UK businesses enjoy some of the lowest Stripe rates in the world thanks to EU interchange caps. Here's the complete UK guide — domestic rates, European cards, SEPA, VAT, and how UK compares globally.
UK and EU card interchange fees are capped by regulation — 0.2% for debit cards and 0.3% for credit cards. This is why Stripe UK (1.5%) is so much cheaper than Stripe USA (2.9%). The fixed fee (£0.20) is also lower, making UK Stripe highly cost-effective for businesses of any size.
| Amount | UK Card Fee (1.5%+£0.20) | You Receive | Non-EU Card (3.25%+£0.20) | You Receive |
|---|---|---|---|---|
| £10 | £0.35 | £9.65 | £0.52 | £9.48 |
| £50 | £0.95 | £49.05 | £1.82 | £48.18 |
| £100 | £1.70 | £98.30 | £3.45 | £96.55 |
| £500 | £7.70 | £492.30 | £16.45 | £483.55 |
| £1,000 | £15.20 | £984.80 | £32.70 | £967.30 |
Stripe's processing fees are subject to UK VAT (20%). This means the true cost to non-VAT-registered businesses is higher than the headline rate. For VAT-registered businesses, Stripe's fees can be claimed as input tax — effectively making VAT neutral.
| Transaction Size | Stripe UK (1.5%+£0.20) | PayPal UK (1.2%+£0.30) | Cheaper Option |
|---|---|---|---|
| £10 | £0.35 | £0.42 | ✓ Stripe |
| £33 | £0.70 | £0.70 | 🤝 Equal |
| £50 | £0.95 | £0.90 | ✓ PayPal |
| £100 | £1.70 | £1.50 | ✓ PayPal |
| £500 | £7.70 | £6.30 | ✓ PayPal |
PayPal is cheaper for most UK transactions above £33 due to its lower percentage (1.2% vs 1.5%). However, Stripe wins on developer tools, API quality, subscription billing, and refund policy (Stripe charges £0 for refunds; PayPal keeps the £0.30 fixed fee).