Stripe vs PayPal? Choosing the wrong payment processor can silently destroy your margins — or worse, freeze your funds.
In 2026, Stripe and PayPal are still the two most used payment processors for dropshipping stores.
But they are very different in how they price risk, handle disputes, and treat dropshipping businesses.
Let’s break it down with real numbers, not marketing claims.
Basic Fee Comparison (2026)
Stripe Fees
- Card payments: 2.9% + €0.30
- International cards: +1%
- Currency conversion: +1%
- Chargeback fee: €15 (refundable if you win)
PayPal Fees
- Standard checkout: ~3.4% + €0.35
- International payments: +1.5%
- Currency conversion: ~3–4% hidden margin
- Chargeback fee: €20 (non-refundable)
Real Example: €100 Order
Stripe
- Processing: €2.90
- Fixed fee: €0.30
- Total: €3.20
- Net: €96.80
PayPal
- Processing: ~€3.40
- Fixed fee: €0.35
- Currency spread (average): ~€2.50
- Total: ~€6.25
- Net: €93.75
Result: PayPal can cost almost double on international orders.
Chargebacks & Risk
Stripe works well with branded stores, clear shipping policies, and EU or US suppliers.
It offers structured dispute handling and usually gives merchants time to respond.
PayPal is extremely buyer-friendly. Customers can open disputes easily and bypass your store completely.
Funds are often frozen during disputes, even if the case is unresolved.
Which One Is Better for Dropshipping?
Stripe is better if:
- You sell branded or private-label products
- You control fulfillment
- You want lower long-term fees
- You plan to scale
PayPal is better if:
- You need buyer trust for higher conversion rates
- You sell to less technical customers
- You accept higher fees as a tradeoff
Most serious stores use Stripe + PayPal together, with Stripe as the primary processor.
Hidden Costs Most Stores Ignore
- Refunds: Stripe does not return processing fees; PayPal often keeps refund fees.
- Account holds: Stripe may apply rolling reserves, while PayPal frequently freezes full balances.
What Kills Payment Accounts in 2026
- No business address
- No clear refund policy
- Long shipping times
- Poor customer communication
- Selling restricted products
The payment processor is rarely the problem — the business setup is.
Final Verdict
Stripe is cheaper, cleaner, and better for scaling.
PayPal is more expensive but increases buyer trust.
The best strategy in 2026 is to use Stripe as your main processor and offer PayPal as an additional option.
At Money Drip, payment safety is built into supplier selection, fulfillment speed, and store structure —
because scaling is impossible if your money is frozen.
Want to avoid payment freezes and hidden fees while scaling your store?
Money Drip is built for payment-safe dropshipping.