E-commerce in the United States has experienced remarkable growth in recent years. In 2023, online sales exceeded $1.11 trillion, representing a 7.6% increase over the previous year.
Online retail sales in the US are projected to reach $1.2 trillion by 2025.
This sustained growth offers significant opportunities for entrepreneurs and merchants looking to expand their businesses into the US market.
When considering expanding into e-commerce in the United States, it is crucial to understand the fees associated with the most commonly used payment platforms, such as PayPal and Stripe. Below, we detail the fees that these platforms charge for receiving online payments in the United States.
PayPal fees for receiving online payments in the United States
PayPal is one of the most recognized payment platforms worldwide, used by millions of businesses and consumers. For commercial accounts in the United States, PayPal applies the following fees per transaction:
- Fee per domestic transaction: 2.9% of the total transaction amount plus a fixed fee of $0.30 USD.
- Commission for international transactions: 4.4% of the total amount of the transaction plus a fixed fee that varies according to the currency used.
- Currency conversion: If the transaction involves a currency conversion, PayPal applies an additional commission that is usually a percentage of the current exchange rate.
It is important to note that these fees may vary depending on the type of account and the volume of monthly transactions. In addition, PayPal offers special rates for micropayments and non-profit organizations.
Stripe fees for receiving online payments in the United States
Stripe has positioned itself as a popular alternative for processing online payments, especially among developers and startups due to its flexibility and ease of integration. Stripe’s standard fees in the United States are as follows:
- Fee per domestic card transaction: 2.9% of the total transaction amount plus a fixed fee of $0.30 USD.
- Fee per international card transaction: In addition to the standard fee, an additional 1.5% is added for transactions with cards issued outside the United States.
- Fee for manual card entry: If card details are entered manually instead of using a card reader or online integration, an additional 0.5% is added.
Like PayPal, Stripe may apply additional fees for services such as currency conversion or payment disputes. However, Stripe does not charge monthly fees or setup costs, which can be beneficial for businesses just starting out.
Additional considerations when choosing a payment platform
When selecting a platform to process online payments, it is essential to consider various factors beyond transaction fees:
- Integration and customization: Stripe offers extensive customization and integration options, which can be advantageous for businesses with specific development needs.
- International reach: PayPal is widely recognized and used globally, which can facilitate international sales.
- User experience: The ease of use and the trust that customers place in the platform can influence sales conversion rates.
- Support and resources: Both platforms offer resources and support, but it is advisable to evaluate which one best suits the specific needs of your business.
Conclusion
E-commerce in the United States presents lucrative opportunities for entrepreneurs and merchants from all over the world. Understanding the fees associated with payment platforms such as PayPal and Stripe is critical to optimizing costs and maximizing profits. When evaluating each option, consider not only the transaction fees, but also how each platform aligns with the specific needs and objectives of your business.