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Which Payment Method Should A Dropshipper Choose: Stripe Or PayPal?

    When you start your dropshipping business or online store, you need to make sure that your customers have a safe way to pay. At the moment, Stripe and PayPal are the most popular online payment portals that make it easy to send money to your bank account.

    But how do you choose between Stripe and PayPal as a payment service? Which is the better option?

    In this article, we talk about the pros and cons of both ways of making payments.

    What can Stripe do for you?

    Stripe is one of the most popular online payment services. It lets your business send and receive money over the internet. In the world of e-commerce, this means that you can get paid right away by your customers. When a customer buys something, they can easily clear their payment using Stripe.

    One of the reasons why Stripe is so popular is that developers can change a lot of its features to match the look and feel of their website.

    What can PayPal do for you?

    Like Stripe, PayPal is a payment service that can be used to make online payments. It is also well-known for simple transactions between countries. They have millions of customers who regularly get money sent to or taken out of their bank accounts.

    Almost everyone has a PayPal account, which is a benefit of using PayPal as a payment gateway on your website. So, it’s easier to get paid through ecommerce or dropshipping when you use PayPal.

    Stripe vs PayPal: Let’s Compare

    Both Stripe and PayPal are good ways to accept payments, but which one is best for your dropshipping business? Let’s compare Stripe and PayPal to find out.


    Both Stripe and PayPal have clear ways to charge a usage fee. This is also why these payment portals are well-known in the business world.

    Every time you use Stripe or PayPal, you have to pay 2.9% plus 30. There are plans with no setup costs, monthly fees, or contracts.

    If you can meet the monthly sales minimum, you can easily lower your prices by using either of these two ways to get paid. For example, Stripe will lower your transaction fee if you sell USD 80,000 or more every month, while PayPal will do the same at just USD 3,000.

    When it comes to cost, the only way to choose between Stripe and PayPal is by how many transactions your business account does each month.

    Fee for Transaction

    RADAR’s transaction fee has changed. It’s a type of service fee that Stripe charges for every payment or transaction that comes from your website. Even if your transaction fails, you still have to pay this.05 fee.

    In your dropshipping store, for example, a customer has placed an order and paid for it with a credit card. But they used the wrong date, so the transaction couldn’t go through. Even so, you still have to pay the RADAR fee.

    When you use a standard Stripe account, this fee is taken care of for you, so you don’t have to worry about it.

    It’s amazing that PayPal doesn’t have this RADAR charge, so if you use the PayPal payment portal, you can save money on the total price.


    Sometimes a customer doesn’t agree with a transaction and tells their bank about it. Based on this complaint, the bank might think it’s a scam and look into what’s going on. A chargeback is put on your account if the bank takes the money back. This is done to protect the customer’s rights. You have to pay this chargeback and the processing fee that was already added to the transaction.

    Stripe charges USD 15 for a chargeback, and PayPal charges USD 20.

    If the customer or cardholder uses this service too much, it can be hard on your business (and hurt it) because you have to pay the above fee every time there is a chargeback.

    Help for customers

    When it comes to customer service, both Stripe and PayPal are great choices.

    Customers can reach Stripe’s support center in different ways, such as through chat support, social media, email support, or phone calls. You can also go to the website and look at the Frequently Asked Questions (FAQs) and help center pages to find a solution.

    In the same way, there are many ways to contact customer service at PayPal. You can use the community forum, social media, the help center, live chat, email, or the phone to get help. All of these methods are pretty quick, so choose one based on how important and urgent the problem is.

    PayPal has a set time for a response, no matter how easy it is to reach customer service. Stripe works all the time, but they don’t. They just recently said that customers can now call or chat with Stripe support staff 24 hours a day, 7 days a week.

    Simple to Use

    Stripe and PayPal can’t be beat when it comes to how easy they are to use. Both payment portals are checked carefully to make them easier to use. So, anyone who runs a dropshipping business can offer customers an easy way to pay with Stripe or PayPal.


    Stripe and PayPal both follow the Payment Card Industry Data Security Standard, which was made for all companies that accept online payments. PayPal and Stripe are the best options for customers who want to pay or buy something online with a credit card or other method. They make it safe for money to move from the customer’s account to the account of the business owner.


    When it comes to setting up Stripe vs. PayPal, Stripe has more options for customization than PayPal. You can add and connect different features on Stripe. But this also means that Stripe needs some technical knowledge in order to add features like Pay with Card. You need to know about coding and development, which can be hard for business owners who don’t understand coding.

    Using WPForms, which is already set up for both Stripe and PayPal, is one way to solve this problem. You can add features to your Stripe or PayPal payment portal using these setups.


    Both Shopify and WordPress can integrate with Stripe and PayPal. You can also find more information about how they work together on their websites.

    If you use a trusted ecommerce website platform, you may have the option to use both Stripe and PayPal.

    Data Portability

    Some dropshipping business owners choose to switch their payment processors to a different company. In that case, you need a feature that lets you move your data.

    Stripe respects your choice and helps you move your information to another company in a way that is PCI-compliant. But PayPal doesn’t let you move your data. If you decide to switch from PayPal to another processor, it will be a nightmare because you won’t be able to move your data without problems.

    Which One Is Better

    In this comparison of Stripe and PayPal, which one did you end up liking better?

    The answer is simple: it depends on what you need for ecommerce. Depending on your industry, website hosting, what you offer customers, how often you do business, how much you sell each month, etc. You can choose the right type of payment portal for your business based on all of these things.

    Because of this, it’s important to make a list of the pros and cons of both PayPal and Stripe before coming to a decision. This list will help you understand things better.

    Read what was said above to find the best payment portal for your business.

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