchant then receives $485.20 when Stripe deducts this fee.
If the customer manually entered the card payment details, the fee would be $17.30. The higher fee is due to the higher fraud rates associated with manually entered payments. Conversely, the same purchase amount paid in person through a terminal is considered less risky and is charged a lower processing fee of $13.55 (2.7% + $0.05).10
Additional Stripe costs to consider
Beyond transaction fees, using Stripe as a payment processor may entail other costs. Some of these are:
-Refund fees (refunds don’t reverse processing fees).
-Instant payouts (1% additional fee for faster payouts).
-Platform and API usage fees (if applicable).
-API and Platform Fees - custom pricing for specific services
Chargeback, dispute, and refund fees9
Stripe may charge fees for failed or disputed payments and refunds. The fees vary depending on the payment method. For instance, a business may be charged $15.00 for a disputed payment with ACH direct debit, while domestic bank transfer refunds may incur only $0.50 per refund.
Instant payouts11
When a business withdraws funds within minutes after a payment is processed, Stripe charges a fee of 1% to 1.5% of the payout amount.
API and platform fees4
Businesses can build their custom payment stack using Stripe tools that are suitable for their needs. However, these incur additional fees.
- Billing. For businesses with a subscription-based or usage-based model, Stripe enables automated billing on a pay-as-you-go or monthly payment basis. Fees start at 0.7% of the billing volume or $620 per month for a one-year contract.
- Invoicing. For 0.4% per invoice, Stripe enables users to create, send, and monitor custom invoices.
- Stripe Connect. Users can monetize their transactions by embedding Stripe on their platforms or marketplaces. Fees for this service start at 0.25%.
How to reduce Stripe fees & save money
To minimize Stripe costs, consider these strategies:
- Encourage customers to use debit cards as these are not subject to additional processing fees like credit cards.
- Use ACH payments or direct bank transfers, which generally have lower transaction fees.
- Offer subscription payments to reduce the frequency of payments and, thus, reduce total transaction fees.
- Streamline international payments to minimize currency conversions.
- Leverage volume discounts as Stripe offers custom rates for high-volume businesses.
Stripe vs. other payment processors: Fee comparison
Is Stripe the best payment processor for you? That depends on whether you are running an online store, providing professional services, sending money internationally, or handling unique payment needs. Below is a comparison table of popular service providers to help you find the right solution for your transactions.
| Transaction fees | Refund policies | Best for | |
|---|---|---|---|
| Stripe | Starts at 2.9% + $0.30 per successful charge Incurs additional charges for currency conversion, international payments, etc. |
|
SaaS companies, e-commerce businesses, and online marketplaces looking for flexible payment processing. |
| PayPal13, 14 | From 3.4% to 5.4% + fixed fee |
|
Online businesses, international sellers, and freelancers handling global payments. |
| Square15, 16 | Starts at 2.5% of the transaction amount plus a fixed fee of $0.07 to $0.30 per transaction |
|
Retail stores, service-based businesses, and other businesses selling both online and in-person |
| BOSS Revolution | As low as $1.99 per transfer Fees depend on the destination country, amount sent, and payment method |
|
|
Stripe and Square both support global payments that simplify transactions for merchants; however, they do not provide support for international money transfers. Although PayPal can be used for payments and transfers, the transactions for money transfers often come with high fees. For sending money abroad, one of the best alternatives is still BOSS Revolution.
Does Stripe charge a monthly fee?
No, Stripe does not charge users a fixed monthly fee as it operates on a pay-as-you-go pricing model. Users are charged processing fees only for Stripe transactions. However, there are optional add-on features that may incur monthly costs, such as Billing (starts at $620 per month), Tax (starts at $90 per month), and Sigma (starts at $10 per month).4
How much does Stripe take per transaction?
Stripe charges 2.9% + $0.30 for domestic cards. When international cards are used, Stripe charges an additional 1.5% of the transaction amount. Other charges that may be added to the total processing fee are 0.5% for manually entered cards and 1% for currency conversion.4
How much is the Stripe fee for $100?
The Stripe fee of $100 would depend on the payment method and transaction type. For instance, a domestic transaction through cards or wallets would incur a $3.20 fee, but an international transaction would cost up to $5.70 if currencies have to be converted. If the payment is processed through bank debit, the fee would range anywhere from $0.80 to $4.20 or more.4
What happens if a payment is refunded?
When a payment is refunded, Stripe fees, including those for payment processing, Connect, and currency conversion, are not returned. This is because these fees cover charges by banks and payment networks, fraud protection services, reports, tools, and other costs. In some cases, Stripe users may even incur additional fees for the refund process.17
Stripe for Businesses
Indeed, Stripe provides a flexible payment solution for businesses of all sizes. If you’re a business owner or a freelancer working with international clients, Stripe can simplify the management of global payments you receive. However, it is important to understand the various fees it charges to better understand if it is the right fit for your business needs.
While Stripe offers a comprehensive range of payment solutions, alternatives like BOSS Revolution may be more cost-effective for businesses and individuals looking for lower international transfer fees. Always review the latest pricing and choose a payment processor that aligns with your specific requirements.
Sources: all third party information obtained from applicable website as of February 14 2025
- https://stripe.com/payments
- https://stripe.com/use-cases/global-businesses
- https://stripe.com/payments/features
- https://stripe.com/pricing
- https://stripe.com/resources/more/payment-processor-vs-payment-gateway
- https://docs.stripe.com/currencies/conversions
- https://stripe.com/payments/payment-methods
- https://stripe.com/use-cases/global-businesses
- https://stripe.com/pricing/local-payment-methods
- https://support.stripe.com/questions/manually-entered-card-payments
- https://support.stripe.com/topics/instant-payouts
- https://docs.stripe.com/refunds
- https://www.paypal.com/ph/webapps/mpp/merchant-fees
- https://www.paypal.com/us/cshelp/article/how-do-i-issue-a-refund-help101
- https://squareup.com/help/ca/en/article/5068-what-are-square-s-fees
- https://squareup.com/help/ca/en/article/5615-refunds-faqs
- https://support.stripe.com/questions/understanding-fees-for-refunded-payments
This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.
