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What PayPal actually costs you
Three charges stack on a cross-border payment: the commercial rate, the international surcharge, and the conversion spread. Put your numbers in and see the total.
Based on published rates checked on 2026-08-07: PayPal commercial 3.49% + $0.49, international +1.5%, conversion 4%. Stripe standard US online card rate 2.9% + $0.3. Rates change and vary by product and country. This is an estimate, not a quote.
Where the difference comes from
A US seller paid in dollars by US customers pays one card rate. Someone outside the US being paid by the same customers pays that rate, plus a surcharge because the buyer is in a different country, plus a spread because the money has to become local currency. A US LLC with a US business account and a US Stripe account removes the second charge and lets you decide when to pay the third, because you can hold the dollars.
It does not make you exempt from tax. A foreign-owned single-member LLC is a pass-through, so the company is generally not taxed itself, but whether you owe US tax depends on whether your income is effectively connected with a US trade or business, and every foreign-owned single-member LLC must file Form 5472 each year with a $25,000 penalty for missing it. Read US tax obligations for foreign-owned LLCs before assuming anything about your own position.
Form your US LLC for $399
All state fees included, with registered agent and your federal tax number. Then open a US business account and take card payments in dollars.
Get startedFrequently asked questions
How much does PayPal charge to receive international payments?
On PayPal's published rates a commercial transaction is 3.49% plus a fixed fee, with an extra 1.5% when the buyer is in another country. If you then convert to your local currency, PayPal applies a spread of about 4%. Together that is close to 9% of the payment before the money reaches your bank.
Why is PayPal more expensive for people outside the US?
Two charges stack that a domestic seller never sees. The international surcharge applies because the buyer is in a different country from your account, and the conversion spread applies because your balance arrives in one currency and your bank holds another. A US seller paid in USD by US customers avoids both.
Is Stripe cheaper than PayPal?
For card payments in the same currency, yes. Stripe's standard US online rate is 2.9% plus a fixed fee against PayPal's 3.49% plus fixed, and Stripe does not add an international surcharge when a US business is paid in USD. The bigger difference is conversion: holding dollars in a US account means you convert when you choose, not on every payment.
Do I need a US LLC to use Stripe?
Stripe operates in many countries and you may be able to use it locally. A US LLC matters when Stripe does not support your country, or when being paid as a US business in USD removes the international surcharge and the forced conversion.
Does a US LLC mean I pay no tax?
No, and be careful with anyone who tells you it does. A foreign-owned single-member LLC is a pass-through, so the company itself is generally not taxed, but whether you owe US tax depends on whether your income is effectively connected with a US trade or business, which is fact-specific. Separately, every foreign-owned single-member LLC must file Form 5472 each year and the penalty for missing it is $25,000. Your home country will also tax the income under its own rules. Take advice on your own situation.