Compare PayPal and Stripe for nonprofit fundraising. Learn about processing fees, nonprofit discounts, payout times, donor payment options, and which processor fits your needs.
PayPal vs Stripe: Which Payment Processor Should You Choose?
Before launching your first RallyUp Campaign, you’ll need to connect either a PayPal or Stripe account to receive donations. Both payment processors allow nonprofits to securely receive funds as they’re raised with minimal holding periods, but they differ in processing fees, nonprofit discounts, supported countries, payout schedules, and donor payment options. This complete comparison helps you choose the best payment processor for your organization’s fundraising goals.
Side-by-Side Comparison Table
What Are PayPal and Stripe?
Short answer: PayPal and Stripe are payment processors that securely handle credit card transactions and transfer donated funds to your organization’s bank account.
Detailed explanation: When donors contribute to your RallyUp Campaigns, payment processors like PayPal and Stripe collect the payment information, verify the transaction, and deposit funds into your connected account. Both are trusted, PCI-compliant processors used by millions of organizations worldwide. RallyUp does not receive any portion of the payment processing fees charged by PayPal or Stripe.
Payment Processing Fees Comparison
PayPal Processing Fees
Standard rate: 2.59% + $0.49 per transaction
Nonprofit discount for US 501(c)(3) organizations: 1.99% + $0.49 per transaction
International fees: Vary by country
PayPal’s rates may change depending on your organization’s circumstances. Contact PayPal’s customer success team to confirm your specific fee rate.
→ View: PayPal Nonprofit Rates
Stripe Processing Fees
Standard rate: 2.9% + $0.30 per transaction
Nonprofit discount for US 501(c)(3) organizations: Commonly 2.2% + $0.30 per transaction (contact Stripe to confirm)
International fees: Vary by country
Stripe’s rates may change depending on your circumstances. Contact Stripe’s customer success team to confirm your fee rates. To receive the nonprofit discount, email Stripe at nonprofit@stripe.com.
→ View: Stripe Pricing Details
Global Reach and Currency Support
PayPal Geographic Coverage
- Countries supported: 200+
- Currencies supported: 130+
PayPal offers broader international coverage, making it ideal for organizations operating in multiple countries or receiving donations from diverse geographic regions.
→ View: PayPal Supported Countries
Stripe Geographic Coverage
- Countries supported: 46+
- Currencies supported: 135+
While Stripe supports fewer countries than PayPal, it’s available in most major markets and offers extensive currency support.
→ View: Stripe Global Availability
Important: If Stripe isn’t supported in your country, you can use PayPal or contact Stripe to request a special invitation.
Payout Schedules and Fund Availability
PayPal Payout Timing
Funds are immediately available in your PayPal account after a donation is made. Transferring funds from PayPal to your bank account takes 1-3 business days on average.
→ Learn more: How to Get Money from PayPal
Stripe Payout Timing
Payout timing depends on your customized payout schedule settings in your Stripe account. You can configure daily, weekly, or monthly payouts based on your organization’s cash flow needs.
→ Learn more: Stripe Payout Schedules
Donor Payment Options
PayPal Accepted Payment Methods
Donors can contribute using:
- Debit cards
- Credit cards
- PayPal accounts
- Check payments (optional, can be enabled by organization)
Stripe Accepted Payment Methods
Donors can contribute using:
- Debit cards
- Credit cards
- Apple Pay
- Google Pay
- Check payments (optional, can be enabled by organization)
Stripe offers more digital wallet options with Apple Pay and Google Pay integration, which can streamline the checkout process for donors who use these services.
→ Learn more: Understand Accepted Payment Methods
Switching Between Payment Processors
You can change your payment processor at any time from your RallyUp account settings. When you switch processors:
- The change applies to all active Campaigns on your account
- Only new donations will go to the newly connected account
- You retain access to all previous donations in your original processor account
- Historical data and reports remain available in both processor dashboards
What happens next: After connecting a new payment processor, all future donations will be deposited into the new account according to that processor’s payout schedule.
Frequently Asked Questions
Which payment processor has lower fees for nonprofits?
PayPal typically offers lower fees for US 501(c)(3) organizations at 1.99% + $0.49 per transaction, compared to Stripe’s common nonprofit rate of 2.2% + $0.30 per transaction. However, actual rates vary by organization and should be confirmed with each processor.
Can I use both PayPal and Stripe for different Campaigns?
No, RallyUp connects one payment processor per organization account. All Campaigns under your account use the same connected processor. However, you can switch processors at any time, with new donations going to the newly connected account.
How do I get the nonprofit discount from PayPal or Stripe?
For PayPal, apply for nonprofit status through their website. For Stripe, contact nonprofit@stripe.com to request the discounted rate. After receiving approval, update your payment processing rate in RallyUp’s Payment Processing settings to ensure accurate reporting.
→ Learn more: How to Update Your Credit Card Processing Rate
Does RallyUp receive any of the payment processing fees?
No, RallyUp does not receive any portion of payment processing fees charged by PayPal or Stripe. These fees go entirely to the payment processor to cover transaction costs.
What if my payment processor account shows “Pending” status?
A “Pending” status means your account is still being reviewed or verified by the payment processor. This can occur when documentation, nonprofit discounts, or payment schedules are being confirmed. Try reconnecting your account or contact the processor for assistance.
→ Learn more: Understand Why Your Stripe or PayPal Account Status Is Pending
Which processor is better for international organizations?
PayPal supports 200+ countries compared to Stripe’s 46+ countries, making PayPal the better choice for organizations operating in regions where Stripe isn’t available. However, if your country supports both processors, consider other factors like fees and donor payment preferences.
Why would I choose PayPal over Stripe?
Choose PayPal if you need support in countries where Stripe isn’t available, prefer donors to use PayPal accounts for contributions, want immediate access to funds in your PayPal account, or already have an established PayPal business account.
Why would I choose Stripe over PayPal?
Choose Stripe if you want to offer Apple Pay and Google Pay options to donors, prefer customizable payout schedules, value Stripe’s robust reporting dashboard, or have negotiated a competitive nonprofit discount rate with Stripe.
What’s the difference between PayPal and Stripe for donor experience?
The main difference is payment options: PayPal allows donors to use their PayPal accounts, while Stripe enables Apple Pay and Google Pay. Both processors accept standard debit and credit cards. Most donors won’t notice which processor you’re using during checkout.
How Payment Processing Fees Appear in Your Dashboard
Both PayPal and Stripe display RallyUp platform fees (if applicable) and payment processing fees in your dashboard, though they use different terminology:
- PayPal labels RallyUp fees as “Partner commission”
- Stripe labels RallyUp fees as “Application fee”
This terminology is set by the payment processors and cannot be changed by RallyUp.
→ Learn more: How RallyUp Fees Appear in Your Stripe or PayPal Dashboard
Setting Up Your Payment Processor
Ready to connect your payment processor? Follow the step-by-step setup guide to create or link your PayPal or Stripe account:
→ Learn more: How to Set Up Direct Funds
Understanding Processing Fees
Both processors charge fees to cover the costs of processing credit and debit card transactions. Learn more about how these fees work:
→ Learn more: Understand Debit and Credit Card Processing Fees
Need Help Deciding?
If you’re unsure which payment processor is right for your organization, consider these factors:
- Geographic reach: Where are your donors located?
- Nonprofit discount: Have you confirmed rates with both processors?
- Donor preferences: Do your supporters prefer PayPal accounts or digital wallets?
- Payout needs: Do you need immediate access to funds or prefer scheduled payouts?
- Current accounts: Do you already have an established business account with either processor?
Our support team is available to answer questions about payment processors:
- Live chat: Visit rallyup.com and click the purple message button at the bottom right during business hours
- Knowledge Base: Search our Help Center for additional payment processing articles