✦ 4 Processors · Updated June 2026 · Free Tool
Which payment processor keeps
the most for you?
Compare Stripe, Venmo, PayPal, and Wise — enter any amount and see exactly what you receive for domestic payments, invoices, and international transfers. No signup required.
⚠️ Updated June 2026: Stripe Billing fee raised from 0.5% → 0.7% and $15 dispute counter fee added (June 2025). Venmo 1099-K threshold is $20,000 + 200 transactions (One Big Beautiful Bill Act, July 2025). All standard processing fees unchanged.
4
Processors compared
2.9%
Stripe domestic card rate
$0
Wise receive via bank transfer
~1%
Wise international (vs PayPal's ~8%)
$
US client pays a US freelancer via card, app payment (Venmo), or bank transfer.
* Wise domestic assumes client pays via local USD bank transfer to your Wise routing number — no card processing. · PayPal international fee excludes currency conversion markup (~3–4% additional). · Wise international uses ~1% as a representative rate; exact fee depends on currency pair (range: 0.5–2%).
Quick overview of each processor's fee model, strengths, and caveats. Click any card for its dedicated calculator.
StripeBest for invoicing
2.9% + $0.30
Per online card transaction
- ✓ Lowest fixed fee ($0.30) of major processors
- ✓ ACH Direct Debit: 0.8%, cap $5
- ✓ Automated invoicing, subscriptions, billing
- ✓ International: + 1.5% surcharge
- ✗ $15 dispute counter fee (June 2025)
- ✗ No consumer app — client must enter card
VenmoUS domestic only
2.99%
G&S · Personal account (no fixed fee)
- ✓ No fixed fee — cheaper than Stripe for <$333
- ✓ Business profile: 1.9% + $0.10 (better above $10)
- ✓ Clients already have the app — zero friction
- ✓ Standard transfer free (1–3 days)
- ✗ US recipients only — no international clients
- ✗ No invoice feature · 1099-K above $20K threshold
PayPalCalculator coming soon
2.99% + $0.49
G&S · Invoice: 3.49% + $0.49
- ✓ Worldwide brand — clients everywhere know it
- ✓ Easy for one-time clients, no app required
- ✓ QR code: 2.29% + $0.09 (lowest rate)
- ✗ Fixed fee ($0.49) stings on small amounts
- ✗ International: +3–4% FX markup on top of stated fee
- ✗ Account freeze risk with unusual payment volume
WiseBest for international
~0.5–2%
Variable by currency pair · No FX markup
- ✓ Mid-market exchange rate — no hidden FX markup
- ✓ Receive USD free via local routing number
- ✓ USD→GBP: ~0.67% · USD→EUR: ~0.60%
- ✓ Cheapest option for international client payments
- ✗ Bank transfer only — client cannot pay by card
- ✗ 1–2 day transfer time (not instant)
Complete fee schedule for all four processors — verified from official pricing pages, June 2026.
| Payment type | ⚡ Stripe | 💸 Venmo | 💳 PayPal | 🌐 Wise |
|---|---|---|---|---|
| Domestic G&S (card) | 2.9% + $0.30 | 2.99% | 2.99% + $0.49 | Free (bank transfer) |
| Invoice | 2.9% + $0.30 | N/A | 3.49% + $0.49 | N/A |
| ACH / bank transfer | 0.8% (cap $5) | Free (standard) | Free (from bank) | Free (receive) |
| International surcharge | +1.5% | US-only | +1.5% cross-border | Included in % |
| Currency conversion (FX) | +1.0% | US-only | +3–4% markup | 0% (mid-market rate) |
| Instant payout | 1.5% (min $0.50) | 1.75% (min $0.25, max $25) | 1.5% (min $0.25, max $15) | ~1–2 days standard |
| Dispute / chargeback | $15 counter fee | N/A (G&S protected) | $20 dispute fee | N/A |
| Subscription billing | +0.7% (Billing plan) | N/A | N/A | N/A |
| Business profile / rate | N/A (card only) | 1.9% + $0.10 (Business) | 2.99% + $0.49 (same) | Variable by pair |
| QR code payment | N/A | 2.29% + $0.09 (Tap to Pay) | 2.29% + $0.09 | N/A |
All fees verified from official processor pricing pages, June 2026. Fees can change — click any processor's full calculator for the most current data. PayPal currency conversion markup (3–4%) is separate from the stated cross-border fee and applies whenever a currency conversion occurs.
Individual Payment Fee Calculators
Each processor has a dedicated calculator with full fee breakdowns, reverse calculator, and payment-type-specific tools.
Stripe Fee Calculator
2.9% + $0.30 per card transaction
Card payments · ACH Direct Debit · Billing add-on · Reverse calculator · International toggle
Venmo Fee Calculator
2.99% G&S · 1.9% + $0.10 Business
G&S payments · Instant transfer · Business profile · Reverse calculator · 1099-K notes
PayPal Fee Calculator Coming soon
2.99% + $0.49 G&S · 3.49% + $0.49 Invoice
Full PayPal fee breakdown including cross-border surcharge and currency conversion
Wise Transfer Fee Calculator Coming soon
~0.5–2% variable · mid-market rate
International transfer fees by currency pair · vs PayPal comparison · exact quote tool
How payment processing fees work
When a client pays you, the payment processor deducts its fee before the money reaches your account. Understanding how fees stack helps you price correctly and choose the right tool for each payment type.
The fee stacking problem
Most processors charge a percentage fee, a fixed fee, or both. But for international payments, a second layer of fees appears — the currency conversion markup. This is the hidden cost that makes PayPal significantly more expensive than it appears.
PayPal international example on a $2,000 payment: The stated fee (2.99% + 1.5% cross-border + $0.49) costs approximately $99.49. But PayPal also converts currency at a rate 3–4% worse than the mid-market rate, adding another ~$60–80 in hidden conversion cost. Total: $160+, or an effective rate of 8%+.
Wise international example on the same $2,000 payment: ~1% variable fee + small fixed amount ≈ $20–25 total. Wise uses the mid-market rate with zero markup. Savings vs PayPal: approximately $135 per transaction.
Domestic payments: card vs bank transfer
For US-to-US freelance payments, the key decision is card vs bank transfer. Card payments (Stripe, PayPal, Venmo G&S) are convenient for clients but carry higher fees — 2.9–3.5% per transaction. Bank transfers to your Wise USD account are free to receive. ACH via Stripe costs 0.8% capped at $5 — significantly cheaper for large invoices.
Break-even point: Venmo (2.99%, no fixed fee) is cheaper than Stripe (2.9% + $0.30) for amounts under $333. Above $333, Stripe's lower percentage wins. PayPal (2.99% + $0.49) is consistently the most expensive card/app option for domestic payments.
Which payment processor should you use?
The right tool depends on how your client wants to pay and whether they're domestic or international.
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US client, paying by card. Stripe at 2.9% + $0.30 is the standard choice — professional, reliable, and supports automated invoicing. For smaller amounts (under $333), Venmo's 2.99% flat rate is marginally cheaper. Both are significantly better than PayPal's 2.99% + $0.49 fixed fee.
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US client, paying by app. Venmo is the easiest choice if your client already has it — no card details required. Use a Business Profile (1.9% + $0.10) for regular payments above $10 to save on fees vs the personal G&S rate (2.99%). Note: payments above $20,000 + 200 transactions trigger a 1099-K.
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International client. Wise is the clear winner for cross-border payments — mid-market exchange rate, no FX markup, and transparent ~0.5–2% fee depending on the currency pair. Ask your client to bank-transfer to your Wise USD account (you'll have a US routing number and account number they can use like any bank). On a $2,000 invoice, Wise saves approximately $135 vs PayPal.
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Client insists on PayPal. Accept it — PayPal is widely trusted and sometimes non-negotiable. Factor the full fee cost into your pricing: for domestic payments, add ~3.5% to your invoice amount; for international payments, add 7–9% to cover the full effective cost including FX markup. Use our PayPal fee calculator (coming soon) to get the exact gross amount to quote.
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Recurring clients and subscriptions. Stripe Billing (+ 0.7% on top of card fee) is the only option here — automated recurring charges, smart retries, and payment method management. No other processor on this list supports true subscription billing. The 0.7% Billing add-on is paid by the freelancer, but the time saved on manual invoicing typically outweighs the cost for high-volume recurring work.
💡 Tax tip: All payment processing fees are deductible business expenses in the US (Schedule C). Track them monthly — Stripe, Venmo, PayPal, and Wise all export monthly fee statements.
Frequently asked questions
What is the cheapest payment processor for freelancers?
For domestic US payments, Wise is cheapest — receiving via local bank transfer to your Wise USD account is free. For card payments, Venmo (2.99%, no fixed fee) beats Stripe (2.9% + $0.30) on amounts under $333; Stripe is cheaper above that. For international clients, Wise wins by a wide margin: approximately 1% variable vs PayPal's effective 7–9% total cost including currency conversion markup.
Can I use Venmo to receive freelance client payments?
Yes — Venmo's Goods and Services (G&S) feature is designed for business transactions. Personal accounts pay 2.99% per transaction; Business profiles pay 1.9% + $0.10 (cheaper for payments above $10). Key limitations: Venmo is US-only, there is no invoice feature, and you will receive a 1099-K if payments exceed $20,000 + 200 transactions in a year (federal threshold, reinstated July 2025).
Is PayPal good for international freelance payments?
PayPal works internationally and is widely recognised by clients globally, but it is one of the most expensive options for cross-border payments. The stated fee (2.99% + 1.5% cross-border surcharge) is only part of the cost — PayPal also adds a 3–4% markup to the exchange rate. On a $2,000 international payment, the total effective cost can reach $130–$160. Wise costs approximately $20 for the same transaction.
How does Wise compare to PayPal for receiving international payments?
Wise uses the mid-market exchange rate with a small transparent variable fee (typically 0.5–2% depending on the currency pair), while PayPal applies a 3–4% markup to the exchange rate on top of its stated cross-border fee. On a $2,000 USD payment converted to GBP, Wise costs approximately $20 (1%) while PayPal can cost $130+. Wise also lets you receive USD for free via a US local routing number — clients pay as if sending to a US bank account.
Are payment processing fees tax deductible for freelancers?
Yes — payment processing fees are 100% tax deductible as ordinary business expenses for self-employed freelancers in the US. Deduct them on Schedule C under "Commissions and fees" or "Other expenses." This applies to Stripe fees, Venmo business fees, PayPal fees, and Wise transfer fees. Keep monthly processor fee statements as documentation.
What is a 1099-K and which payment platforms send one?
A 1099-K is a US tax form reporting payments processed through third-party networks. The federal threshold for 2025 onwards is $20,000 and 200 transactions (reinstated by the One Big Beautiful Bill Act, July 2025) — some states have lower thresholds. Venmo and PayPal both issue 1099-Ks when you exceed the threshold. Stripe issues a 1099-K for card payments through its platform. Wise typically does not issue a 1099-K as it operates as a money transfer service rather than a payment settlement network — consult a tax professional about reporting Wise income.