Understanding Stripe's Payment Processing Fees

What Stripe Charges and When

Stripe takes a cut of every transaction that moves through their system. For most U.S. businesses accepting cards online or in person, that cut is 2.9% plus 30 cents per transaction. If a customer pays you $100 by card, Stripe removes $3.20 and you receive $96.80. The percentage and flat fee both apply to every single transaction—they don't replace each other.

The 2.9% + 30¢ rate is Stripe's standard for online payments, phone orders, and invoices. In-person card readers (the physical terminals) charge 2.7% plus 5 cents, which is slightly lower because the card is physically present and fraud risk is lower. International card payments cost more: 3.9% plus 30 cents when the cardholder's bank is outside the U.S.

ACH bank transfers (when a customer pays directly from their checking account) cost 0.8% with a $5 minimum and $5 maximum. So a $100 ACH payment costs you 80 cents, but a $1,000 ACH payment still costs only $5. Wire transfers are flat: $15 per wire, regardless of amount.

Key Takeaways

• Card payments cost 2.9% plus 30 cents online, 2.7% plus 5 cents in person, and 3.9% plus 30 cents for international cards.
• ACH bank transfers cost 0.8% capped at $5 per transaction, making them cheaper for large payments.
• Stripe charges you immediately when the transaction happens, not when the customer's bank clears the money.
• Refunds, disputes, and chargebacks carry separate fees that stack on top of the original transaction cost.
• Monthly volume, industry type, and payment method all affect whether you pay the standard rate or negotiate a custom one.

When Stripe Takes the Money

Stripe deducts fees from your account in real time, the moment the customer completes the payment. You don't wait for the customer's bank to clear the transaction—Stripe's fee comes out immediately. This matters because if your Stripe account balance drops below zero, Stripe will hold future payouts until you cover the negative balance.

Your actual money (the amount after Stripe's fee) lands in your connected bank account on a schedule you choose during setup. Most businesses receive payouts daily or weekly. If you process a payment on Monday at 3 p.m., Stripe takes their fee instantly, but the remainder might not hit your bank until Wednesday or the following Monday, depending on your payout schedule.

Extra Fees Beyond the Transaction Rate

The percentage and flat fee are not the only charges. Stripe adds separate fees for specific situations:

• Refunds: No fee to issue a refund, but Stripe keeps the original transaction fee. If you refund a $100 payment that cost you $3.20, you lose the $3.20 and return $100 to the customer.
• Chargebacks: $15 per chargeback when a customer disputes the charge with their bank. You also lose the original transaction fee.
• Failed payments: No fee for a declined card, but if you retry the payment and it fails again, some Stripe products charge per retry.
• Currency conversion: If a customer pays in a currency you don't accept, Stripe converts it and charges 1% on top of the card processing fee.
• Payout fees: Standard payouts to your U.S. bank are free, but manual payouts or payouts to certain countries cost $25 each.

These extra charges stack on top of your transaction fee. A chargeback doesn't replace the original 2.9% + 30¢—you lose both the transaction fee and pay an additional $15. Understanding which situations trigger these fees helps you budget for the true cost of processing payments.

How Your Industry and Volume Affect Your Rate

Stripe's published rates (2.9% + 30¢) apply to most online businesses. However, some industries pay more because they carry higher fraud or chargeback risk. Subscription services, nonprofits, and marketplaces sometimes negotiate different rates with Stripe's sales team, especially if you process high monthly volume.

If you process less than $1,000 per month, you almost certainly pay the standard rate. At $10,000 or more per month, Stripe may contact you about custom pricing. You can also reach out to their sales team directly to ask, but Stripe does not publish a volume discount schedule—rates are negotiated case by case.

Comparing Stripe to Other Processors

Square charges 2.9% + 30¢ for online card payments, identical to Stripe. PayPal's standard rate is 2.99% + 30¢, slightly higher. Authorize.Net charges 2.9% + 30¢ but requires you to pay a separate monthly gateway fee ($25 to $99 depending on the plan), which Stripe does not charge. For in-person payments, Square's reader costs 2.6% + 10¢, which is lower than Stripe's 2.7% + 5¢.

The real difference between processors is not usually the percentage—it's what you get for that percentage. Stripe includes invoicing, subscription billing, and a developer API at no extra cost. Square bundles point-of-sale hardware and inventory tools. Authorize.Net is older and less user-friendly but works well for businesses that already have their own payment form. The cheapest processor is rarely the best choice if you end up paying for add-ons elsewhere.

Hidden Costs and What to Watch For

Stripe's fee structure is straightforward compared to traditional merchant accounts, but a few things catch people off guard. If you use Stripe's invoicing feature to send a bill to a customer, Stripe charges the standard card fee if the customer pays by card—but if they pay by ACH, you only pay 0.8%. This means you might want to encourage ACH payments for large invoices.

If you use Stripe's point-of-sale app on an iPad or phone, you pay the in-person rate (2.7% + 5¢) even though you're not using a physical card reader. Some businesses assume they'll pay less because they're not buying hardware, but the rate is the same. Disputes and chargebacks can spiral quickly: a single chargeback costs $15, but if you get too many (usually more than 1% of your monthly volume), Stripe may shut down your account. You can dispute a chargeback, but Stripe charges $15 whether you win or lose.

Reducing What You Pay to Stripe

You cannot avoid Stripe's fees entirely if you use Stripe, but you can lower them. Encourage customers to pay by ACH when possible—0.8% is far cheaper than 2.9%. For subscriptions, ACH payments reduce your monthly cost significantly. You can also offer a small discount for ACH payments without violating Stripe's terms, as long as the discount is the same for all customers.

Reduce chargebacks by being clear about what you're charging for. Include a recognizable business name on the statement, send order confirmations immediately, and respond quickly to customer inquiries. Each chargeback you prevent saves you $15 plus the transaction fee plus the original payment amount. If you're a nonprofit, Stripe offers a reduced rate of 1.2% + 30¢ for card payments. You'll need to register as a nonprofit with Stripe and provide tax documentation, but the savings add up fast if you process donations regularly.

Frequently Asked Questions

Does Stripe charge a monthly fee just to have an account?

No. Stripe charges only when you process a transaction. If you don't process any payments in a month, you pay nothing. Some Stripe products (like Stripe Terminal for in-person payments) may have optional monthly plans, but the basic account is free.

What happens if a customer's payment fails?

Stripe does not charge you a fee for a declined card. The transaction simply doesn't go through. If you retry the payment and it fails again, you still don't pay Stripe's transaction fee—you only pay if the payment succeeds.

Can I pass Stripe's fees to my customers?

You can add a surcharge for card payments in most U.S. states, but not all. Some states cap the surcharge at the actual cost of processing. You cannot surcharge ACH or other payment methods. Check your state's laws before adding a surcharge, and disclose it clearly before the customer pays.

Do I pay Stripe's fee if a customer uses a gift card or prepaid card?

Yes. Stripe charges the same rate whether the card is a credit card, debit card, or prepaid card. The fee applies to the payment method, not the source of funds.

What's the difference between Stripe and Stripe Connect?

Stripe is for processing your own payments. Stripe Connect is for marketplaces and platforms that process payments on behalf of other sellers. Connect charges the same transaction fees but adds complexity around how money flows to each seller. Most small businesses use regular Stripe, not Connect.