Understanding Transaction Fees for Global Business

In the digital economy, moving money isn't free. Whether you're a freelancer invoicing a client or a SaaS founder scaling a checkout flow, processing fees can eat into your margins significantly. This Global Payment Fee Calculator helps you accurately predict those costs across the two most popular payment gateways: Stripe and PayPal.

Stripe Fees vs PayPal Fees: What's the Difference?

While both providers offer similar services, their fee structures differ, especially for international transactions and smaller payments.

• Stripe: Known for its developer-friendly API. The standard fee is 2.9% + $0.30 for domestic cards. International cards usually add a 1.5% surcharge.
• PayPal: The industry veteran. Standard domestic checkout fees are often slightly higher at 3.49% + $0.49, but they offer broad consumer trust that can increase conversion rates.

The Power of the 'Reverse Calculator'

One of the most common mistakes freelancers make is forgetting to include the processing fee in their quote. If you need to clear exactly $1,000.00 to pay your bills, and you charge the client $1,000.00 through Stripe, you will only receive $970.70.

By using our "Reverse Charge" mode, you can see that you actually need to charge $1,030.18 to ensure that after Stripe takes their cut, exactly $1,000.00 lands in your bank account.

3 Tips to Lower Your Processing Fees

1. ACH/Wire Transfers: For large B2B payments (over $5,000), skip the credit card. Stripe ACH transfers are capped at $5.00, saving you hundreds in fees compared to the 2.9% card fee.
2. Annual Billing: If you run a subscription business, encouraging annual billing reduces the number of fixed "per-transaction" fees ($0.30) you pay over the year.
3. Local Currency: Always try to charge in your functional currency. Cross-currency conversion fees are often the most hidden and expensive part of international business.