Stripe vs PayPal: fees, checkout experience, account risk and who can open each from Egypt or the Gulf
Stripe and PayPal compared for a US LLC selling abroad: published US rates as of 27 September 2026, worked fee examples, the currency-conversion gap, checkout differences, account-hold risk, and which one a founder in Egypt, Saudi Arabia or the UAE can actually open.
The short answer
Stripe and PayPal are both payment processors: they move the buyer's money to you, and you remain the seller responsible for tax, refunds and disputes. Stripe suits a business that wants a card checkout it controls, subscriptions, and a set of connected tools. PayPal suits a business whose buyers expect to see the PayPal button, or that sells to people who would rather not type a card number on an unfamiliar site.
On US account rates as published on 27 September 2026, a $100 sale paid with a US card costs $3.20 on Stripe and $3.98 through PayPal Checkout. When the buyer's card is issued abroad and the buyer pays in another currency, the fee is $5.70 on Stripe against $8.48 on PayPal, mostly because of how each converts currency.
The deciding factor is usually not the rate but access. Stripe does not open accounts for businesses registered in Egypt or Saudi Arabia, and PayPal accounts in Egypt come with limits on receiving and withdrawing. For a founder in either country, the question is often which one a US company can open, and whether to run both.
How they differ at a glance
A merchant of record is the business that legally sells to the buyer and carries the duty to collect sales tax or VAT, handle refunds and answer chargebacks. With both Stripe and PayPal, that business is you.
| Stripe | PayPal | |
|---|---|---|
| Type | Payment processor; you are the merchant of record | Payment processor; you are the merchant of record |
| Standard rate (US account) | 2.9% + $0.30 online card | 3.49% + $0.49 PayPal Checkout; 2.99% + $0.49 standard card processing |
| International cards | +1.5% | +1.5% |
| Currency conversion | +1% | Built into the exchange rate, roughly 3–4% above the base rate |
| Subscriptions | Stripe Billing, +0.7% | No separate surcharge in the rates we model |
| Sales tax / VAT | You; Stripe Tax can calculate it for 0.5% where you are registered | You |
| Disputes | $15, plus $15 if you counter; refunded if you win | Chargeback fee set per currency; waived under Seller Protection |
| Payouts | Standard free; Instant Payouts 1.5% (min $0.50) | Standard bank transfer free; instant transfer 1.75% (max $25) |
| Monthly fee | None | None on the standard account |
| Who can open | Businesses registered in a supported country; UAE yes, Egypt and Saudi Arabia no | Personal and business accounts in Egypt with limits; a US LLC can apply for a US Business account |
Fees on the same sale
These examples use each provider's standard US method: Stripe's online card rate and PayPal Checkout (the PayPal button). "Intl" means a card issued outside the US; "+ FX" means the buyer pays in another currency and the processor converts it.
| Scenario | Stripe | PayPal |
|---|---|---|
| $100 US card | fee $3.20 / net $96.80 | fee $3.98 / net $96.02 |
| $100 intl card | fee $4.70 / net $95.30 | fee $5.48 / net $94.52 |
| $100 intl card + FX | fee $5.70 / net $94.30 | fee $8.48 / net $91.52 |
| $100 intl subscription | fee $5.40 / net $94.60 | fee $5.48 / net $94.52 |
| $29 US subscription | fee $1.34 / net $27.66 | fee $1.50 / net $27.50 |
| $29 intl subscription | fee $1.78 / net $27.22 | fee $1.94 / net $27.06 |
| $1000 intl card | fee $44.30 / net $955.70 | fee $50.39 / net $949.61 |
| Charge needed to net $100 (US card) | $103.30 | $104.12 |
Two things drive the gap. The first is the base rate: PayPal Checkout charges 3.49% + $0.49 against Stripe's 2.9% + $0.30, so PayPal costs more on every sale, and the fixed $0.49 weighs more on small tickets. The second is currency conversion. Stripe adds a stated 1%, while PayPal builds its margin into the exchange rate it applies, roughly 3–4% above the base rate (our model uses 3%). That spread does not appear as a separate line, which is why the "+ FX" row shows the widest difference: $2.78 on a $100 sale.
The gap narrows on subscriptions, because Stripe Billing adds 0.7% and our PayPal figures carry no subscription surcharge: $5.40 against $5.48 on a $100 international subscription. PayPal's advanced (unbranded) card processing, at 2.89% + $0.29, is priced close to Stripe, but it is a separate card product rather than the PayPal button. To test your own prices, use the Stripe fee calculator, the PayPal fee calculator, or the all-gateways fee comparison.
Stripe in practice
Stripe is a card-first processor. Its hosted checkout and payment forms ask the buyer for card details on a page styled for your business, and the rest of its products sit around that payment: Billing for subscriptions and invoices, Tax for calculating sales tax and VAT where you are registered, and payouts to your bank account. Many e-commerce and software platforms connect to it directly, which is often the practical reason sellers choose it.
It charges per successful payment on its pricing page: 2.9% + $0.30 for an online card on a US account, 3.4% + $0.30 for a manually entered card, and ACH Direct Debit at 0.8% capped at $5. International cards add 1.5%, conversion adds 1%, and there is no monthly fee. Stripe does not return the processing fee when you refund a sale. A dispute costs $15, with a further $15 if you counter it, and Stripe's dispute fees FAQ explains when the fee is refunded after a win.
Its limits are about eligibility and risk. Stripe reviews every account, publishes a list of prohibited and restricted businesses, and, like any processor that carries the risk of your refunds and chargebacks, can hold funds or restrict an account under its terms. A clear website, accurate product descriptions and a visible refund policy reduce the chance of questions during review, but they do not guarantee an outcome.
PayPal in practice
PayPal is a processor with a consumer wallet attached. Buyers who already hold a PayPal account can pay without entering card details, and PayPal's buyer protection is a reason some of them look for the button. For a small or unfamiliar store, offering PayPal can remove a reason to abandon the checkout. Whether it lifts your conversion depends on your buyers; test it rather than assume it.
The PayPal button costs 3.49% + $0.49 on a US account, as published on PayPal's US business fees page on 27 September 2026. Standard card processing is 2.99% + $0.49 and advanced card processing is 2.89% + $0.29; Venmo and Invoicing are 3.49% + $0.49. International payments add 1.5%. The chargeback fee is set per currency and waived when Seller Protection covers the transaction. Standard withdrawals to a bank are free; an instant transfer costs 1.75%, up to $25.
The costs that surprise sellers most are the conversion spread and account restrictions. Conversion is not listed as a percentage on your invoice; it is inside the rate. And PayPal, like Stripe, can hold balances or limit an account under its terms, which matters more when PayPal is your only way of getting paid. Sellers who depend on one processor feel any hold on it as a stop to all revenue.
Who can use each one from Egypt or the Gulf
Stripe. As of 27 September 2026, Stripe's supported-countries list includes the UAE and does not include Egypt or Saudi Arabia. The list is about where the business is registered, not where the founder lives or where customers are. A UAE-licensed business can apply for a UAE Stripe account. A founder in Egypt or Saudi Arabia usually applies through a company registered in a supported country; a US LLC can apply for a US Stripe account under Stripe's US account requirements. For the full country picture, read whether Stripe is available in Egypt, Saudi Arabia and the UAE.
PayPal. PayPal operates personal and business accounts in Egypt, with limits on receiving and withdrawing, and the Egypt merchant fees page sets its own rates. PayPal in Egypt covers how withdrawals work there. For Saudi Arabia, the UAE and other Gulf countries, check PayPal's countries page and that country's own fee page; we do not summarise them here. A US LLC can apply for a US PayPal Business account at the US rates in this article.
A US LLC opens the US-priced accounts described above for both providers. Foundlie forms the US LLC and prepares the documents these applications ask for; Stripe and PayPal each decide after their own review, and neither approval is guaranteed.
Which one to choose
Choose Stripe if:
- most of your buyers pay by card and you want the lower rate ($3.20 against $3.98 on a $100 US card sale);
- you sell to buyers abroad in their own currency, where Stripe's stated 1% conversion is cheaper than a spread built into the rate;
- you need subscriptions, invoices, tax calculation or a platform integration in one account.
Choose PayPal if:
- your buyers ask for PayPal or already pay with a PayPal balance;
- you sell to consumers on a new or small store, where a familiar button may reduce hesitation;
- you need a way to get paid while your Stripe application is under review, and you accept the higher fee.
Use both if you can manage two dashboards. A common setup is Stripe as the main card checkout with PayPal offered as a second button. It gives buyers a choice and means a hold on one account does not stop all incoming payments. Reconcile both against your books each month.
Frequently asked questions
Which is cheaper for a $100 sale from a US card?
Stripe. At the rates published on 27 September 2026, Stripe's fee is $3.20 (net $96.80) and PayPal Checkout's is $3.98 (net $96.02). PayPal's advanced card processing is priced closer to Stripe at 2.89% + $0.29, but that is a card product, not the PayPal button.
Which is cheaper when an international buyer pays in their own currency?
Stripe, by a wider margin: $5.70 against $8.48 on a $100 sale in our examples. Stripe adds 1% for conversion; PayPal builds roughly 3–4% into its exchange rate.
Can I use Stripe or PayPal without a US company?
For Stripe, only if your business is registered in a supported country such as the UAE; there is no Stripe account for a business registered in Egypt or Saudi Arabia. PayPal offers accounts in Egypt, with limits on receiving and withdrawing, so you can use PayPal without a US company there, but not at US rates or with a US Business account.
Does either one handle sales tax or VAT for me?
No. Both are processors, so you remain the merchant of record. Stripe Tax can calculate tax for 0.5% where you are registered, but registering and filing stay with you.
Should I offer both at checkout?
It often makes sense. PayPal covers buyers who prefer it, Stripe keeps card fees lower, and two processors reduce the effect of a hold on either one. The cost is more reconciliation work and two sets of dispute rules.
What comes next
- Read accepting payments from abroad for what a US company changes about Stripe and PayPal applications, and which decisions stay with the providers.
- Run your own prices through the Stripe fee calculator and the PayPal fee calculator, or compare every gateway at once in the payment gateway fee comparison.
- If multi-currency balances matter to you, read Stripe vs Airwallex and PayPal vs Airwallex.
- Check country rules before you apply: is Stripe available in Egypt, Saudi Arabia and the UAE and PayPal in Egypt: withdrawals, fees and limits.