The verdict
- Pick PayPal POS if you sell mostly in person. It charges 2.29% + 9¢ per in-person card sale, with a free POS app and no monthly fee. Stripe charges 2.7% + 5¢ and has no POS app.
- Pick Stripe if you sell mostly online. Stripe charges 2.9% + 30¢. PayPal’s standard card rate is 2.99% + 49¢, and PayPal Checkout and Venmo cost 3.49% + 49¢.
- Disputes cost more at PayPal. PayPal lists a $20 chargeback fee and a $15 dispute fee ($30 at high volume). Stripe charges $15, plus $15 more if you respond manually, refunded if you win.
- PayPal can raise its rate. Its fee page says it may raise the percentage part of your fees with 30 days’ notice, up to 5.00% per transaction.
| Feature | Stripe Checked Oct 19, 2026 | PayPal POS Checked Oct 19, 2026 |
|---|---|---|
| Pricing | Flat rate | Flat rate |
| In person | 2.7% + 5¢ | 2.29% + 9¢ |
| Online | 2.9% + 30¢ | 2.99% + 49¢ |
| Keyed in | 3.4% + 30¢ | 3.49% + 9¢ |
| Monthly cost | $0 (Reader bought separately) | $0 (Free POS app) |
| Contract | No contract | No contract stated |
| Payouts | 2 business days (standard) | Instant transfer for 1.5% (min $0.50) |
| True cost: first year at $10K/month | $3,539 (est.) | $3,209 (est.) |
| Visit | Visit Stripe | Visit PayPal POS |
What a month costs
These are estimates. They use each provider’s published standard rates and US-issued cards. For Stripe in person, they assume a Stripe reader you bought, not Tap to Pay, and they leave out POS software, since Stripe doesn’t list a POS plan.
Example 1: a small shop, $5,000 a month in person, 200 payments.
- Stripe: 2.7% × $5,000 = $135, plus 200 × 5¢ = $10. About $145 a month, plus your POS software.
- PayPal POS: 2.29% × $5,000 = $114.50, plus 200 × 9¢ = $18. About $132.50 a month, with the POS app included.
Example 2: an online shop, $20,000 a month, 400 orders.
- Stripe: 2.9% × $20,000 = $580, plus 400 × 30¢ = $120. About $700 a month.
- PayPal, standard card payments: 2.99% × $20,000 = $598, plus 400 × 49¢ = $196. About $794 a month.
- PayPal Checkout or Venmo: 3.49% × $20,000 = $698, plus $196. About $894 a month.
PayPal’s fee page also lists “Advanced Credit and Debit Card Payments” at 2.89% + 29¢. On the same month that’s 2.89% × $20,000 = $578, plus 400 × 29¢ = $116, or about $694. We haven’t confirmed which accounts get that rate, so ask PayPal before you count on it.
Run your own month in the Stripe fee calculator or compare every provider in the fee calculator.
Differences that matter beyond rates
POS app. PayPal says you can “run operations with our free POS app.” Stripe sells readers and says they “integrate with hundreds of third-party POS systems,” but doesn’t list a POS plan.
Hardware. PayPal’s first card reader is $29, then $79 for each one after that. The PayPal Terminal is $199, or $239 with a barcode scanner. Stripe’s Reader M2 is $59 and its S700 is $299.
Typed-in cards. Stripe charges 3.4% + 30¢ (2.9% + 30¢ plus 0.5% for manually entered cards). PayPal charges 3.49% + 9¢.
Payouts. Stripe’s standard US payout is 2 business days. We couldn’t find PayPal’s standard transfer timing on the pages we checked. Both charge 1.5% (50¢ minimum) for instant payouts.
Bank payments. Stripe lists ACH Direct Debit at 0.8%, capped at $5. PayPal lists 0.80% capped at $5 for online ACH, and 1% capped at $10 for Pay by Bank on invoices. PayPal also charges $5 for each ACH return.
Extra Stripe fees. International cards add 1.5%, and currency conversion adds 1%.
Contracts. Stripe says it charges no setup, monthly or closure fees. PayPal says there are “no monthly or setup fees” for its POS.
Pick Stripe if
- Most of your sales happen online, through your own site or app.
- You already have POS software that works with Stripe’s readers.
- You get disputes now and then and want the lower dispute fees.
Pick PayPal POS if
- Most of your sales are in person, and you want a free POS app.
- You’re a small seller who wants the cheapest card reader to start ($29).
- You’re comfortable with terms that let PayPal raise its percentage, with 30 days’ notice.
More on each: our full pages on Stripe fees and PayPal POS fees. Also weighing Square? See Square vs Stripe.
Common questions
Is Stripe cheaper than PayPal?
Online, usually yes. Stripe charges 2.9% + 30¢ per card payment. PayPal's standard card rate is 2.99% + 49¢, and PayPal Checkout and Venmo cost 3.49% + 49¢. In person, PayPal POS is cheaper at 2.29% + 9¢, against Stripe's 2.7% + 5¢. Your mix of online and in-person sales decides it.
What are PayPal's chargeback fees compared with Stripe's?
PayPal lists a $20 chargeback fee and a $15 standard dispute fee, or $30 for high-volume dispute fees. Stripe charges $15 for each dispute you receive, plus $15 more if you respond manually. Stripe refunds that second $15 if you win. If you get a lot of disputes, PayPal's fees add up faster.
Can PayPal raise its fees?
Yes, according to its own fee page. PayPal says it may increase the percentage part of your transaction fees after giving you 30 days' notice, up to 5.00% per transaction. Read PayPal's fee terms before you count on today's rate staying the same.
Does Stripe or PayPal have a POS app?
PayPal does. PayPal POS comes with a free app and no monthly or setup fees, and its first card reader is $29. Stripe sells readers from $59 and says they work with hundreds of third-party POS systems, but it doesn't list a POS plan of its own. So with Stripe, budget for POS software.