Stripe Fee Calculator: How it works

Jay Steph
3 min readJan 12, 2024
Stripe Fee Calculator

Choosing Stripe as a payment processor offers merchants a variety of benefits including seamless integration, recurring billing capabilities, and worldwide acceptance of major card brands. However, it's important for businesses to know the real expense behind each swiped transaction. This guide will uncover Stripe's fee structure and provide tools to estimate processing costs. Find best Stripe Fee Calculator here:

Breaking Down Stripe's Basic Rate Card

At its core, Stripe uses a rate model that levies charges based on a percentage of sale plus a small per-transaction charge. Specifically:

Transaction fees are 2.9% of the payment amount. So a $100 sale incurs 2.9% of $100, which is $2.90.

Also added is a 30 cent flat fee per sale.

To demonstrate with an example, if a customer pays $50 through Stripe:

2.9% of $50 is $1.45 (the percentage charge)

Plus the 30 cent flat fee

Total fees for that sale are $1.45 + $0.30 = $1.75

This baseline fee schedule applies to all standard credit and debit card payments Stripe handles. But as we'll explore, other variables can impact the true rate.

Additional Expenses to Consider

Beyond regular transaction fees, Stripe tacks on extra costs under certain circumstances:

  • Chargebacks: Disputes cost $15 each to investigate and resolve.
  • Manual sale reviews: Higher-risk orders require a $5 review fee.
  • Account fees: Connecting bank accounts has a $50 setup fee and $7 monthly maintenance.
  • Currency conversions: Exchanging currencies levies a 2% surcharge.

Moreover, special arrangements like volume pricing or industry rates may provide discounts for qualified merchants. Knowing all applicable charges is key.

Factors Influencing Stripe Costs

Several factors skew a business's actual Stripe rate up or down from the baseline. Estimating expenses requires accounting for:

  • Card type used - Debit costs less than credit usually.
  • Industry - Some like travel gain lower negotiated prices.
  • Monthly volume - Over $50k may qualify for cheaper tiered pricing.
  • Location - Domestic US transactions incur fewer fees than international.
  • Payment method - Alternatives to cards have preferential pricing.
  • Card networks - Rates vary between Visa, Mastercard, Discover, etc.

Clearly, no two Stripe statements will mirror basic listed rates since various attributes dictate pricing.

Stripe Fee Calculator

To demonstrate how these factors blend together, here's an example Stripe fee estimation tool:

Average cart total: $50

Monthly transactions: 100

Card type: Credit

Country: USA

Volume tier: None

At the baseline 2.9% + $0.30:

2.9% of $50 is $1.45 per sale

Plus $0.30 flat fee

Total per sale: $1.45 + $0.30 = $1.75

Sales per month: 100

Estimated monthly fees: 100 * $1.75 = $175

This calculator lets you adjust variables to refine your own projected Stripe expenses.

Lowering Processing Expenses Over Time

With Stripe rates tied to business characteristics and activity, merchants can optimize:

  • Accept multiple payment types - Lower average costs.
  • Limit chargebacks - Avoid excessive dispute fees.
  • Process higher ticket items - Spreads fixed fees over larger amounts.
  • Grow monthly volume - Unlock discounted pricing tiers as a larger partner.
  • Consider least-cost routing - Route to lowest rate processor automatically.
  • Negotiate directly with Stripe - Leverage large processing size for customized pricing.
  • Watch statements closely - Optimize choices that reduce per-transaction costs.

Regularly assessing Stripe activity allows merchants opportunities to bring fees down gradually as their operation expands.

Common Stripe Cost Questions

Some frequently asked questions about Stripe invoicing and payments:

Where can I see my fees?

Log into your Stripe dashboard Payments section or generate statements.

When am I billed?

Fees are assessed at sale time but invoicing happens monthly for prior period activity.

What if a customer refunds?

Refunds return the full sale amount to buyers but associated fees are non-refundable.

Are there monthly minimums?

No, only pay for real transactions processed, not a flat subscription.

Any termination penalties?

Stripe has no long-term contracts, so you can leave at any time without early termination fees.

Does Stripe report payments?

No, payment processing is not sent to credit bureaus for merchant account balances or activity.

With an understanding of Stripe's fee determinants, merchants can control costs as businesses grow with easy online payment acceptance.