Headline rates are broadly comparable and both vary by country, card type and product. The differences that actually move the number are interchange mix, currency conversion margins and any reserve terms. Compare on your own transaction profile rather than on advertised rates.

Can a non-US resident use both with a US LLC?

Yes, given a US entity, an EIN and a US bank account to receive payouts. Both verify beneficial owners and may request additional documentation depending on industry and expected volume.

Often yes for consumer sales, because some buyers will only pay via PayPal and some will not use it at all. For B2B invoicing the case is weaker, and a single processor plus bank transfer is usually enough.

Getting paid: payment processing for a US company

Guide · 2 min read

Stripe vs PayPal: fees, payouts and approval odds

These are not really substitutes. One is infrastructure you build on; the other is a wallet your customers already trust.

The short answer

Stripe is a developer-first processor suited to custom checkouts and subscriptions. PayPal is both a processor and a consumer wallet customers already have accounts with. They are complementary rather than competing, and many businesses offer both to reduce checkout friction.

	Stripe	PayPal
Best at	Custom checkout, subscriptions, platforms	Consumer familiarity and buyer trust
Integration	Developer-first, strong documentation	Simpler, less flexible
Customer needs an account	No	Often prefers one
Payout speed	Rolling, typically 2 days once established	Varies; instant to own balance
Dispute handling	Structured, evidence-based	Historically buyer-favourable
Freeze risk	Real, usually volume- or category-driven	Real, and widely complained about

Fee schedules and terms change often and vary by country. Check current provider pricing rather than any third-party summary, including this one.

The honest framing

Stripe is infrastructure. You build a checkout on it, and the quality of the developer experience is the reason most technical founders start there. PayPal is a payment method your customers may already trust, which matters most in consumer sales where an unfamiliar checkout costs conversions.

That is why the question is usually not "which one" but "do I need both". For consumer products, offering both is often worth the extra reconciliation work. For B2B invoicing, it usually is not.

What actually differs in practice

Reserves and payout schedules on new accounts — both apply them, and both shorten with history.
Dispute posture. PayPal has a long-standing reputation for favouring buyers; Stripe's process is more evidence-driven.
Currency conversion. Both take a margin on conversion, and for cross-border businesses this frequently exceeds the processing fee.

For the full stack including merchant of record options, see getting paid.

Frequently asked questions

Which is cheaper?: Headline rates are broadly comparable and both vary by country, card type and product. The differences that actually move the number are interchange mix, currency conversion margins and any reserve terms. Compare on your own transaction profile rather than on advertised rates.
Can a non-US resident use both with a US LLC?: Yes, given a US entity, an EIN and a US bank account to receive payouts. Both verify beneficial owners and may request additional documentation depending on industry and expected volume.
Should I offer both?: Often yes for consumer sales, because some buyers will only pay via PayPal and some will not use it at all. For B2B invoicing the case is weaker, and a single processor plus bank transfer is usually enough.

Sources

IRS — Understanding Your Form 1099-K

Last reviewed August 23, 2026. Verify against the primary source before acting.

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