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How Much Does Stripe Cost?

Last Updated on January 12, 2025
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

As an online business owner, determining the right payment processing solution is crucial for managing expenses and maximizing profits. With its wide range of features and global reach, Stripe has become a popular choice. But before adopting Stripe, it’s important to understand the costs involved. This guide examines Stripe’s pricing structure, fees, and factors influencing the overall cost.

How Much Does Stripe Cost?

Stripe uses a pay-as-you-go pricing model based on transaction volume and additional services utilized. The primary fees consist of:

  • Transaction fees – Charged as a percentage (2.9% for cards) plus a fixed per-transaction fee ($0.30 standard).
  • Monthly recurring fees – For services like Stripe Invoicing ($15/month basic plan).
  • Setup fees – One-time fees for account setup or products like Stripe Atlas ($500 to incorporate).

The transaction fees account for most of Stripe’s revenues. However, larger businesses may negotiate custom discounted rates.

Overall pricing can range widely based on transaction volume, business size, and services used:

  • Small business: $79,800 – $141,600/year
  • Medium business: $85,200 – $227,900/year
  • Enterprise business: $40,900 – $95,800/year

According to NerdWallet, Stripe charges a standard fee of 2.9% plus 30 cents per transaction for online card payments. For in-person transactions via Stripe Terminal, the fee is slightly lower at 2.7% plus 5 cents per transaction. Additionally, ACH credit transactions incur a fee of $1, while ACH direct debit costs 0.8% per transaction with a maximum fee of $5.

Stripe also has additional fees for specific situations. For example, there is a 1.5% fee for international cards, and a 1% fee for currency conversion if needed. If a card is manually entered, an extra 0.5% fee applies, and there are charges for failed ACH transactions and disputes, which can be as much as $15 per disputed transaction, as detailed by NerdWallet.

In terms of hardware for in-person payments, the cost of Stripe’s card readers varies. The Stripe Reader M2 is priced at $59, while the BBPOS WisePOS E costs $249, and the Stripe Reader S700 is available for $349.

For businesses looking to manage subscriptions and recurring billing, Stripe offers additional services. The Stripe Billing service has two plans: the Starter plan charges 0.5% on recurring charges, while the Scale plan charges 0.8%. Furthermore, businesses can utilize Stripe Atlas for setting up their business, which includes a one-time setup fee of $500.

Real-World Stripe Cost Examples

To understand Stripe’s fees in practice, here are two examples of real-world costs:

Stripe Setup for a New Ecommerce Business

  • Stripe account setup: $0
  • Stripe Invoicing setup ($15/month): $15 initial fee
  • Monthly transaction volume: $18,000
  • Transaction fees (~2.9% of $18,000): $522 in fees

Total initial 1-month cost: $537

This illustrates the low barriers to get started. But fees scale up with more transactions.

Stripe Costs for an Established Subscription Company

  • Initial account setup: $0
  • Monthly Invoicing plan: $15
  • Monthly transaction volume: $385,000
  • Transaction fees (~2.9% of $385,000): $11,165
  • Additional Stripe Radar fees: $1,140
  • Total monthly cost: $12,320

For higher volumes, Stripe costs can exceed $10k+ in transaction fees monthly. Additional services add more.

You might also like our articles about the cost of Shopify websites, selling on Amazon, or developing an app.

Transaction Fees and Recurring Costs

Stripe’s pricing is usage-based, so understanding the key fees helps estimate complete costs:

Transaction fees include:

  • Card processing (2.9% + $0.30 per transaction)
  • ACH transfers (0.8% capped at $5)
  • International transactions (additional 1.5% fee)

Recurring fees for services like:

  • Invoicing ($15/month basic plan, 0.4% per invoice)
  • Billing (0.5% – 0.8% for subscription billing)
  • Fraud prevention ($5-$7 per screened transaction with Radar)

Additional one-time fees apply for setup of tools like Invoicing, Billing, and business incorporation via Atlas.

Complex businesses may incur a variety of additional fees that quickly add up. Getting an itemized quote is crucial.

Factors Influencing Stripe’s Pricing

Several factors impact the total fees Stripe charges, including:

  • Transaction volume – More transactions trigger more variable processing fees.
  • Payment method – Card payments have higher fees versus ACH transfers or digital wallets.
  • Business size – Larger businesses can negotiate discounts and customized pricing.
  • Services used – Additional products like Radar or Billing add monthly costs.
  • Development needs – More integration and custom development work adds one-time costs.
  • Location – Cross-border transactions or currency exchanges increase fees.

The pricing structure adjusts across tiers to accommodate businesses of different sizes and transaction volumes. Larger companies get better rates at higher tiers.

Stripe vs Alternatives

Stripe isn’t the only option for collecting payments online. Here’s an overview of how key competitors like PayPal and Square compare:

  • PayPal charges lower transaction fees (2.9% + $0.30 max for cards) but less suited for subscriptions.
  • Square has a flat 2.6% + $0.10 fee per online transaction, with up to 2.9% for in-person payments.
  • Adyen offers pricing tiers based on volume, risk-processing, and local acquirer fees.

The right solution depends on transaction models, required features, and processing volumes. Stripe makes sense for subscription companies but may cost more at higher scales.

Reduce Stripe Costs

Stripe ServicesDon’t want high payment processing bills eating into margins? Consider these tips:

  • Compare transaction fees across providers regularly as pricing evolves.
  • Negotiate lower rates once hitting pricing tier thresholds.
  • Process payments in batches to avoid extra fixed fees.
  • Funnel volume through lower-cost payment methods like ACH.
  • Use third-party tools like QuickBooks Payments for lower rates.
  • Speak to a Stripe sales rep about currently available discounts.

Maximizing transaction throughput optimizes margins by reducing percentage-based fees.

What Experts Say

“Renegotiate pricing every 6-12 months as your business grows. Stripe makes competitive rate adjustments to retain clients achieving higher volumes.” – Max Rothman, Rothman Consulting

“Carefully determine which Stripe products are must-haves versus nice-to-haves. Eliminate unused add-ons providing marginal value to trim unnecessary monthly costs.” – Leanna Davidson, Payment Processing Advisors

Experts recommend regularly evaluating pricing tiers as transaction volumes change and focusing on core products to control costs.

Does Stripe Offer Good Value for the Cost?

According to user reviews, small businesses generally find Stripe provides strong value for the cost. Larger corporations and enterprises highlight Stripe’s scalable pricing tiers as a key benefit over competitors that lack transparent volume-based rates.

However, some users report being surprised by add-on fees for currency conversion or refund processing. Carefully evaluating all pricing components is advised. Overall though, most reviews praise Stripe’s comprehensiveness and developer experience in relation to the competitive pricing.

Stripe Costs in The Future

Based on current market trends, Stripe costs are projected to evolve as follows:

  • Transaction fees likely to incrementally rise 1-3% annually to cover increasing payment infrastructure costs.
  • Monthly recurring product fees expected to see 3-5% annual rises in line with SaaS industry pricing patterns.
  • Custom pricing for larger enterprises will depend on negotiations and special rates offered to retain key accounts.
  • New product introductions could create additional revenue streams and costs.

Inflationary pressures and rising payment costs will likely push Stripe toward moderate fee increases over time to protect margins. Businesses should budget accordingly.

As a market leader, Stripe has some pricing power. However, competitive forces still heavily influence Stripe’s market share and product development:

  • Stripe faces competitive pressure to minimize transaction fees, especially for smaller businesses.
  • Adding new payment methods and global currency support aims to capture more market share.
  • Enterprise pricing tiers and custom rates prevent churn amongst high-volume customers.
  • Competing on developer experience, integrations, and tools beyond just pricing.

To sustain its leadership, Stripe has to balance pricing models across all segments. Its pricing strategy also accelerates wider market shifts toward simplified pay-as-you-go models.

Final Words

While Stripe charges competitive base rates, costs add up quickly. Comparing pricing tiers and negotiating contracts as volumes grow allows companies to optimize the cost-value balance. With the right payment processing partner and pricing structure, businesses can boost margins and better manage expenses.

Answers to Common Questions

What are Stripe’s standard transaction fees?

Stripe charges 2.9% + $0.30 per transaction for online card payments. The fee for in-person card transactions is 2.7% + $0.05 per transaction.

How can I get custom pricing from Stripe?

Large enterprise clients processing over $1 million per year in payments can contact their Stripe sales representative to negotiate discounted or custom pricing rates.

What recurring fees does Stripe charge?

Stripe charges monthly recurring fees for services like Invoicing ($15/month basic plan) and Billing (0.5-0.8% for subscription management). Additional fees apply for fraud prevention, advanced reporting, and other add-ons.

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