Calculating the True Cost ofStripe vs Custom.
Stripe charges 2.9% + $0.30 per transaction. At $5M annual revenue, that is $175K/year in processing fees. Calculate custom payment savings.
Why Companies Outgrow Stripe
2.9% + $0.30 per transaction is expensive at high volume
Stripe Atlas, Radar, and other add-ons have separate pricing
Account holds and fund freezes can impact cash flow
Dispute fees of $15 per chargeback add up for high-risk industries
Feature Matrix: Custom vs Stripe
| Capability | Custom Architecture | Stripe |
|---|---|---|
| Transaction Fees | Direct processor rates (1.5–2.2%) | 2.9% + $0.30 per transaction |
| Developer Experience | Custom payment flow, direct processor API | Best-in-class APIs and documentation |
| Time to Integrate | 4-6 weeks for custom payment infrastructure | Hours to integrate basic payments |
| Cost at $5M Revenue | $75K–$110K/year with direct processor | $145K–$175K/year in processing fees |
| Account Control | Direct processor relationship, full control | Risk of holds and freezes |
Frequently Asked Questions
How much does Stripe cost per year?
Stripe charges 2.9% + $0.30 per online transaction. For a company processing $5M/year in payments, that is approximately $145,000–$175,000/year in processing fees. International cards, currency conversion, and Stripe Radar add additional fees.
When should I switch from Stripe to custom payment processing?
Switch when you process $2M+/year in payments. A custom payment integration with a direct processor costs $20,000 to build with $2,000/year maintenance. Direct processor rates (1.5–2.2%) save $35,000–$65,000/year at $5M revenue compared to Stripe 2.9%.
What are the risks of depending on Stripe?
Stripe can hold funds, freeze accounts, or increase rates with limited notice. Companies in perceived "high-risk" industries are especially vulnerable. A direct processor relationship gives you contractual rate guarantees and eliminates platform dependency risk.
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