Stripe became the default payments option for online businesses for a real reason — the API is excellent, the docs are some of the best in tech, and if your business is software, Stripe is probably the right answer. I'm not arguing with that.
But Stripe's pricing was designed for online SaaS. When retailers, restaurants, and service businesses adopt it for everyday in‑person card present transactions, they end up paying a flat 2.7% + 5¢ on debit swipes that interchange at well under 1%. That gap is where this page lives.
When Stripe actually wins
Stripe is the right answer when:
- You run a SaaS or subscription business. Stripe Billing, dunning logic, proration, trials, metered billing — nobody touches them. Don't switch.
- You have international customers. Stripe handles 135+ currencies, local payment methods (SEPA, iDEAL, BACS), and FX more cleanly than any traditional processor.
- You run a marketplace or platform. Stripe Connect with split payments, 1099 handling, and onboarding flows is purpose‑built and very hard to replicate.
- You have engineers and want to own the checkout experience. If your team is shipping custom payment flows, embedded fraud rules, or Radar logic, Stripe's API is worth the premium.
For any of those, Stripe is the answer. Skip the rest of this page.
When Proper Solutions wins
Where Stripe stops making sense is everywhere it has to touch the physical world. Stripe Terminal exists, but it's priced like an afterthought — it's a developer convenience layer on top of someone else's processing, with no statement transparency and no human you can call when a terminal goes down on a Saturday night.
Real example: café doing $25K/mo, $12 average ticket
- Stripe Terminal: 2.7% + 5¢ = $675 + ~$104 = ~$779/mo (effective rate ~3.12%)
- Proper Solutions (Interchange‑Plus): ~1.65% interchange + 0.30% + 10¢ = ~$695/mo (~2.78%). At $50K/mo the gap widens fast because Stripe doesn't scale interchange savings back to you.
- Proper Solutions (Zero‑Fee): ~$15–$30/mo software fee. The full ~$780/mo difference flows to your bottom line.
Restaurants with high small‑ticket volume get hit hardest by Stripe's pricing because the 5¢ per‑transaction fee compounds against a $7 latte the same way the percentage does.
Side‑by‑side comparison
| Stripe | Proper Solutions | |
|---|---|---|
| Pricing model | Flat‑rate (2.9% + 30¢ online, 2.7% + 5¢ Terminal) | Interchange‑Plus or Zero‑Fee |
| Effective rate at $25K/mo + $50 ticket | ~3.10% online / ~2.80% Terminal | ~2.15% (IC+) or ~0.05% (Zero‑Fee) |
| Contract length | Month‑to‑month | Month‑to‑month, no ETF |
| Hardware ownership | Stripe Terminal devices (BBPOS, Verifone P400) | Clover/Dejavoo/PAX, portable to other processors |
| Support model | Email/chat ticket queue, 24/7 chat | Dedicated rep, direct line, on‑site help in South Florida |
| Itemized statements | Dashboard transaction‑level, no IC breakout | Yes — interchange + markup separated line by line |
| Best for | SaaS, marketplaces, global online | In‑person retail, restaurants, services |
When to stick with Stripe
- Your business is primarily online subscriptions or SaaS.
- You process meaningful international card volume or use Connect for a marketplace.
- Your team needs deep API control and customizes checkout/billing logic.
- Your support needs are met by chat queues and developer docs.
When to switch to Proper Solutions
- Most of your revenue is in‑person. Retail, restaurant, salon, services. Stripe Terminal is the wrong tool for that job.
- You take a lot of debit cards. Stripe's flat rate doesn't pass debit interchange savings back to you. Interchange‑Plus does.
- You need real hardware and real support. Countertop terminals, handhelds, kiosks — plus a phone number that goes to a human who knows your account.
- You want to see what you're actually paying. Stripe shows you transactions. We show you interchange, assessments, and markup separated on every statement.
- You want next‑day or same‑day deposits instead of Stripe's 2–7 day rolling default.
The hybrid approach (often the right answer)
A lot of merchants land on this: keep Stripe for online subscriptions, custom checkout, or international, and move in‑person/retail volume to Interchange‑Plus. There's no rule that says you have to use one processor for everything, and the savings on in‑person volume usually more than pay for the operational overhead of running two stacks.
See our Interchange‑Plus page for how we structure in‑person pricing, or check the savings calculator to model your own numbers.