If you are looking for a Stripe alternative because the fees are too high, the obvious move is to sort providers by their headline percentage. That gives the wrong answer surprisingly often. A processing fee has two parts — a percentage and a fixed fee — and which one dominates depends on your ticket size. Below about $10, the 30¢ costs Stripe merchants more than the 2.9% does (here is why).
Fees at different ticket sizes
| Provider | $10 | $25 | $50 | $100 | $500 |
|---|---|---|---|---|---|
| Stripe (2.9% + 30¢) | $0.59 | $1.03 | $1.75 | $3.20 | $14.80 |
| Paydude (2.6% + 25¢) | $0.51 | $0.90 | $1.55 | $2.85 | $13.25 |
| Braintree (2.59% + 49¢) | $0.75 | $1.14 | $1.79 | $3.08 | $13.44 |
| PayPal (3.49% + 49¢) | $0.84 | $1.36 | $2.24 | $3.98 | $17.94 |
| Cash App for Business (2.75%) | $0.28 | $0.69 | $1.38 | $2.75 | $13.75 |
Three things stand out. Paydude is below Stripe in every column. Braintree only gets cheaper than Stripe somewhere between $50 and $100. And Cash App for Business, with no fixed fee, is the cheapest on small tickets — but it is a consumer-facing payment app, not an API you build a software business on.
What it adds up to over a year
| Monthly volume | Stripe per year | Paydude per year | Annual saving |
|---|---|---|---|
| $10,000 | $4,200 | $3,720 | $480 |
| $50,000 | $21,000 | $18,600 | $2,400 |
| $250,000 | $105,000 | $88,500 | $16,500 |
| $2,000,000 | $840,000 | $672,000 | $168,000 |
The gap widens with volume because Stripe's list price stays flat while Paydude's published rate steps down. At the top row, be realistic: a business processing $2M a month on Stripe can usually negotiate below list, so treat that saving as a ceiling rather than a promise.
The add-ons that change the answer
- Subscriptions. Stripe Billing costs 0.7% of billing volume on top of processing. On $50,000 a month of recurring revenue that is another $4,200 a year. Paydude charges +0% for subscriptions and invoicing — see Stripe alternatives for SaaS.
- Disputes. Stripe charges $15 per dispute. Paydude charges $12 for chargebacks, retrievals and reversals; Square charges none.
- Premium and Amex cards. Paydude adds 0.3% on premium rewards, corporate, business and Amex cards, which brings those payments level with Stripe's percentage (the 5¢ fixed-fee saving remains). If most of your customers pay with corporate cards, the percentage gap narrows.
- Monthly fees. Authorize.net charges $25 a month; Paydude has a $7 monthly minimum but no platform fee. Neither moves the needle much above a few thousand a month.
When a cheaper alternative is not cheaper
Paddle and Lemon Squeezy charge around 5% + 50¢, which looks like the most expensive option here. But as merchants of record they handle global sales tax and VAT. If you would otherwise pay for a tax service and spend hours on filings, they can cost less in total. Likewise, switching itself has a cost — engineering time and a migration — so a saving of a few hundred dollars a year may not be worth it. See how to switch from Stripe for what is involved.
Run it on your own numbers
Paydude vs Stripe, at your volume
Ticket size matters as much as volume: the fixed per-transaction fee is what makes small payments expensive.
- Stripe
- $10,2504.10%
- Paydude (Growing)
- $8,3753.35%
- Saved per month
- $1,875
- Stripe published rate: 2.9% + 30¢ for domestic cards.
- Paydude tier applied automatically by monthly volume.
- Excludes international, premium-card and dispute fees on both sides.
For the full field, including providers outside the Stripe comparison, see the best Stripe alternatives and the payment processor fee comparison.
GOOD QUESTIONS
Frequently asked
What is the cheapest alternative to Stripe?+
It depends on ticket size and volume. Among API-first processors with published rates, Paydude at 2.6% + 25¢ is cheaper than Stripe at every ticket size. Cash App for Business has no fixed fee, so it is cheapest on small tickets but is not built for software businesses. At high, debit-heavy volume, interchange-plus pricing can be cheapest of all.
How much would I save by switching from Stripe?+
At published rates and a $50 average ticket, moving from Stripe to Paydude saves about $480 a year at $10,000 a month, $2,400 at $50,000, and $16,500 at $250,000 a month, where Paydude's rate drops to 2.55% + 20¢. Subscription businesses also stop paying Stripe Billing's 0.7%.
Is Braintree cheaper than Stripe?+
Only on larger tickets. Braintree's 2.59% + 49¢ has a lower percentage but a higher fixed fee, so it costs more than Stripe below about $61 and less above it.
Can I just negotiate a lower rate with Stripe?+
Sometimes. Stripe does offer custom pricing, typically to businesses processing well into six figures a month or more. Below that, the list price is what most merchants pay. A published lower rate elsewhere is also useful leverage in that conversation.