Stripe is the most developer-friendly payment processor, but it's also the most cost-effective for freelancers who invoice clients directly. Here's a complete breakdown of what you'll actually pay.
Stripe's Fee Structure for UK Accounts
Standard Card Processing
| Card type | Fee |
|---|---|
| UK-issued Visa/Mastercard | 1.5% + 20p |
| European Visa/Mastercard | 2.5% + 20p |
| Non-European cards (US, AUS, etc.) | 3.25% + 20p |
| UK Amex | 1.9% + 20p |
| 3D Secure (SCA) | Included |
Bank Transfer (Pay by Bank)
| Transfer type | Fee |
|---|---|
| Bacs (UK bank transfer) | 0.5%, capped at £2 |
| SEPA (EU bank transfer) | 0.5%, capped at £5 |
The bank transfer option is significantly cheaper for large invoices and worth enabling for regular clients.
Create a free Stripe account →Real Cost: Stripe vs PayPal vs Wise on £1,000 Invoice
| Scenario | Stripe | PayPal | Wise (bank transfer) |
|---|---|---|---|
| UK client pays by card | £15.20 | £34.20 | N/A |
| UK client pays by bank transfer | £2.00 (capped) | £0 (but slower, less trusted) | £0 |
| EU client pays by card | £25.20 | £39.20 | N/A |
| US client pays by card | £32.70 | £44.20 | N/A |
| US client pays by bank transfer | £5.00 (via SEPA) | £0 (but PayPal balance) | £0 |
For large invoices (£500+), offering bank transfer via Stripe saves significant money over card processing.
Annual Fee Impact: Stripe vs PayPal
For a UK freelancer with £2,000/month in UK client invoices, all paying by card:
| Platform | Monthly fee | Annual fee | Annual saving vs PayPal |
|---|---|---|---|
| Stripe | ~£30.40 | ~£365 | Save ~£455 |
| PayPal | ~£68.20 | ~£818 | — |
At £5,000/month income, Stripe saves over £1,100/year vs PayPal.
Stripe for International Invoices: The FX Cost
When a US client pays your invoice in USD, Stripe processes in USD and converts to GBP on payout. The conversion fee is 2%.
Better approach for large USD invoices:
- Invoice the client in USD via Stripe Payment Link (client pays)
- Alternatively, provide your Wise USD account details and have client pay by bank transfer → free to receive, 0.41% to convert
For invoices under £200, Stripe's card processing is fine. For larger invoices, a Wise bank transfer eliminates both the card fee and the FX conversion cost.
Stripe's Fee-Reducing Features
Stripe Invoicing (Bank Transfer Toggle) Enable "pay by bank transfer" on Stripe invoices. UK clients who pay by Bacs cost 0.5% (max £2) vs 1.5%+20p by card. For a £500 invoice: £2 vs £7.70.
Passing on fees to clients You can legally add the Stripe fee to UK invoices (just be transparent). Example: "£500 + £7.70 payment processing fee (card only)." Many clients will switch to bank transfer to avoid the surcharge.
Monthly payout (no extra fee) Set Stripe to monthly payout to reduce admin. No fee difference vs daily.
Stripe Radar (fraud protection) Included free — no fee for basic fraud detection.
Stripe vs Alternatives for UK Freelancer Invoicing
| Platform | UK card fee | Bank transfer fee | Best for |
|---|---|---|---|
| Stripe | 1.5% + 20p | 0.5% (max £2) | Most freelancers |
| PayPal | 3.4% + 20p | 0% | Clients who insist on PayPal |
| Wise | N/A | Free to receive | Direct bank payments |
| Square | 1.75% | N/A | In-person payments |
| SumUp | 1.69% | N/A | In-person only |
For remote freelancers invoicing by link or PDF, Stripe + Wise covers all scenarios at lowest cost.
Setting Up Stripe as a UK Freelancer
- Create account: stripe.com → Start now → Enter business details (sole trader fine)
- Verify identity: Photo ID required (1–2 days for full activation)
- Set up invoice or payment link: Dashboard → Invoicing or Payment Links
- Add bank account for payouts: Settings → Bank accounts → Add your UK sort code + account number
- Enable bank transfer option: Dashboard → Settings → Payment methods → Enable Bacs Direct Debit
Done. Share payment links or invoices with clients. No monthly fee.
Frequently Asked Questions
Does Stripe charge a monthly fee? No — Stripe's standard account is free. You only pay per transaction.
How does Stripe pay out to UK freelancers? Default: 2-day rolling payout to your UK bank account. Configurable to weekly or monthly in Dashboard Settings → Payouts.
Can I use Stripe without a registered company? Yes — UK sole traders can use Stripe. You'll register as an individual/sole trader during signup. No limited company required.
What is Stripe's fee for a £500 invoice to a UK client? For card payment: £7.70 (1.5% × £500 + 20p). For bank transfer: £2.00 (0.5% × £500, capped at £2).
See also: Stripe vs PayPal for freelancers · Best payment setup for UK freelancers · PayPal fee calculator for freelancers
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