Compare PayPal and Stripe for nonprofit fundraising. Learn about processing fees, nonprofit discounts, payout times, donor payment options, and which processor fits your needs.
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.
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.
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.
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.
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.
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.
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.
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.
How do I find donations from a Campaign that ran under a previous Stripe account?
When you connect a new Stripe account to RallyUp, only donations collected from that point forward go to the new account. Donations from Campaigns that ran while an earlier Stripe account was connected stay in that older account, even if you have since linked a different one.
If you have connected more than one Stripe account to your RallyUp login over time, your donations may be spread across multiple Stripe accounts. To identify which account received a specific Campaign’s donations:
- Log into Stripe at stripe.com.
- Click your account name or icon in the upper-left corner of the Stripe dashboard.
- Review the list of accounts associated with your login and note the last four characters of each account ID.
- Switch to each account and open the Balance or Payments section to find the account that contains the donations you are looking for.
📝 Note: The account that received your donations is the Stripe account that was connected to RallyUp at the time those donations were collected — not necessarily the account connected today.
What do I do if my Stripe account is configured for manual payouts?
Stripe accounts can be set to automatic or manual payouts. If an account — including an older, previously connected Stripe account — is set to manual payouts, your funds will accumulate in the Stripe balance but will not be sent to your bank until you take action. You have two options: switch to automatic payouts going forward, or trigger a one-time manual payout right away.
To enable automatic payouts:
- Log into stripe.com and switch to the Stripe account that holds the funds.
- In the left navigation menu, click Settings.
- Select Payouts.
- Under Payout schedule, select Automatic and choose your preferred frequency — daily, weekly, or monthly.
- Click Save.
✓ Result: Stripe will transfer your available balance to your connected bank account on the schedule you selected, starting with the next payout cycle.
To trigger an immediate manual payout:
- Log into stripe.com and switch to the correct Stripe account.
- In the left navigation menu, go to Balance.
- Click Pay out funds.
- Enter the amount you want to transfer and confirm your bank account.
- Click Pay out.
✓ Result: Stripe will send the specified amount to your bank account, typically within 1–2 business days depending on your bank.
⚠️ Warning: After saving a new payout schedule, navigate away from the settings page and return to Settings > Payouts to confirm the change saved correctly. If the setting did not save, your balance will remain in Stripe until you retry.
What should I do if my funds still have not arrived after updating my Stripe payout settings?
RallyUp does not hold your donation funds. Once a donation is processed, the funds go directly to your Stripe account and RallyUp has no further access to them. If you have updated your payout settings or triggered a manual payout and the funds still have not reached your bank, contact Stripe Support directly.
To help Stripe locate and release your funds quickly, gather the following information before you reach out:
- The last four characters of the Stripe account ID that should hold the funds
- The date range of the campaign or donations in question
- The approximate total amount you are expecting
- Whether the account was set to manual or automatic payouts when the donations were collected
To contact Stripe Support:
- Go to support.stripe.com.
- Click Contact support.
- Select the category that best matches your issue. For missing or delayed payouts, choose Payouts and bank accounts.
- Describe your situation and include all of the details listed above.
✓ Result: Stripe Support will use your account ID and campaign dates to locate the funds and advise you on next steps.
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.
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.
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.
Why are my Campaign donations not showing in my current Stripe account?
If you have connected more than one Stripe account to RallyUp over time, donations from earlier Campaigns may have gone to a previous Stripe account rather than your current one. Log into Stripe, switch between all accounts associated with your email address, and check the Balance and Payments sections of each account to find where the funds are held.
Does RallyUp hold my donation funds?
No. RallyUp does not hold, store, or control donation funds at any point in the payment process. All payments are processed directly to your connected Stripe or PayPal account. If a payout has not reached your bank, the funds are in your payment processor account — check your payout settings and balance in Stripe or PayPal.
What is the difference between automatic and manual payouts in Stripe?
With automatic payouts, Stripe sends your available balance to your bank account on a schedule you choose — daily, weekly, or monthly. With manual payouts, your balance stays in Stripe until you initiate a transfer yourself. If your Stripe account is set to manual payouts and you have not triggered a transfer, your donations are held in your Stripe balance and have not been sent to your bank yet.
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.
Understand: 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:
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:
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 of these processors?