For most small businesses, the three dominant payment processors are Stripe, PayPal, and Shopify Payments. Which one is cheapest depends almost entirely on your average transaction size and your monthly volume.
Fee comparison at a glance (2026)
| Processor | Rate | Fixed | Best for |
|---|---|---|---|
| Stripe | 2.9% | $0.30 | SaaS, developer-first, APIs |
| PayPal Standard | 2.99% | $0.49 | Consumer trust, marketplace |
| PayPal Checkout | 3.49% | $0.49 | PayPal-button conversions |
| Shopify Basic | 2.0% | $0.25 | eCommerce on $39/mo plan |
| Shopify | 1.7% | $0.25 | eCommerce on $105/mo plan |
| Shopify Advanced | 1.5% | $0.25 | High-volume eCommerce |
The break-even thresholds
Shopify Basic vs Stripe: Shopify Basic ($39/mo plan) costs the same as Stripe at roughly $3,900/month in volume (the $39 monthly fee offsets savings of ~1%). Above that, Shopify Basic is cheaper; below it, Stripe wins.
Shopify vs Stripe at $100/transaction:
| Processor | Fee on $100 | You keep |
|---|---|---|
| Stripe | $3.20 | $96.80 |
| PayPal Standard | $3.48 | $96.52 |
| Shopify Basic | $2.25 | $97.75 |
| Shopify Advanced | $1.75 | $98.25 |
Which should you choose?
- Under $2,000/month volume → Stripe (no monthly fee, best developer experience)
- eCommerce on Shopify → Shopify Payments (lower rates, no external transaction fee)
- Consumer-facing with high cart abandonment → PayPal (conversion uplift offsets rate)
- Over $80,000/month → negotiate with Stripe or evaluate Stripe vs Paddle/FastSpring
Plug your average transaction amount into the Payment Fee Comparison to see exact fees and the cheapest option for your specific situation.