Stripe Invoicing vs. Stripe Checkout: Which Feature Saves More on Processing Fees?
- Stripe Invoicing Starter offers 25 free invoices per month; Invoicing Plus charges 0.4% on all paid invoices.
- Stripe Checkout has no extra platform fee beyond standard 2.9% + $0.30 processing.
- For a business billing $50,000 monthly, Invoicing Plus costs an extra $200/month ($2,400/year) solely for hosted invoice generation.
- B2B merchants can save thousands by switching high-value invoices from credit cards to ACH Direct Debit (capped at $5.00).
When collecting payments from clients or subscribers, Stripe provides two primary out-of-the-box user experiences: Stripe Invoicing and Stripe Checkout. While both allow clients to enter credit card or bank details securely, their underlying fee structures differ significantly once you scale past 25 monthly invoices.
Understanding Stripe Invoicing Tiers
Stripe offers two tiers for hosted invoices:
- Invoicing Starter: First 25 invoices per month are free of platform charges. Subsequent invoices incur a 0.4% fee per paid invoice.
- Invoicing Plus: Costs 0.5% per paid invoice (or 0.4% with specific volume commitments) and includes automated reminder cadences, custom PDF styling, and line-item tax calculations via Stripe Tax.
| Monthly Invoice Volume | Average Invoice Size | Invoicing Plus Fee (0.4%) | Standard Processing (2.9% + $0.30) | Total Annual Cost |
|---|---|---|---|---|
| 50 invoices | $500.00 | $100.00/mo | $740.00/mo | $10,080.00/yr |
| 100 invoices | $1,500.00 | $600.00/mo | $4,380.00/mo | $59,760.00/yr |
| 250 invoices | $2,500.00 | $2,500.00/mo | $18,200.00/mo | $248,400.00/yr |
When Does Stripe Checkout Make More Sense?
If your application or website can initiate payments through a direct redirect, Stripe Checkout carries zero additional platform percentage fees. You pay solely the card processing rate (2.9% + $0.30). For high-ticket consulting or enterprise retainers, building a simple checkout session saves up to 0.4% of top-line revenue.
Compare Stripe Invoicing with Other Gateways
Check your total processing fees with Stripe Invoicing Plus enabled using our comprehensive calculator.