Choosing the right payment processor is critical for businesses aiming to minimize costs while maximizing efficiency. For startups, e-commerce giants, and brick-and-mortar stores alike, even a 0.5% difference in transaction fees can translate to thousands saved annually. Most of the time, confusion is Stripe vs PayPal vs Square fees.
Stripe, PayPal, and Square dominate the payment processing landscape, but their fee structures vary widely by use case, including sales volume, international transactions, and business models.
In this deep dive, we’ll compare Stripe vs PayPal vs Square fees, identify the cheapest payment processor, and break down Square vs Stripe pricing to help you make an informed decision—and potentially save big.
Before diving into fees, let’s outline each platform’s strengths:
Stripe: Developer-friendly, ideal for online businesses, subscriptions, and global sales.
PayPal: A household name with broad consumer trust, suited for small businesses and freelancers.
Square: Tailored for in-person and omnichannel retail, with POS hardware integrations.
While all three accept major credit cards and digital wallets, their pricing models cater to different audiences. Let’s dissect their fees.
To make a fair comparison, it’s helpful to start with a clear understanding of Stripe fees explained including how transaction, international, and payment method charges are applied.
Fee Structures: Breaking Down Costs
1. Stripe Fees
Stripe’s pricing is straightforward but rewards scalability:
Standard Transaction Fee: 2.9% + $0.30 per online transaction.
In-Person Payments: 2.7% + $0.30 (using Stripe Terminal).
International/Currency Conversion: +1% for cross-border transactions; +1% if currency conversion is needed.
Chargebacks: $15 per dispute (waived if resolved in your favor).
Volume Discounts: Custom pricing for businesses processing over $250,000/year.
Where Stripe Wins:
High-volume businesses save with negotiated rates.
Global sales benefit from multi-currency support and lower conversion fees than PayPal.
Subscription billing has no added fees, unlike PayPal’s $10/month for recurring payments.
2. PayPal Fees
PayPal’s fees are competitive but come with caveats:
Standard Transaction Fee: 3.49% + $0.49 per online transaction (U.S.).
In-Person Payments: 2.29% + $0.09 via QR codes.
International Sales: 4.5% + fixed fee for cross-border transactions.
Chargebacks: $20 per dispute (higher than Stripe and Square).
Recurring Payments: Requires PayPal Pro ($30/month) for advanced subscription tools.
Where PayPal Wins:
Micropayments: Custom rates for transactions under 10(e.g.,50.05).
Small sellers benefit from no monthly fees (unless using Pro).
3. Square Fees
Square shines for in-person sales but has nuances:
Online Transactions: 2.9% + $0.30 (same as Stripe).
In-Person Payments: 2.6% + $0.10 (cheapest for retail).
International Sales: 3.5% + fixed fee (no currency conversion unless using Square Balance).
Chargebacks: $15 per dispute.
Advanced Features: $60/month for Square for Retail (inventory management, loyalty programs).
Where Square Wins:
Retailers save on in-person rates.
Startups get free POS hardware with Square Reader.
Head-to-Head Comparison
| Scenario | Stripe | PayPal | Square |
|---|---|---|---|
| Online Transaction Fee | 2.9% + $0.30 | 3.49% + $0.49 | 2.9% + $0.30 |
| In-Person Fee | 2.7% + $0.30 | 2.29% + $0.09 | 2.6% + $0.10 |
| International Surcharge | +1% | +4.5% | +3.5% |
| Subscription Tools | Free | $30/month (Pro) | $60/month (Retail) |
| Best For | Global, high-volume | Small sellers | Retail, omnichannel |
Stripe’s pricing may look simple at first, but reviewing Stripe fee examples helps clarify how transaction and international charges are applied.
When Is Stripe the Cheapest Payment Processor?
High-Volume Sales: Businesses processing 250k+ annually may qualify for Stripe’s custom rates, which can drop below below 2.5% + $0.30 per charge
Global Expansion: Stripe supports 135+ currencies and charges just 1% for conversions, compared to PayPal’s 4.5% cross-border fee.
Subscription Models: No monthly fees for recurring billing, unlike PayPal Pro or Square’s Retail plan.
Example: A SaaS company with 500k/year in global sales would save 12,000 annually with Stripe vs PayPal (factoring in PayPal’s higher international fees and subscription costs).
Unlike flat-fee processors, Stripe uses a layered pricing model, and understanding how Stripe charges transaction fees is essential before comparing it with PayPal or Square.
Square vs Stripe Pricing: Which Is Better for Startups?
In-Person Sales: Square’s 2.6% + 0.10edgesoutStripe’s2.70.30.
Online Sales: Tie at 2.9% + $0.30, but Stripe’s APIs offer more customization.
Scalability: Stripe’s lack of monthly fees and volume discounts make it cheaper as you grow.
While Stripe often looks competitive on paper, businesses should also account for hidden Stripe fees that can affect the final cost per transaction.
PayPal’s Hidden Costs
While PayPal’s standard rates seem competitive, watch for:
Chargeback Penalties: 20vsStripe/Square’s15.
Currency Conversion: 4.5% vs Stripe’s 1%.
Withdrawal Fees: Free for U.S. accounts, but international banks may incur fees.
The Verdict: Which Payment Processor Saves You Money?
Stripe: Best for high-volume, global, or subscription-based businesses.
PayPal: Ideal for small sellers prioritizing buyer trust.
Square: Top choice for retailers with in-person sales.
Try Our Fee Calculator: [Your Affiliate Link] to compare your projected costs across platforms.
Final Recommendation on Stripe vs PayPal vs Square
Choosing between Stripe, PayPal, and Square ultimately depends on your business model, where you operate, and how you plan to accept payments. Each platform has strengths and trade-offs:
Stripe is ideal for developers and businesses that need flexible APIs, subscription billing, and global payment support. Its fee structure is transparent, but international and cross-border charges can add up if not calculated in advance.
PayPal is widely recognized and familiar to customers, which can help conversion rates. It is especially useful for small businesses and marketplaces. However, fees can vary by country and payment type, and you should always compare net revenue after charges.
Square excels for in-person and point-of-sale transactions. If your business has a physical presence alongside online sales, Square’s integrated hardware and simple fee structure can be appealing. For online-only stores, Stripe and PayPal may offer more advanced features.
No single provider is strictly “the cheapest” for all use cases. The key is to understand your sales channels, transaction volume, and geographic footprint, and then calculate your expected fees under each model. Tools like our payment fee calculators can help you compare projected costs before committing to a platform.
By combining fee calculations with your business priorities — such as international sales, subscription billing, or point-of-sale needs — you can make a data-backed choice that aligns with your goals without overpaying in fees.