~1 min read
PayPal charges 3.49% + $0.49 per domestic online transaction — slightly higher than Stripe's 2.9% + $0.30. For international payments, fees rise to 4.99% + $0.49. Micropayments (transactions under $10) have a special rate: 5% + $0.05, which is cheaper on tiny amounts but expensive as a percentage.
PayPal vs Stripe fee comparison
| Scenario | PayPal | Stripe |
|---|---|---|
| $10 domestic | $0.84 (8.4%) | $0.59 (5.9%) |
| $100 domestic | $3.98 (4.0%) | $3.20 (3.2%) |
| $1,000 domestic | $35.39 (3.5%) | $32.30 (3.2%) |
| $100 international | $5.48 (5.5%) | $4.70 (4.7%) |
For most transaction sizes, Stripe is cheaper. PayPal's advantage is consumer familiarity — checkout conversion can be higher when PayPal is offered as an option.
Fee pass-through mode
If you need to receive a specific net amount, the calculator solves the gross-up: to receive exactly $100 via a domestic PayPal charge, you would need to charge $104.66.
PayPal Friends & Family
Personal payments (Friends & Family) are free for domestic bank-funded or PayPal-balance transactions — but using this method for business payments violates PayPal's Terms of Service. Doing so risks account termination without the seller protection that standard transactions provide.
Frequently asked questions
Does PayPal charge for refunds? PayPal returns the fixed $0.49 fee but keeps the percentage portion (3.49%) when you refund. This differs from Stripe, which returns the fixed fee but also keeps the percentage.
Can I avoid PayPal fees? For domestic bank account transfers to personal contacts, yes. For business transactions, the only way to reduce fees is through PayPal's Merchant Rate program — which requires applying and demonstrating high transaction volume. Generally, Stripe offers lower fees for most business use cases.