As of 1 June 2023, Stripe is making pricing changes for you and/or your connected accounts. We wanted to let you know in advance before we notify your connected accounts, which we will begin doing on 7 March 2023.
International card fees for US businesses on standard pricing
Network token fees for businesses on custom interchange pricing
How can I calculate the impact that these fee changes will have on my business?
How will I know if a customer is using an international card?
For businesses based in the United States, any card that is issued by a bank outside of the United States is considered to be an international card.
Over the past few years, card networks have increased the total fees that Stripe pays for card processing. As a result of these costs, Stripe's additional fee for international card transactions will change from 1.0% to 1.5% from 1 June. There's no change to our standard 2.9% + US$0.30 pricing for US card transactions.
How to reduce costs and grow globally
In many countries, customers prefer to pay with their bank, digital wallet or other non-card methods, which may be cheaper than cards. Stripe makes it easy for you to accept more than 25 payment methods using Checkout, the Payment Element or with the API. What's more, you can choose the most effective payment methods for your business.
Our checkout experiences automatically show your customers the most relevant payment methods based on local preferences, and are tailored to more than 30 languages and over 135 currencies across web and mobile.
Whether you win or lose a dispute, card networks charge Stripe a fee in either case. To cover these costs, from 1 June, Stripe will no longer return the US$15 dispute fee for successfully contested disputes. The dispute fee itself is not changing
How to prevent chargebacks and win more disputes
Stripe Radar uses machine learning to help prevent fraudulent charges. Radar is typically a paid product, but it's free for users such as yourself who are on our standard pricing.
We now recommend what to submit by analysing millions of disputes, so you can fight the right ones with the best evidence.
Network tokens update payment details automatically when old cards expire. This means that your customers don't need to re-enter anything and you capture more revenue. We've automatically turned on network tokens for you and your connected accounts so that you can benefit from this feature. However, because Stripe incurs costs to create and maintain tokens on your behalf, as of 15 June, Stripe will charge a fee for each newly provisioned network token, in line with current pricing. You can turn off network tokens from the Dashboard if you prefer.
Learn more about the change and how network tokens increase revenue by an average of 0.4%.
Card account updater helps ensure that you always have the latest card information on file, including when network tokens aren't yet supported by a customer's bank. Card account updater has been a paid product since it was first introduced. As of 1 September, all businesses on custom pricing and which use card account updater will be charged for each card update in line with current pricing.
Learn more about how card account updater increases revenue by an average of 0.6%.
Certain US states and Canadian provinces require us to collect sales tax on certain Stripe products. As of 1 June, we'll begin collecting sales tax (where applicable) based on your business location, which you can review in the Dashboard. Payment processing fees are generally not subject to sales tax. Learn more.
If you have a high volume of international card transactions, you can enable bank, digital wallet or other non-card payment methods, which may be cheaper than cards, using either Checkout or the Payment Element, or through the API. Below are a few payment methods that might be relevant:
Bank redirects can be used to process large, one-off transactions (fee varies by payment method)
SEPA Direct Debit can be used for EU-based recurring payments for 0.8% + US30¢ per transaction
Stripe helps you automatically prevent chargebacks and win more disputes with Stripe Radar and ongoing improvements to the disputes process. You can also help reduce disputes by doing things such as communicating your policies more clearly to your customers and improving your Stripe integration. You can read more about how to prevent disputes here.
International card fees: Over the past few years, card networks have increased the total fees that Stripe pays for card processing. As a result of these costs, Stripe's additional fee for international card transactions will change from 1.0% to 1.5% from 1 June.
Disputes: Whether you win or lose a dispute, card networks charge Stripe a fee in both cases. These costs have increased due to the introduction of several new fees from the card networks and increases in existing fees. To cover these costs, from 1 June, Stripe will no longer return the US$15 dispute fee for successfully contested disputes.
Network tokens: Stripe incurs costs to create and maintain network tokens on behalf of you and your connected accounts. To cover these costs, Stripe will charge a fee for each newly provisioned network token from 15 June onwards.
Card account updater: Our fees for card account updater are not changing. However, from 1 September, some early users who currently benefit from special pricing for card account updater will be charged in line with current pricing to ensure consistency.
The best way to calculate the impact that these changes might have on your business is to use the Stripe Dashboard.
To understand the impact of changes in pricing for international cards:
Go to the Reports section of your Dashboard
Click on "Download" located in the top-right corner of the "Balance change from activity" module
Export your activity to a .CSV file and ensure that "Card country" is selected as a column
From 1 June 2023, all transactions where the "Card country" is not the US would be subject to the new fees.
To understand the impact of changes in disputes pricing:
Go to the Payments section of your Dashboard
Click on "Disputes" on the side panel at the top left
Double-click on "won" disputes
Export your activity to a .CSV file
From 1 June 2023, all of these transactions will be subject to the pricing changes.
You can read more about how to download tax, VAT or GST invoices for Stripe fees on our Support page.
For businesses based in the United States, any card that is issued by a bank outside of the United States is considered to be an international card.
The best way to understand which customers and transactions are using an international card is to use the Stripe Dashboard. To see the number of transactions with international cards:
Go to the Reports section of your Dashboard
Click on "Download" located in the top-right corner of the "Balance change from activity" module
Export your activity to a .CSV file and ensure that "Card country" is selected as a column
All transactions where the "Card country" is not the US would be affected by the change in pricing for international cards
Stripe helps you automatically prevent chargebacks and win more disputes with Stripe Radar and ongoing improvements. In addition, you can take many steps to reduce your disputes costs by decreasing the number of disputes incurred by your business. These include things such as:
Communicating clearly and effectively to your customers (e.g. using clear statement descriptors)
Improving your Stripe integration (e.g. shipping to a verified address only)
Identifying common fraud indicators and how to get around them (e.g. fake phone numbers or email addresses)
Using advanced tools to prevent fraud (e.g. Radar for Fraud Teams)
You can read more about how to prevent disputes in our docs
By law, Stripe is required to charge US sales tax on certain products and services. Your business address will determine whether the products and services that you purchase are subject to US state and local taxes, as well as the applicable tax rates.
In Canada, Stripe is registered for GST/ HST, as well as PST in British Columbia, Saskatchewan and Manitoba. Your business address will determine whether the products and services you purchase are subject to GST/ HST/ PST, and the applicable tax rates.
Learn more about Stripe's tax policies for the US and Canada.
In the US, the taxability of products and services varies greatly depending on the location. Payment processing services are not generally subject to US sales tax. Certain software-as-a-service ("SaaS") products, which include revenue products such as Billing, fraud prevention products such as Radar, reporting products such as Tax and analytics products such as Sigma, are generally subject to US sales tax, depending on the state.
In Canada, certain software-as-a-service (SaaS) products, which include revenue products such as Billing, fraud prevention products such as Radar, reporting products such as Tax and analytics products such as Sigma, are subject to GST/HST and PST in certain provinces.
For Stripe to charge tax accurately, please ensure that your business address is up to date in your Dashboard, under Business settings.
Learn more about Stripe's tax policies for the US and Canada.
If you use Connect with Standard accounts, these changes will apply to the Stripe fees for your connected accounts. Stripe will notify your connected accounts automatically about the changes that affect them. No action is needed on your part.
This Support page provides you with more details about the notice we sent you describing changes to certain fees for you or your connected accounts. That notice was a legal notice sent to Stripe users, even those who have unsubscribed from optional marketing notices. You cannot unsubscribe from legal notices, but if you'd prefer not to receive any further legal notices from Stripe, you can close your account by following these steps.
Your continued use of Stripe's services after 1 June 2023 is subject to these fee changes. Any termination rights that you have under your agreement with us are unaffected by this change.
You do not need to take any action at this time, and these changes will automatically apply to your business and/or your connected accounts on 1 June 2023.