Payment Provider Comparison — Real Fee Data

2026 Payment Provider Fee Structure

Stripe (The Developer's Choice)

Online payments (credit/debit cards):

• Visa/Mastercard: 2.9% + $0.30
• American Express: 3.5% + $0.30
• Debit cards: 2% + $0.30
• ACH transfers (US): 0.8% (capped $5)

Physical/in-person:

• Tap, dip, or swipe: 2.7% + $0.05
• Contactless: 2.7% + $0.05

Monthly volume discounts:

• $50k+/month: Negotiable (typically 2.5% + $0.25)
• $500k+/month: Negotiable (typically 2.2% + $0.25)

---

Square (The Point-of-Sale Leader)

Online payments (credit/debit):

• Visa/Mastercard: 2.6% + $0.30 (lower than Stripe)
• American Express: 3.4% + $0.30
• Debit: 2% + $0.30
• ACH: 1% (capped $5, slower settlement)

In-person (Square reader):

• Card swipe: 2.6% + $0.10
• Card dip: 2.6% + $0.10
• Contactless: 2.6% + $0.10

Monthly fees:

• Square Online: $0 (no platform fee, just per-transaction)
• Square POS: $0 (hardware is one-time $99–$299)

Advantage: Lowest in-person rates, free platform tier

---

PayPal (The Legacy Player)

Credit/debit card payments:

• Online: 2.9% + $0.30 (same as Stripe)
• In-person: 2.7% + $0.30 (via PayPal Here)

Branded payment buttons:

• 2.2% + $0.30 (lower rate for subscription/recurring)

Volume discounts:

• $100k+/month: Negotiate to ~2.5%
• $500k+/month: Negotiate to ~2.3%

PayPal balance/wallet:

• If customer pays from PayPal balance: 0% + $0.30 (huge savings opportunity)

Disputes: 2.9% reversal for chargeback/disputes (PayPal Plus membership available)

---

Wise (International Transfers)

International bank transfers:

• Mid-market rate + 0.9% fee (transparently displayed)
• Receiver gets real exchange rate (not marked-up bank rate)

Use case: Paying overseas suppliers, international settlements

Example: Transfer $10,000 USD to EUR

• Traditional bank: 3–4% markup on exchange rate = $300–$400 loss
• Wise: 0.9% fee = $90 loss
• Savings: $210–$310 per transfer

---

Real Cost Comparison (Monthly)

Scenario: SaaS platform, $50k/month revenue

Provider A: Stripe (2.9% + $0.30 per transaction)

• 500 transactions
• Total fees: ($50,000 × 2.9%) + (500 × $0.30)
• = $1,450 + $150
• Monthly cost: $1,600
• Annual cost: $19,200

Provider B: Square (2.6% + $0.30 per transaction)

• 500 transactions
• Total fees: ($50,000 × 2.6%) + (500 × $0.30)
• = $1,300 + $150
• Monthly cost: $1,450
• Annual cost: $17,400

Provider C: PayPal (2.9% + $0.30, assuming 30% via PayPal balance at 0% + $0.30)

• 500 transactions: 350 card (2.9% + $0.30), 150 balance ($0.30 only)
• Card fees: ($35,000 × 2.9%) + (350 × $0.30) = $1,015 + $105 = $1,120
• Balance fees: 150 × $0.30 = $45
• Monthly cost: $1,165
• Annual cost: $13,980

Savings hierarchy: PayPal (with balance) > Square > Stripe (at standard rates)

---

International Payment Processing

For receiving payments from international customers:

For merchant: Stripe wins (covers fx with 2.9% rate)

For B2B: Wise wins (0.9% is unbeatable for large transfers)

---

Chargeback & Dispute Costs

When a customer disputes a charge:

Why rates differ:

• Square's advanced fraud detection reduces false chargebacks
• PayPal's higher fee incentivizes merchants to use them for disputes
• Stripe offers chargeback insurance (extra layer)

---

Recommendation by Business Type