Guide to Stripe Fees & Rates For 2025

If you’re wondering about the fees associated with using Stripe, including the stripe fees, you’ve come to the right place. At Swipesum we’re a group of payments consultants, and a big chunk of our clients want custom pricing with Stripe or want to switch.

Stripe charges per transaction without setup or monthly fees, making it accessible for many businesses. These transaction costs are part of the merchant fees that businesses need to consider. It’s a common default option for accepting payments that will need to be replaced when your volume grows. In this guide, we’ll break down Stripe’s standard fees, product specific rates and fees, additional costs, and services to give you a clear picture of what to expect. To go ahead and solve the problem you’re looking for, book a consultation with a payment processing expert today.

Key Takeaways

• Stripe offers a transparent fee structure with no setup or monthly fees, charging around 2.90% + $0.30 for online transactions, which are competitive processing rates.
• International payments incur additional fees, including a 2% currency conversion fee and a 1.5% charge for international card transactions.
• Custom pricing options are available for high-volume businesses, allowing for potential savings through negotiated rates and interchange-plus models.
• Stripe is ideal for new to processing businesses, but their rates and fees often discourage existing businesses from using their products.
• Debit cards typically incur lower fees compared to credit cards, making them a cost-effective option for businesses aiming to reduce processing costs.

What is Stripe and How Does it Work?

Stripe is a comprehensive payment processing platform designed to help businesses accept online payments and manage their transactions efficiently. By connecting businesses with major payment networks like Visa and Mastercard and providing a merchant account, Stripe facilitates the seamless transfer of funds between a business and its customers’ bank accounts.

At its core, Stripe’s payment processing system is built to be secure, reliable, and scalable. It employs advanced encryption and tokenization techniques to safeguard sensitive payment information, significantly reducing the risk of fraud. This robust security framework ensures that both businesses and their customers can trust the integrity of their transactions.

Beyond basic payment processing, Stripe offers a suite of tools and services tailored to meet various business needs. These include managing credit card transactions, handling recurring billing for subscription services, and providing detailed payment analytics. Additionally, Stripe’s platform supports dispute management, helping businesses efficiently resolve any payment issues that may arise.

By offering a versatile and secure payment processing solution, Stripe enables businesses to focus on growth and customer satisfaction, knowing that their payment operations are in capable hands.

Overview of Stripe Fees

Stripe has made a name for itself as a leading payment processor, largely due to its transparent and straightforward fee structure. One of the main attractions for businesses is that Stripe charges no setup fees or monthly fees for its per-transaction pricing model. This makes it an attractive option for businesses of all sizes, particularly those just starting out or those with fluctuating transaction volumes.

At the core of Stripe’s pricing model is the transaction fee, which is typically calculated as a percentage of the transaction amount plus a flat fee. For most transactions, Stripe charges around 2.20% + $0.30 per successful transaction. These transaction fees are applied every time a transaction is processed, making it essential for businesses to understand and anticipate these costs.

In addition to the basic transaction fees, there are additional service fees and other fees for certain services, including processing fees. These can include costs for data pipelines, tax calculations, international card payments, and currency conversion. It’s important to consider these potential costs when evaluating Stripe’s overall fee structure.

For a personalized review of Stripe’s rates and how they might impact your business, consider leveraging the expertise of payment consultants at Swipesum. They can provide honest reviews and help ensure you have the best rates and integration for your needs.

Businesses should also be aware that they may incur a termination fee if they choose to terminate their contract with Stripe before the end of the specified term. This fee compensates the payment processor for the early cancellation of the service agreement.

Navigating Stripe with Swipesum's Expertise

Stripe is renowned for its transparent, flat-rate pricing, charging 2.9% plus $0.30 per online transaction, with additional fees for international and currency conversion transactions. While this straightforward structure appeals to many businesses, the complexities of payment processing can lead to unforeseen costs and challenges.

Swipesum, a leading payment consulting firm, specializes in demystifying these complexities. Their team of experts conducts comprehensive audits of your current payment systems, identifying areas where you might be overpaying and recommending tailored solutions to optimize your payment infrastructure. By leveraging Swipesum's services, businesses can gain access to reduced-cost wholesale transaction rates and benefit from AI-powered statement analysis, ensuring a more transparent and cost-effective payment process.

Beyond cost optimization, Swipesum offers support in technology integration, contract negotiation, and ongoing account monitoring. Their commitment to client success has earned them recognition across industries. Partnering with Swipesum empowers businesses to navigate the intricacies of payment processing with confidence, ensuring that solutions like Stripe are utilized to their fullest potential while aligning with the company's financial goals.

Breakdown of Stripe Transaction Fees

Stripe’s transaction fees vary depending on the type of payment being processed. Debit card transactions typically incur lower fees compared to credit card transactions. This section will provide a detailed breakdown of these fees, including gateway fees, highlighting the costs associated with online payments, in-person payments via Stripe Terminal, and ACH and wire transfers.

Grasping these distinctions helps businesses accurately anticipate payment processing expenses and make informed decisions about which payment methods to offer customers.

Online Payments

For online payments, Stripe’s standard transaction fee structure is 2.90% plus a fixed fee of $0.30 per transaction. This applies to most credit card transactions, including those made through digital wallets like Apple Pay and Google Pay. Debit cards are also accepted for online payments and typically incur lower fees compared to credit cards.

However, these transaction fees can vary by location and whether the payment is domestic or international. Businesses should be aware of these potential variations to accurately calculate their costs when accepting payments from international customers.

In-Person Payments via Stripe Terminal

In-person payments processed through Stripe Terminal have a slightly different fee structure. The standard fee for these transactions is 2.7% plus a fixed fee of $0.05 per transaction. Debit cards are accepted for in-person payments and typically incur lower fees compared to credit cards. This makes Stripe Terminal a competitive option for businesses that accept card payments in a physical setting.

The cost of the card readers required for Stripe Terminal transactions ranges from $59 to $249, and fees can vary based on whether the card is from the EEA or non-EEA regions.

ACH and Wire Transfers

For businesses that prefer ACH and wire transfers, Stripe offers a different fee structure, including specific ACH fees. Wire payments incur a fee of $8 per transaction. Meanwhile, ACH direct debit payments are charged at a rate of 0.8% with a maximum fee of $5, and ACH credit payments incur a flat fee of $1 per transaction.

These options can be particularly cost-effective for businesses dealing with large transaction amounts, as the lower processing fees are capped, limiting the maximum cost per transaction.

Stripe Payment Methods and Fees

Stripe offers a variety of payment methods, each with its own set of fees. Here’s a breakdown of the payment methods and fees associated with each:

• Credit Card: Stripe charges a standard fee of 2.9% + $0.30 per transaction for credit card payments. This fee applies to most major credit cards, including Visa, Mastercard, American Express, and Discover.
• Debit Card: Similar to credit cards, debit card transactions also incur a fee of 2.9% + $0.30 per transaction. Debit cards are often a cost-effective option for businesses looking to reduce processing fees.
• Digital Wallets: Payments made through digital wallets like Apple Pay and Google Pay are subject to the same fee structure as credit and debit cards, at 2.9% + $0.30 per transaction. These digital wallets offer a convenient and secure payment method for customers.
• ACH Direct Debit: For ACH direct debit transactions, Stripe charges 0.8% of the transaction amount, capped at $5. This makes ACH direct debit a cost-effective option for larger transactions.
• Wire Payments: Wire payments incur a flat fee of $8 per transaction. This fee structure is particularly beneficial for businesses dealing with high-value transactions.
• International Payments: When processing international payments, Stripe charges an additional 1% fee on top of the standard transaction fees. Additionally, currency conversion fees apply, starting at 2% of the transaction amount. These fees cover the costs associated with processing payments in different currencies and managing cross-border transactions.

Understanding the fees associated with each payment method can help businesses make informed decisions about which options to offer their customers, ultimately optimizing their payment processing strategy.

International Payment and Currency Conversion Fees

When dealing with international payments, businesses need to be aware of additional fees that can apply. For instance, Stripe adds currency conversion fees starting at 2% on top of the transaction costs. This fee can go up to 1% for transactions requiring currency conversion.

Additionally, international card transactions processed through Stripe incur an extra fee of 1.5%, regardless of whether the transaction is online or in-person. These fees help cover the costs associated with processing payments in different currencies and managing cross-border transactions.

Currency Conversion Fees

Currency conversion fees and foreign transaction fees are important considerations for businesses engaging in international transactions. Stripe applies a currency conversion fee of 1% on transactions that require converting one currency to another. This fee is added to the transaction amount and helps cover the costs associated with currency exchange.

For instance, if a business based in the United States processes a payment in euros, Stripe will convert the euros to US dollars and apply a 1% currency conversion fee to the transaction amount. However, if the business has a bank account denominated in euros, this fee is waived, as no currency conversion is necessary.

Understanding these fees is crucial for businesses that frequently deal with international customers. By being aware of the currency conversion fees, businesses can better anticipate their costs and manage their pricing strategies accordingly.

Refund Fees and Chargeback Fees

Handling refunds and chargebacks is a key aspect of payment processing. All disputed payments (also known as chargebacks) incur a $15.00 fee. Knowing the specific rates for your location is crucial.

Issuing a full refund before a dispute is raised can protect you from incurring refund fees. This proactive approach can save businesses significant costs associated with chargebacks.

Stripe Custom Pricing for High-Volume Businesses

For businesses with high transaction volumes, Stripe offers custom pricing options, including volume discounts. These options are tailored to meet the unique needs of large businesses and can include lower fees compared to the standard flat-rate pricing. This is not easy to access, but we have seen this increase over the past few years for large existing businesses or integrated SaaS platforms leveraging the Stripe Connect product.

Negotiating custom pricing typically involves direct communication with Stripe to discuss your business’s specific needs. This can result in a fee structure with revenue sharing on interchange, offering potential savings for high-volume transactions.

Stripe Pricing for Non-Profit Organizations

Stripe offers discounted pricing for non-profit organizations, making it an attractive option for charities and other non-profit entities looking to minimize their processing fees. To qualify for these discounts, organizations must meet certain criteria, including having non-profit status and processing at least 80% of their donation payments using Stripe.

Non-profit organizations that meet these criteria can benefit from lower processing fees, which include:

• Credit Card: Non-profits are charged a reduced fee of 2.2% + $0.30 per transaction for credit card payments. This lower rate helps non-profits maximize the funds they receive from donations.
• Debit Card: Similar to credit cards, debit card transactions for non-profits also incur a reduced fee of 2.2% + $0.30 per transaction. This makes debit cards a cost-effective option for non-profit organizations.
• Digital Wallets: Payments made through digital wallets like Apple Pay and Google Pay are subject to the same reduced fee structure as credit and debit cards, at 2.2% + $0.30 per transaction. Digital wallets provide a convenient and secure payment method for donors.
• ACH Direct Debit: For ACH direct debit transactions, non-profits are charged 0.5% of the transaction amount, capped at $5. This lower fee makes ACH direct debit an economical choice for larger donations.
• Wire Payments: Wire payments for non-profits incur a reduced flat fee of $5 per transaction. This fee structure is particularly beneficial for non-profits receiving high-value donations.

By offering these discounted rates, Stripe helps non-profit organizations reduce their processing costs, allowing them to allocate more funds towards their mission and programs. Understanding these lower processing fees can help non-profits optimize their payment processing strategy and maximize their resources.

Additional Stripe Services and Their Costs

Beyond standard payment processing, Stripe offers a variety of additional services with associated monthly fees. These include virtual and physical card issuance, Stripe Terminal for in-person payments, and LLC formation solutions.

Stripe also offers Stripe Sigma, which provides detailed analytics and insights. The infrastructure fee for Stripe Sigma ranges from $10 to $100, depending on the business’s needs, with custom pricing available for businesses with over 50,000 charges per month.

Stripe Billing

Stripe Billing is a versatile tool designed to help businesses manage invoices and subscription fees. It offers flexible pricing models, including subscription and usage-based billing, making it easier for businesses to handle recurring payments. This service is especially beneficial for businesses with complex billing needs, providing a streamlined solution for managing customer payments and subscriptions.

Stripe Connect

Stripe Connect is designed to facilitate marketplace transactions, including platform fees, offering three key pricing models tailored to different needs. This service helps businesses manage payments efficiently, ensuring a smooth transaction process for both buyers and sellers.

With Stripe Connect, businesses can leverage Stripe’s robust platform to handle complex payment flows and manage payouts to multiple parties.

Stripe Radar

Stripe Radar is a powerful fraud protection service that includes fraud detection fees and uses machine learning to detect and prevent fraudulent transactions. Its adaptive system continuously learns from new fraud patterns, enhancing its protective measures over time.

Using Stripe Radar helps businesses reduce potential losses from fraud, providing a more secure payment experience for customers.

Setup Fees and Other Costs

One of Stripe’s most appealing features is its lack of setup fees and monthly fees for standard payment processing services. This makes it an attractive option for businesses of all sizes, particularly those just starting out or with variable transaction volumes. However, there are other costs that businesses should be aware of:

• Transaction Fees: Stripe charges 2.9% + $0.30 per transaction for online payments. This fee structure is straightforward and easy to understand, making it simple for businesses to calculate their costs.
• ACH Fees: For ACH direct debit transactions, Stripe charges 0.8% of the transaction amount, capped at $5. ACH credit payments incur a flat fee of $1 per transaction.
• Wire Fees: Wire payments are subject to a fee of $8 per transaction, which can be a cost-effective option for large payments.
• Refund Fees: Issuing a refund incurs a fee of $0.30 per refund. This fee is applied to cover the costs associated with processing the refund.
• Dispute Fees: In the event of a payment dispute, Stripe charges a fee of $15 per dispute. This fee helps cover the costs of managing and resolving disputes.
• Currency Conversion Fees: As mentioned earlier, Stripe charges a 1% fee on international transactions that require currency conversion.

For businesses processing over $100,000 per month, Stripe offers custom pricing options. These can include lower processing fees, but may come with conditions such as minimum commitments. Custom pricing can be particularly beneficial for high-volume businesses, providing potential savings and more tailored fee structures.

Overall, while Stripe’s pricing is competitive with other payment processors, it’s important for businesses to carefully review all associated costs. By understanding the full scope of Stripe’s fees, businesses can make informed decisions and optimize their payment processing strategies.

Tips for Negotiating Lower Stripe Fees

Negotiating lower Stripe fees and securing negotiated rates requires a strategic approach, and for large businesses we have seen their North American Sales lead on the email chains. Start by understanding the detailed fee structures and identifying areas where you might negotiate better rates. Proactively engaging with Stripe’s support or your dedicated account representative can open opportunities for customized pricing.

Emphasizing increased transaction volumes during negotiations can strengthen your position for lower fees. Documenting your negotiation attempts and responses can help you achieve more favorable terms.

Comparing Stripe to Other Payment Processors

When comparing Stripe to other payment processors like PayPal, Square, Braintree, and Adyen, Stripe’s fees remain competitive while offering a robust suite of features tailored for various business needs at competitive rates.

• PayPal: Charges approximately 2.59% plus $0.49 for transactions within the US, making it similar to Stripe’s standard rate of 2.9% plus $0.30. However, PayPal’s ecosystem includes features like Pay Later options and extensive buyer protection, which may appeal to certain businesses despite slightly higher fees for international transactions.
• Square: Offers online transaction fees at 2.6% plus $0.10, slightly lower on a flat-rate basis for lower-value transactions. Square’s strength lies in its integrated ecosystem, particularly for small retailers and businesses that combine in-person and online sales. However, Square may lack the scalability and customization options Stripe provides for larger enterprises.
• Braintree: As a PayPal company, Braintree’s fees are similar to Stripe’s, at 2.9% plus $0.30 per transaction. Braintree also supports a range of payment methods, including PayPal and Venmo, but its API and developer tools, while strong, are often seen as less intuitive than Stripe’s.
• Adyen: Known for its transparent interchange-plus pricing model, Adyen typically charges around 3% plus $0.12 per transaction for card-not-present payments. Adyen’s focus on enterprise-level businesses and its ability to offer direct connections to global card networks make it a strong competitor for international merchants, but its pricing can be less predictable compared to Stripe’s flat-rate model.

Custom Pricing and Interchange-Plus Models

Custom pricing is particularly beneficial for large businesses with high transaction volumes. These businesses can negotiate a pricing model with revenue sharing on interchange, leading to potential savings.

Interchange-plus pricing offers transparency and can be advantageous for merchants, as it separates the interchange fees from the payment processor’s markup. This model allows businesses to better understand and manage their payment processing costs.

Stripe’s Anticipated IPO and Its Implications for 2025

Stripe, one of the most influential players in the financial technology sector, is gearing up for a highly anticipated Initial Public Offering (IPO) in 2025. With its current valuation hovering around $70 billion, this IPO is expected to be one of the largest and most significant in recent years. Stripe's journey toward going public reflects its consistent growth, innovative approach to online payment processing, and strategic efforts to solidify its market position in an increasingly competitive landscape.

Recent financial developments underscore Stripe’s readiness for the public stage. In 2023, the company raised $6.5 billion, primarily to fund stock buybacks and manage tax obligations related to stock awards. Additionally, a November 2024 share buyback at a $70 billion valuation signals a commitment to providing liquidity to employees and early investors ahead of its public debut. Industry analysts predict that the IPO will enable Stripe to leverage public capital for further expansion and technological innovation, cementing its role as a global leader in the payments ecosystem.

For the payments industry, Stripe's IPO could set new benchmarks. As the second-largest online payment processor globally, Stripe holds a 17% market share, trailing only PayPal. Its focus on developer-friendly APIs, global reach, and cutting-edge tools like Stripe Radar for fraud prevention has made it a go-to choice for businesses of all sizes. The IPO is poised to attract substantial investor interest, spotlighting the fintech sector's growth potential while presenting opportunities for businesses to partner with Stripe as it continues to scale and innovate.

Summary

Understanding Stripe’s fee structure is essential for businesses looking to optimize their payment processing in 2025. From standard transaction fees to additional costs for international payments and custom pricing options for high-volume businesses, Stripe offers a versatile and competitive platform.

By leveraging this comprehensive guide, businesses can make informed decisions, negotiate better rates, and ultimately improve their payment processing efficiency. Stay proactive and informed to make the most out of Stripe’s offerings.

Frequently Asked Questions

What fees can merchants expect to pay for Stripe?

Merchants can anticipate transaction fees of approximately 2.90% plus $0.30 per online transaction, with additional charges for international payments and currency conversion. It's essential to consider these costs when using Stripe for payment processing.

How do Stripe’s rates compare to competitors?

Stripe's rates are generally competitive with those of PayPal, Square, Braintree, and Adyen, often featuring similar or slightly lower fees, making it a viable option for businesses looking to minimize costs.

Is Stripe suitable for small businesses and startups?

Yes, Stripe is well-suited for small businesses and startups because it has no setup or monthly fees and offers flexible payment processing options. This makes it an ideal choice for those just starting out.

What are the pros and cons of using Stripe?

Using Stripe offers competitive fees and a robust platform with additional services like Stripe Billing and Radar, making it a strong choice for many businesses. However, be aware of potential extra fees for specific services and the necessity for proactive negotiation to secure the best rates.

How can businesses negotiate lower Stripe fees?

To negotiate lower Stripe fees, businesses should understand the fee structures and contact Stripe support to discuss their transaction volumes. Presenting documented negotiation attempts can strengthen their case for reduced fees.