Stripe vs PayPal Fees: Which is Cheaper for Freelancers?
You just landed a Comparison,000 project! But wait... how much of that will actually hit your bank account?
Payment processing fees are a hidden tax on freelancers. Let's compare the big two: Stripe and PayPal.
The Fees Breakdown (2026)
| Gateway | Credit Card (Domestic) | International Cards | Payout Speed |
|---|---|---|---|
| Stripe | 2.9% + 30¢ | 3.9% + 30¢ | 2-7 Days |
| PayPal | 3.49% + 49¢ | 4.99% + 49¢ | Instant (to PayPal balance) |
Which one should you choose?
Choose Stripe if:
- You want lower fees (Significantly cheaper for large transactions).
- You want a professional checkout experience (No redirecting clients).
- You want better recurring billing support.
Choose PayPal if:
- Your clients *insist* on paying with their PayPal balance.
- You need the money instantly (though transferring to bank takes time).
- You are selling low-ticket digital goods.
The Hidden Cost: Currency Conversion
This is where they both get you. If you bill in USD but your bank account is in EUR/GBP/TRY, both Stripe and PayPal charge an additional **1% to 2.5%** conversion fee.
**Pro Tip:** Use a multi-currency account like Wise to receive payments in the client's currency, then convert it yourself at mid-market rates.
How Followio helps
Followio integrates seamlessly with **Stripe** to give your clients a professional payment portal. You get paid directly to your bank account with the lowest possible fees.
Plus, you can pass the processing fee to the client if your contract allows it!