Stripe Processing Fees Explained: What Business Owners Really Pay

Businesses turn to Stripe because it offers a fast, convenient way to process payments. However, it is often not clear to businesses exactly how much Stripe is charging for each transaction. Stripe processing fees include flat fees, dispute charges, international fees, and other costs. Additionally, different payment types and channels are charged at different rates. 

As a result, many merchants receive an unpleasant surprise when their merchant processing statement appears each month. To clarify the total cost and help you avoid hidden charges, we’ve compiled some of the major Stripe transaction fees and how much you are really spending on payment processing fees.

TL;DR

• Stripe is a popular global payment processor. It is known for its pay-as-you-go payment structure.
• Although the standard rate for most transaction types is 2.9% + 30¢, the fee structure is variable. This means you can be charged more in specific situations.
• The fees you are charged can change based on the channel, risks involved, and payment type. 
• Your company’s payment volume will play a role in whether you can negotiate better rates.
• An international transaction leads to an added 1.5% fee. If a currency conversion is also involved, it increases the fees by 1% of the transaction total.
• Because manually entered card numbers involve an added risk for the payment processor, they result in an added 0.5% fee.
• In-person payments are generally cheaper than online payments.
• Buy now, pay later options, cryptocurrencies, and cash-based vouchers involve higher fees.
• Because of the added fees, many merchants are charged far more than the basic rate.

By working with PayCompass, companies can get flexible contracts, excellent customer support, and tailored solutions.

What Is Stripe?

So, how do businesses use Stripe? And how much does Stripe take per transaction?

With all of the new fintech apps and online banking services, it’s hard to keep different financial services straight. Stripe is considered a global payment processing platform. This means that you can use it to accept payments online. It also offers an offline option known as Stripe Terminal.

Stripe has managed to make a name for itself by offering pay-as-you-go services. Instead of paying a lump sum each month or a minimum payment, businesses are charged Stripe fees per transaction. 

Unlike other payment processors, Stripe doesn’t require any long-term commitment. It also doesn’t charge setup fees.

The organization stands out for its recent push to cut down on fraud. It has dropped dispute rates by 40% and card-testing attacks by around 80%.

While there are many benefits associated with using Stripe, there are also some drawbacks. Its customization options can be problematic if you aren’t particularly tech-savvy. In addition, customer support can be fairly slow and ineffective.

More importantly, Stripe’s payment structure can quickly get expensive. While Stripe doesn’t charge a monthly fee or setup costs, the hidden fees can quickly add up. International fees, currency conversion costs, chargebacks, and other expenses can eat into your company’s bottom line.

For all of these reasons, it’s essential for businesses to understand what they are getting into when they switch to Stripe. Once you understand Stripe credit card processing fees, you can figure out ways to avoid add-on charges. You can also determine if working with Stripe is the right long-term choice for your business.

How Stripe Processing Fees Work

At its core, Stripe’s pricing model uses a variable pricing structure. This means that different variables impact the amount paid. If the payment is domestic, online, or in a different currency, it will impact the price. Similarly, the payment type will change how much you are charged.

In simple terms, how much does Stripe charge? The answer really depends. At a basic level, Stripe charges a percentage of the transaction and a flat fee.

For instance, a Google Pay payment will cost your company a 30¢ flat fee and 2.9% of the transaction. Swiping a card offline at your store will set you back 5¢ and 2.7% of the transaction’s total.

It is also important to note that Stripe transaction fees apply to the entire transaction. Even though your company isn’t allowed to keep taxes or tips, you’ll still have to pay a fee for collecting them. If you’re charged an international transaction or currency conversion fee as well, this can lead to a steep bill.

You can try to minimize fees by encouraging customers to use payment options that cost less. For instance, ACH payments are known for having the lowest processing fees. Meanwhile, both bank-based payment methods and mobile wallets have low chargeback rates and low fees.

What Kind of Fees Does Stripe Charge?

When your merchant account statement arrives, there will often be a breakdown of different fees that were charged to your account. To help you understand how much you’re paying, we’ve broken down the different kinds of Stripe fees per transaction.

Fee Type	What It Is	Example
Standard Online Transaction Fees	A transaction fee is charged based on the payment type. It is normally a percentage of the transaction as well as an added flat rate.	With domestic card payments, Stripe typically charges 2.9% + 30¢ for domestic cards.
In-Person Transaction Fees	These fees are from in-person transactions that are made with Stripe Terminal.	In-person transactions are less expensive than online transactions, with Stripe Terminal charging just 2.7% + 5¢.
International Transaction Fees	If the transaction happens with a non-domestic merchant or involves a currency conversion, an international transaction fee is charged.	Standard card payments are charged an added 1.5% fee for international transactions.
Currency Conversion Fees	This fee is charged if Stripe has to convert payments between different currencies.	With a standard card payment, the currency conversion fee is 1%.
Fees for Manually Entered Cards	If the clerk types out the card information instead of swiping, tapping, or inserting it, this type of fee must be charged.	Manually entered cards are charged an added 0.5% fee.
Disputed Payment Fees or Chargebacks	This fee is charged if the customer disputes the transaction.	Disputed payment fees can vary based on the payment type. For instance, disputed charges with Cash App Pay payments result in an added $15 charge.
Tap-to-Pay Authorization Fees	With tap-to-pay, Stripe often charges per authorization.	Stripe’s Terminal plan charges 10¢ per tap-to-pay authorization.
Payout Fees	This fee is charged when you get paid the money your company has earned.	Domestic payout fees are $1.50 for each local bank payout.
ACH Direct Payment Fees	An ACH fee is charged when a customer transfers money directly from their bank.	This fee is normally 0.8%, up to a cap of $5. There is also a $1.50 fee for instant bank account validation.

Fees for Different Types of Transactions

So, how much does Stripe take per transaction? Unfortunately, the answer to this question can vary significantly based on the payment method involved. The following are some of the current Stripe processing fees charged for different types of transactions.

Cards

Cards are charged differently based on whether they are processed online or offline. For online shoppers, the standard fee is 2.9% + 30¢. Offline Stripe transaction charges are 2.7% + 5¢ for each transaction.

Wallets

Wallets are convenient because they autofill information for the customer. For all of the following wallets, Stripe transaction fees are 2.9% + 30¢. However, added costs for international accounts, currency conversion, and disputed payments can vary.

• Alipay
• Apple Pay
• Amazon Pay
• Cash App Pay
• Click To Pay
• Google Pay
• Link
• WeChat Pay

Bank-Based Payment Methods

How much does Stripe charge for bank-based payment methods? In most cases, these payments are less expensive for your business than other options. At the low end, ACH payments are just 0.8% per transaction. If you want the payment to be processed in two days, the fee jumps to 1.2%. Other types of transfers, real-time payments, and bank debits are charged based on the type of bank transfer network involved.

• Bancontact: 1.4% + 30¢
• EPS: 1.6% + 30¢
• iDeal: 80¢
• Preauthorized Debits in Canada: 1% + 30¢
• Przelewy24: 2.2% + 30¢
• SEPA Direct Debit: 0.8% + 30¢
• USD Bank Transfer: 0.5%
• EUR Bank Transfer: 0.5%
• Pix: 2%
• MB Way: 1.5% + 30¢

Buy Now, Pay Later (BNPL)

BNPL providers help customers afford purchases in the present by giving them money up front. Then, the customer repays this amount over time. For businesses, accepting BNPL options can help you bring in sales you wouldn’t otherwise be able to get. The amount you pay in Stripe fees per transaction depends on which BNPL provider is involved.

• Affirm: 6% + 30¢
• Cash App Afterpay: 6% + 30¢
• Klarna: 5.99% + 30¢
• Zip: 4.5% + 30¢

Cash-Based Vouchers

With cash-based vouchers, customers can pay their bills or shop online by paying cash in person at the store. Stripe currently has just one option for cash-based vouchers, Multibanco. For each transaction, the Stripe processing fees are 2.95% + 30¢.

Cryptocurrencies

For cryptocurrency transactions, Stripe is currently limited to just Stablecoins. Each of these transactions is charged 1.5%.

Country-Wide Payment Access

If you are dealing with transactions in South Korea, you get to deal with a single fee structure. Stripe charges a set 3.1% + 30¢ for all forms of payment processed in South Korea.

The Main Factors Affecting Your Stripe Fees

As a business, there are a few key factors that will determine how much you pay for Stripe processing fees. On individual transactions, the rate can vary because of the channel or payment type. Additionally, Stripe transaction fees can vary based on your company’s volume and risk level.

Channel 

The payment channel plays a role in how much you pay in Stripe transaction charges. For example, all of the BNPL options tend to involve significant fees. Meanwhile, Stripe credit card processing fees are fairly low. Even the same credit card can lead to different charges based on whether the transaction is online or offline. Similarly, cryptocurrency, ACH, and mobile wallets will all involve different fees.

Card Type 

With Stripe, you will pay different amounts if you’re dealing with a domestic card or an international card. International cards may also involve currency conversions, making them a much more costly option. Additionally, your company will have to pay an additional 0.5% fee if the card number and information are entered manually.

Risk Level 

While Stripe doesn’t explicitly charge different amounts for the risk level involved, the additional risk is wrapped into the payment processor’s pricing. For instance, manually entered cards have a higher risk level, so these transactions have an added fee. On the opposite end, ACH transactions have an incredibly low risk level and are charged a much lower fee. 

Volume 

For most small- and medium-sized merchants, there aren’t a lot of negotiating options available. However, high-volume merchants may be able to negotiate customized rates and get a better deal. As you grow, it’s a good idea to track your transaction volume so that you have data to support future price negotiations.

Why Is Stripe Charging More Than I Expected? 

If your Stripe processing fees appear unusually high, there may be a few reasons why. Often, it is due to add-on fees that aren’t a part of the basic fee structure.

Tap-to-pay transactions, international credit cards, and manually entered card numbers are just a few common situations where you might pay more. For example, tap-to-pay transactions at the terminal cost 10¢ extra. Whether a transaction is online or offline, an international credit card will result in an added 1.5% charge. Meanwhile, entering the card information manually automatically leads to an added 0.5% fee.

Stripe has a dynamic pricing system, so the actual rate can vary. You always pay the basic fee structure, which is 2.9% + 30¢ for most types of domestic transactions. On top of this, Stripe applies extra charges to reflect the added risk involved in other kinds of transactions.

How PayCompass Can Help You Navigate Payment Processing Fees

Whether you want a Stripe alternative or simply need an objective cost analysis, PayCompass can help. Because of Stripe’s inflexible contracts and non-negotiable pricing, many businesses eventually look for a different payment processor. 

Instead of struggling with a one-size-fits-all payment approach, you deserve a fee structure that suits your company’s unique needs. At PayCompass, we can help you find tailored payment solutions. Each contract is customized to your company’s volume, risk level, and channel. 

By partnering with PayCompass, you can take advantage of a few key benefits. 

• Transparent Pricing: At PayCompass, we are committed to helping merchants scale their companies. As a part of that mission, our team provides upfront pricing and a clear fee structure.
• Contract Flexibility: When you sign with a new payment processor, you can’t afford to be locked into a multi-year contract. From flexible contract lengths to negotiable terms, our merchant account experts can work with you to find the best solution possible.
• Chargeback Prevention Tools: Chargebacks are an expensive cost for businesses. Besides the upfront cost involved with each dispute, chargebacks can eventually increase your risk profile and lead to higher payment processing fees. Through our chargeback prevention tools, you can get help with reducing your chargeback rate.
• Dedicated Customer Support: When you’re having a problem with your payout or your customer’s payment doesn’t go through, you can’t afford to wait for help. Our world-class agents are available 24/7 to assist with all of your unexpected emergencies.

Final Thoughts

As a business, it’s essential to understand Stripe processing fees. While the basic fee structure of 2.9% + 30¢ appears reasonable, additional charges can quickly add up.

Because these fees are paid on tips, taxes, and the entire transaction total, it can significantly eat into your company’s revenue stream. Eventually, you have to determine whether Stripe’s convenience, speed, and payment options are worth the transaction fees involved. 

By understanding the Stripe fees per transaction, you can decide if it makes sense to transition to a different payment processor. At the very least, you can encourage customers to use lower-cost options, such as ACH or bank-based payment methods.

If you are struggling with Stripe credit card processing fees, we can help. Reach out to our team of merchant account experts for a complimentary rate analysis.