Stripe pricing breakdown: Fees, features, & plans in 2025

Stripe is a popular payment processing platform, but its pricing can be a bit tricky to understand. It’s understandable to be confused, as Stripe offers a wide range of products and services, each with its own pricing structure.

In this post, we'll break down Stripe's pricing and fees in detail. This way, you’ll be able to make informed decisions about whether it's the right payment processor for your business.

We'll cover:

• Stripe's pricing and fees
• Features and services affecting Stripe costs
• Pros and cons and how Stripe compares to competitors
• Why Orb is the billing platform of your choice

Let’s get started by answering a common question about Stripe pricing.

Is Stripe free?

Stripe accounts are free to set up and maintain. There are no monthly fees or setup fees for Stripe's basic payment processing services. That's a great starting point, However, while creating an account won't cost you anything, Stripe is not a completely free service.

*Please note: The following prices were current at the time of publishing this post. However, for the latest price details about Stripe, check their current rates at the official website.

Understanding Stripe's pay-as-you-go model

The Stripe cost comes into play when you actually start processing transactions. Stripe uses a pay-as-you-go model. Going with this approach means that Stripe fees are charged per transaction. 

So, every time a customer makes a purchase through your Stripe account, a percentage of that transaction, plus a small flat fee, is deducted. This is how stripe pricing works for their core service. Let's break down how this works in a bit more detail. 

A simple breakdown of Stripe pricing 

For online card transactions, the standard Stripe fees are typically around 2.9% of the transaction amount plus a flat fee of $0.30. 

That means if a customer buys something from your online store for $100, Stripe will deduct approximately $3.20 ($2.90 + $0.30) before depositing the remaining $96.80 into your account. This fee covers the costs associated with processing the payment, including things like network fees and security measures.

Think of it like this: You can have a free gym membership, but you still pay for the personal trainer. The membership is the account, and the trainer is the transaction processing.

Costs for additional services

Beyond the per-transaction fees, Stripe also offers a range of additional services, like Stripe Billing for recurring subscriptions and Stripe Connect for marketplace payments. 

These services come with their own pricing structures. For instance, Stripe Billing charges a percentage of your recurring revenue, while Stripe Connect has fees per connected account and payouts. 

While the basic account is free, using these extras will add to your overall Stripe cost. It's important to carefully consider which services you need and understand their associated fees to accurately budget your payment processing expenses.

Stripe is free to join, but not free to use. The Stripe fees associated with transactions and other services are how they make money. Understanding these costs is important for any business considering using Stripe.

Standard Stripe payment processing fees

Stripe's stripe pricing is generally considered transparent, especially when compared to some other payment platforms. Familiarizing yourself with the core Stripe payment processing fees is essential for any business. Here's a breakdown of the standard charges you can expect:  

• Domestic credit card fees: For most online transactions where the card is present virtually (card-not-present), Stripe charges a fee of approximately 2.9% of the transaction amount plus a flat fee of $0.30. So, on a $100 sale, you'd pay about $3.20.
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• ACH transfer fees: If you accept payments via ACH (Automated Clearing House) transfers, which are direct bank transfers, Stripe’s stripe payment fees are lower. Expect to pay around 0.8% of the transaction amount, with a maximum fee of $5. This can be a cost-effective option for larger transactions.
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• Digital wallet fees: Payments made through popular digital wallets like Apple Pay or Google Pay are typically processed at the same rate as standard credit card transactions – around 2.9% + $0.30.  

Additional Stripe payment processing fees

Beyond the standard Stripe payment fees, it’s important to be aware of some potential extra charges. These usually apply to specific situations or services:

• International payment fees: When dealing with international customers, Stripe charges an additional 1.5% fee on the transaction amount. This fee is added to the standard processing fee. So, on a $100 sale from a customer abroad, the international fee would be $1.50, bringing the total fee to $4.70 ($3.20 + $1.50).
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• Currency conversion fees: If you need to convert the payment into a different currency, Stripe will add another fee for this service, typically around 1% of the transaction amount.
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• Dispute and chargeback fees: If a customer disputes a charge, leading to a chargeback, Stripe charges a fee to cover the cost of handling the dispute. This fee is usually around $15.
  

Remember: Understanding these extra stripe payment fees can help you accurately predict your payment processing costs. By factoring in all potential charges, you can make informed decisions about your pricing and ensure smooth financial management for your business.

Stripe credit card fees and additional charges

Stripe credit card fees vary depending on whether the card is domestic or international, and there are a few other potential charges to consider that we haven't yet discussed. Let’s take a closer look at how these two fees differ.

Domestic vs. International credit card fees

For domestic credit cards (issued within the same country as your business), Stripe's standard fee is around 2.9% of the transaction amount plus $0.30 per transaction. This is the baseline you should always keep in mind.

However, if you're dealing with international cards (issued in a different country), the fees are higher. Stripe adds a 1.5% fee to the transaction amount for international cards. Keep in mind this is in addition to the standard 2.9% + $0.30. So, a $100 transaction from an international customer would incur a fee of $4.70 (2.9% + 1.5% + $0.30).

Additional charges

Beyond the core transaction fees, there are a few other potential costs to be aware of that we haven't covered yet:

• Instant payout fees: Stripe offers Instant Payouts, allowing companies to access their funds faster than the standard processing time. The fee for this service is 1% of the payout amount. However, the minimum and maximum fees vary by country and currency. 
  
  For example, in the United States, the minimum fee is $0.50, and the maximum is $9,999. In Canada, the minimum is CAD 0.60, and the maximum is CAD 9,999. It's important to note that these fees and limits can differ depending on the country.

• Monthly minimums (for certain custom pricing): While most Stripe users operate on a pay-as-you-go plan with no monthly fees, businesses with high transaction volumes can negotiate custom pricing with Stripe. 
  
  In such cases, there might be agreements on monthly minimum processing amounts or other terms as part of the custom contract. These arrangements are typically tailored to the specific needs and transaction volumes of large enterprises.

By familiarizing yourself with these various stripe credit card fees and extra charges — including these less frequent ones — you can accurately predict your payment processing expenses and make informed decisions about your business's financial management. 

Stripe plans: Advanced features

Stripe offers a suite of advanced features designed to cater to various business needs. Let's explore these in detail.

1. Stripe Billing

Stripe Billing allows you to easily create and manage recurring subscriptions, automate invoicing, and handle recurring payments. Stripe Billing supports various subscription models, including fixed-price subscriptions, tiered plans, and usage-based billing.

Pricing: 

Stripe Billing's pricing is usage-based. For the "Starter" plan, the fee is 0.5% of recurring charges, and for the "Scale" plan, it's 0.8%. So, if you process $10,000 in recurring revenue through the "Scale" plan, the fee would be $80.

Use cases: Stripe Billing is ideal for SaaS companies, subscription box services, membership sites, and any business that relies on recurring revenue. It simplifies subscription management and helps improve cash flow predictability.

2. Stripe Connect

Stripe Connect is for platforms that facilitate transactions between multiple parties. It allows you to easily manage payments to sellers, vendors, or other connected accounts. Think of platforms like ride-sharing apps or freelance marketplaces.

Pricing: 

Stripe Connect offers different pricing models. One option is where Stripe handles the pricing for your users, and they charge a fee per transaction plus a percentage. 

Another model allows you to set your own fees for connected accounts. In this case, you'll typically pay a fee per monthly active account and a fee per payout sent. 

Use cases: Stripe Connect is perfect for marketplaces, crowdfunding platforms, gig economy apps, and any business that needs to manage payments between multiple parties. 

3. Stripe Terminal

Stripe Terminal allows you to accept in-person payments using Stripe's platform. It integrates with Stripe's online payment processing, giving you a unified view of your transactions.

Device costs: 

Stripe offers different card reader options. The BBPOS Chipper 2X BT is a more affordable option, while the BBPOS WisePOS E is a more advanced terminal. Pricing for these devices varies.

Payment fees: 

When you process payments through Stripe Terminal, the fees are different from online transactions. Expect to pay a percentage of the transaction amount plus a small flat fee per transaction. These fees are generally lower than online transaction fees due to the card being physically present.

Use cases: Stripe Terminal is suitable for retail stores, restaurants, pop-up shops, and any business that accepts in-person payments. It unifies your online and offline sales data, making reconciliation simpler.

4. Stripe Atlas

Stripe Atlas is a service that helps startups incorporate in the United States. It assists with legal and financial aspects of setting up a company, including forming an LLC or C corporation, creating a U.S. bank account, and issuing founder stock.

Pricing: 

Stripe Atlas charges a $500 one-time fee for the setup process. There’s also a $100 yearly fee for ongoing maintenance costs after your first year. Atlas can be a valuable resource for international founders looking to establish a U.S. presence.

Use cases: Stripe Atlas is designed specifically for startups, especially those founded by individuals outside the U.S. It simplifies the often intimidating process of company formation and provides access to vital resources.

5. Stripe Radar

Stripe Radar is a fraud prevention tool that uses machine learning to identify and block potentially fraudulent transactions. It helps businesses reduce chargebacks and protect their revenue.

Pricing: 

Stripe Radar's pricing isn't as simple as a single fee per screened transaction. It depends on how you use Radar:

• Stripe Radar's machine learning: This is the basic fraud protection that comes with your standard Stripe payment processing account.
  
  There is no separate fee for this unless you're on a custom pricing plan with Stripe. If you are on a custom plan, the fee is $0.05 per screened transaction. For most users on the standard 2.9% + $0.30 pricing, this is essentially "free" as it's bundled.  

• Stripe Radar for fraud teams: This is an advanced fraud protection product designed for businesses with dedicated fraud teams and more sophisticated needs. This feature has a separate cost. It's $0.07 per screened transaction, or $0.02 per screened transaction for accounts with standard 2.9% + $0.30 Stripe pricing.  

Use cases: Stripe Radar is beneficial for any business that processes online payments, especially those with high transaction volumes or a higher risk of fraud. It acts as an extra layer of security and helps safeguard your revenue.

Usage-based and custom pricing models

While Stripe's standard stripe pricing is well-suited for many businesses, they also offer options for those with unique needs. Let's explore these alternative pricing models:

Usage-based pricing

Stripe understands that some businesses have fluctuating transaction volumes or prefer a pricing structure tied directly to usage. While their standard pricing is already a form of usage-based pricing (pay-as-you-go), they also offer custom usage-based pricing for eligible businesses.

Custom pricing for Enterprise clients

For enterprise-level businesses with very large transaction volumes, Stripe offers custom pricing solutions. These tailored solutions often include lower stripe pricing than the standard rates and can involve customized fee structures.

Enterprise clients may also benefit from dedicated account management, priority support, and other perks. These custom arrangements are designed to meet the specific requirements of large organizations with complex payment needs.

If your business handles a substantial volume of transactions and you're interested in exploring custom enterprise pricing, your next step should be to reach out to Stripe directly.

Comparison table: Stripe fees vs. Competitors

This chart illustrates the differences between Stripe vs. Orb and other billing platforms.

Pros and cons of Stripe pricing

Stripe's pricing model has a lot to offer, but it's not perfect for every business. Let's weigh the advantages and disadvantages.

Pros

• Relatively transparent pricing: Stripe is generally upfront about its fees. The standard transaction rates are clearly stated, making it easier for businesses to estimate their stripe pricing costs.
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• Pay-as-you-go model: The pay-as-you-go structure is beneficial for businesses of all sizes, especially startups and those with fluctuating sales. You only pay when you process a transaction.
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• Developer-Friendly Platform: Stripe's extensive documentation and APIs make it a favorite among developers. This feature allows for a high degree of customization and integration with other systems.
  
  
• Scalability: Stripe can handle businesses of all sizes, from small startups to large enterprises. It's built to grow with you, which is critical for long-term success.

Cons

• International transaction fees: The additional fees for international transactions can add up quickly, making Stripe less cost-effective for businesses with a large international customer base.
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• Custom pricing limitations: While Stripe offers custom pricing, it's primarily geared towards very high-volume businesses. Smaller businesses may find it challenging to negotiate lower rates.
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• Complex billing challenges: Although Stripe offers Stripe Billing, it can still be difficult to manage very complex billing models (like usage-based billing with multiple tiers and add-ons) without significant custom development.
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• Support for in-person payments: While Stripe does offer Stripe Terminal for in-person payments, it's not always seen as their strongest suit. Businesses heavily reliant on brick-and-mortar sales might find other solutions more tailored to their needs.

Is Stripe worth the cost?

Let's explore when Stripe is a great fit and when you might want to consider alternatives: 

When Stripe is a good choice

• E-commerce businesses: Stripe's seamless integration with popular e-commerce platforms and its focus on online payments make it a strong choice for businesses selling goods or services online.
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• SaaS Providers: Stripe's recurring billing features and subscription management tools are well-suited for SaaS companies. Stripe's developer-friendly platform also allows for customization and integration with other SaaS tools.  
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• Marketplaces and platforms: Stripe Connect is a valuable tool for businesses that facilitate transactions between multiple parties, such as marketplaces and gig platforms. 
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• Businesses that value flexibility: Stripe's customizability and range of features make it a good option for businesses that need a payment processor that can adapt to their specific needs. 

When Stripe might not be the best fit

• Small businesses with primarily in-person sales: While Stripe offers Stripe Terminal for in-person payments, other solutions like Square or PayPal are more cost-effective for small businesses that primarily operate in a physical store.
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• SaaS companies needing advanced billing options: While Stripe Billing is robust, SaaS companies with complex billing needs, such as usage-based pricing with multiple tiers and add-ons, might find Orb a more suitable option. 

Orb is designed specifically for SaaS businesses and offers greater flexibility and built-in features for managing intricate billing structures. 

Orb: Truly flexible pricing

You should now be familiar with Stripe pricing and how it works. Stripe is a solid solution for many online businesses. 

However, if your business relies on complex, usage-based pricing models, you might find yourself needing more. This is especially true for SaaS companies with evolving pricing strategies. 

That's where Orb shines.

Orb is the billing engine that transforms your usage data into accurate invoices. It allows you to:  

• Earn customer trust: Know your numbers are correct with a billing infrastructure that creates a single source of truth for your entire company.
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• Track usage with precision: Orb's metering infrastructure confirms accurate billing every time. Connect product usage data with billing, right out of the box. Focus on improving your core product, not scaling data pipelines.  
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• Evolve your pricing & grow revenue: Change pricing on the fly. Experiment with volume discounts, dimensional pricing, prepaid credits, and more. Ship pricing updates as often as you ship product updates.  
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• Invoice with confidence: Orb's invoices, with real-time visual data, give you peace of mind and provide full transparency to your customers. Help your finance team with a single source of truth for revenue data.  
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• Report with accuracy: Get revenue right the first time. Orb integrates with your existing tools and eliminates errors, reducing revenue leakage and churn. Make revenue recognition effortless and simplify compliance with ASC 606 standards.  

Ready to move beyond rigid billing systems? Check out our pricing options and find a plan that fits your specific business needs.