Stripe Transaction Fees: Why Xflow Is a Better Alternative for International Payments

If you're an Indian business or freelancer receiving payments from international clients, the number you need to know isn't 2.9% + $0.30m that's Stripe's US domestic rate and it doesn't apply to you. For Indian users, the real all-in cost of using Stripe is closer to 6-7% once you factor in the India-specific processing fee, currency conversion markup, and GST on Stripe's service charges.

And that's before you account for the fact that Stripe has been invite-only in India since May 2024, meaning you can't just sign up and start receiving payments. You need to apply, get approved, and meet a fairly specific set of eligibility criteria.

To put a rupee figure to it: on a $10,000 payment from a US client, an Indian business using Stripe loses approximately ₹52,000-₹53,000 in fees alone. We walk through exactly how that happens later in this article.

Cross-border payment flows run into the trillions of dollars each year and keep growing, which highlights the importance of choosing cost-efficient online money transfer platforms. 

In order to keep up with the times, understanding the ins and outs of a fintech platform such as Stripe is extremely important. In this article, we will delve into what Stripe charges, explore some business use cases, provide some best practices, and discuss some more reliable and cost-efficient alternatives to Stripe. 

• Stripe transaction fees include processing charges, FX markups, cross-border payment charges, refund costs, and chargeback penalties.
• Hidden conversion costs, slow settlements, and regional availability issues increase operational complexity.
• To save money when using Stripe, businesses can form multi currency accounts, accept money locally, and practice strategic FX conversions.
• Stripe has been invite-only in India since May 2024, you cannot sign up directly. You need to request an invitation through Stripe's sales team.
• The true all-in cost for Indian businesses receiving USD is 6%+ once you add the 4.3% processing fee, 2% FX markup, and 18% GST on Stripe's service charges.
• Stripe does not automatically issue FIRA (Foreign Inward Remittance Advice) or eBRC, both of which are mandatory for Indian exporters claiming GST refunds and meeting RBI reporting requirements. You have to obtain these manually from your own bank.

Before getting into fees, this is the question most Indian businesses actually need answered first.

Stripe went invite-only in India in May 2024, citing the "evolving regulatory landscape." That means you can no longer sign up directly, you need to contact Stripe's sales team and request an invitation, and approval is not guaranteed.

In practice, approvals tend to go to registered businesses that have a GSTIN, a website with clear terms, privacy policy, and refund policy pages, and verifiable export operations. Individual freelancers without company registration are rarely approved.

It's also worth understanding the licensing situation: Stripe received an RBI Payment Aggregator (PA) licence in January 2024, but does not hold a PA-CB (Payment Aggregator Cross-Border) authorisation. Cross-border payments run through authorised dealer bank partnerships instead.

As of April 2026, general availability has not resumed, despite earlier signals that Stripe planned to expand access by H2 2025. If you're evaluating Stripe today, factor in the time and uncertainty of the invitation process before committing.

Stripe is a fintech company that helps businesses with online payments. It provides an export payment solution, which means that businesses can receive payments for goods sold internationally.

Stripe transaction fees include the various costs that Stripe charges businesses for processing payments. The fees differ based on whether it is a domestic or an international transfer. These fees mainly include a percentage of the amount and a fixed fee. Stripe has a pay-as-you-go scheme, which means that businesses only pay when a transaction is conducted.  

In India, Stripe's fee structure is meaningfully different from what you'll see quoted in most global articles. Indian businesses face a 4.3% processing fee for international cards billed in USD and not the 2.9% figure that applies in the US. 

On top of that, there's a 2% currency conversion charge when funds are converted to INR. That puts your base cost at 6.3% before GST is applied on Stripe's service fees, pushing the effective cost higher still.

Stripe has both domestic and global transaction costs. However, their fee structure can differ as shown:

1. Domestic transactions

For domestic transfers, Stripe demands a fee of 2.9% of the transferred amount plus a fixed fee of $0.30 per transaction. There is an additional amount for instant payouts or handling disputes. The cost of domestic transactions depends on the card type and the business’s needs. 

2. International transactions

  For Indian businesses receiving international payments, the fee breakdown is:

Stripe can also charge you different payment gateway fees, such as processing fees, currency conversion markup, cross-border payment charges, and refund or chargeback fees:

1. Processing fee

For Indian Stripe accounts, the processing fee depends on the card type: 2% for domestic cards, 3% for international Visa/Mastercard, and 4.3% for international cards billed in USD. Note that ACH transfers and wire transfers are not available for Indian Stripe accounts,  only card payments are supported

2. Currency conversion markup

When funds are converted from USD (or another foreign currency) to INR, Stripe applies a 2% currency conversion markup on Indian accounts. (Note: The 1% figure that appears in global Stripe documentation does not apply to India.)

3. Global transaction costs

International card payments carry a higher processing rate than domestic cards (3% for Visa/Mastercard and 4.3% for cards billed in USD, versus 2% for domestic cards), which reflects the added cost of cross-border payments and regulations.

4. Refund and chargeback fees

Stripe charges no additional fees for any refunds. That said, it charges $15 per chargeback or payment dispute, regardless of the outcome. To avoid this fee, refunds should be initiated before a dispute even arises. 

One important nuance for Indian businesses: Stripe does not return FX fees on refunds or chargebacks. So if a $1,000 payment is reversed, you've already absorbed the 2% conversion cost, and you don't get it back. For businesses processing multiple international transactions, this is a hidden cost that compounds over time.

5. GST on Stripe fees

Indian businesses pay 18% GST on Stripe's service charges. At a base rate of 6.3% (4.3% processing + 2% FX), GST pushes the effective cost to approximately 6.5-7%+ on each transaction. For high-volume exporters, this adds up to a significant margin drain.

Here's what receiving a $10,000 payment from a US client actually costs you on Stripe:

Now compare this with Xflow on the same $10,000:

• Processing fee: flat $12 or 0.4-0.6% (depending on volume)
• FX rate: mid-market rate, 0% markup
• eFIRA: automated, at zero cost
• Estimated saving vs. Stripe: ₹45,000-₹48,000 on a single transaction

Depending on their business model, businesses are faced with different fee structures. Here’s a breakdown of Stripe fees for common business use cases:

Xflow, Wise, PayPal, and Payoneer are fintech alternatives to Stripe. Each international payment platform has its own benefits. The differences are highlighted below:

Stripe fees differ based on whether you’re on the receiving end or the sending end of the transfer amount. The differences are highlighted below:

1. Inbound Stripe fees

Every time your business receives a payment from a customer through Stripe, you’re charged an inbound fee. This is usually just the standard processing fee. Since this comes out of the business’s profit, it directly affects the profit margin. 

2. Outbound Stripe fees

Whenever you send money to your bank account through Stripe, a small fee is charged. Over time, these small fees charged per transaction can add up and cut into your profits. 

If you're an Indian exporter or freelancer, FIRA (Foreign Inward Remittance Advice) and eBRC (Electronic Bank Realisation Certificate) aren't optional paperwork, they're mandatory. You need them to claim GST refunds, satisfy RBI reporting requirements, and prove export turnover for income tax purposes.

Here's the problem: Stripe does not automatically issue FIRA or eBRC.

What you actually get is a generic payment advice email routed via Standard Chartered Bank. You then have to take that to your own bank, request a FIRA, and pay your bank's processing fee. HDFC, for example, charges ₹200 per FIRA. The entire process typically takes 7-15 days.

If you're receiving multiple international payments per month, that's 7-15 days of delay per payment before you can even begin the GST refund process. For IT exporters, agencies, and active freelancers, this is a recurring operational headache.

Xflow handles this differently: eFIRA is generated automatically within 24 hours of each inward remittance, at zero cost, with no manual follow-up required.

Hidden FX fees, slow payments, and local challenges are some of the common struggles with Stripe. We discuss them in detail here: 

1. Hidden FX fees

Stripe applies a 2% currency conversion markup over the mid-market rate on Indian accounts, which can reduce your profit margins significantly. Additionally, since Stripe does not return the FX fees on chargebacks and refunds, the effect on your finances is even higher.

2. Slow payments

Stripe can take around 3-5 business days to complete transfers. There is a 7-14 day verification period for new account holders that can cause more banking delays. This can slow down the cash flow and make financial planning difficult, especially for freelancers and online resellers.

3. Local challenges

Not every Stripe feature is available in every region. This could affect the local businesses negatively, as they might struggle with VPN issues, legal issues, or channel conflicts. Different taxes and currencies, along with limited payment methods, might also complicate global transactions and sales.

4. GST on Stripe fees

Indian businesses pay 18% GST on every Stripe service charge. This isn't a small rounding error,  at a base cost of 6.3%, GST pushes your effective fee closer to 6.5-7%+ per transaction. For anyone processing high invoice volumes, this is a compounding margin cost that's easy to overlook until you see the annual total.

Not every business is in the same position when it comes to Stripe. Here's a quick way to self-assess:

Stripe India may work for you if:

• You're a registered business with a GSTIN and a compliance-ready website.
• Your international clients pay exclusively via credit or debit cards.
• You're a SaaS company with recurring USD billing and don't urgently need automatic FIRA.
• You've already been approved and are operational on the platform.

Stripe India is likely not the right fit if:

• You're a freelancer without company registration as you may not get approved. 
• You need automatic FIRA or eBRC for GST refunds or RBI compliance.
• Your clients prefer bank transfers, SWIFT, or UPI.
• You need fast, predictable INR settlements without multi-day delays.

Consider multi-currency set up, local entities, and FX optimisation to save money on cross-border payment charges and protect your margins.

1. Multi-currency setup

Stripe’s multi-currency accounts allow businesses to accept and hold payments in multiple currencies. This can help you in avoiding extra conversion fees and lowering exchange rate risks. Charging customers in their local currency also allows them to build trust with your business. 

Alternatively, fintech platforms such as Xflow offer multi-currency solutions with low flat fees and minimal forex charges, which is great for businesses going global.

2. Local entities

Opening local entities allows businesses to accept money locally and comply with local tax regulations. Not only does this encourage sales, but it also reduces the number of items abandoned in the cart. While Stripe does help businesses operate locally in many different countries, legislative barriers and pricing issues can still cause some difficulties. 

3. FX optimisation 

Stripe’s 2% currency conversion markup on international payments can hurt business profits. To avoid this, you should convert your currencies at the right time. Since Stripe does not return FX fees during chargebacks and refunds, the use of multi-currency accounts and local entities is important to keep costs low and predictable.

4. Stay on top of your compliance documentation:

Given that FIRA is not automatic with Stripe, build a manual process around it. Keep a paper trail for every inward remittance like payment advice email, invoice, and client contract. Proactively contact your bank to issue FIRA as soon as each payment clears, rather than batching them. The longer you wait, the more it backs up your GST refund claims and tax filings. 

Stripe comes with its own set of disadvantages such as hidden currency conversion markups, delayed settlements, and region-specific issues that can reduce profit margins significantly. 

However, cost-effective alternatives like Xflow, Wise, Payoneer, and PayPal solve these issues by offering lower forex fees, reduced transaction fees, and faster payments. For example, Xflow uses mid-market foreign exchange rates, has a 0.6% fee or $12 flat fee on transactions, and has fast settlements, allowing businesses to retain most of their profits.

The following factors should be considered before you integrate a payment platform into your already existing tech stack:

• Requirements: Evaluate your business’s needs.
• Technical capabilities: Evaluate how the technical capabilities offered by the platform match your needs.
• Integrability: Ensure that the payment platform is easily integrable into your existing systems.
• Compliance: The platform must also provide built-in regulatory compliance.

Keep AML and KYC requirements, data security compliance, and financial reporting needs in mind to make your transactions more compliant and efficient. 

1. Anti-Money Laundering (AML) and Know Your Customer (KYC) 

It is important for businesses to meet the AML and KYC standards for international payments as these help in verifying the customer’s identity, tracking the transactions, and reporting any suspicious activity. Businesses should also make use of automated monitoring and identity checks. They should assign compliance roles and regularly update the documents. 

2. Data security and privacy compliance 

International companies need to protect their customer information. They need to follow standards such as PCI DSS and ISO 20022 to help protect sensitive information and reduce the likelihood of security breaches. Businesses can reduce errors significantly by using automated tools to collect, store, and report data.

3. Financial reporting and tax compliance

To conduct international operations, businesses should align financial reporting to standards like IFRS. Further, statutory accounts and tax reporting should also be managed, keeping in mind the local laws. To meet this standard, businesses should centralize data collection, have standardized reporting processes, and assign roles for report preparation and review. 

4. FEMA compliance

All inward foreign remittances must comply with FEMA (Foreign Exchange Management Act), 1999. You're required to correctly declare the RBI purpose code for each transaction type. Getting this wrong can create compliance issues down the line.

5. FIRA and eBRC

These documents are mandatory for Indian exporters claiming GST refunds and proving export turnover. As covered above, Stripe doesn't generate these automatically, you need to obtain them from your bank after each payment.

6. IEC (Import Export Code)

If your business accepts foreign payments, you may be required to hold an IEC and produce it during Stripe's KYC verification. This is worth sorting before you apply for a Stripe invitation.

7. GST reverse charge

Indian businesses may be liable to pay GST under the reverse charge mechanism on Stripe's service fees. If you haven't already checked this with your CA, it's worth doing, especially if you're processing significant volumes.

The future trends set to disrupt international payments include transparent pricing models and region-specific payment optimizations. Let’s discuss them in detail:

1. Transparent pricing models

Transparent pricing models are an approach that companies can use to be more open about their fee structures. Customers expect clarity and transparency from businesses. The latter can offer this by giving the former detailed information about the pricing structure and disclosing additional fees and discounts.

2. Region-specific payment optimizations

Region-specific payment optimization refers to businesses that modify their payment processes according to a specific region's customer preferences and regulations. This includes offering payment methods in local formats, supporting multiple currencies, and ensuring that all local regulations and compliance requirements are met. 

The way to implement region-specific payment optimization is by understanding target markets, using different payment methods and continuously testing and updating security. 

3. India's PA-CB licensing framework

The RBI's Payment Aggregator Cross-Border (PA-CB) licensing framework is expanding. This is creating a new category of regulated cross-border payment platforms in India, built specifically for Indian exporters, with compliance baked in.

4. Rise of India-first platforms

India-built platforms like Xflow, Skydo, Karbon, and Infinity are gaining ground specifically because they solve the FIRA, FEMA, and INR settlement problems that global platforms like Stripe weren't designed to handle.

5. Automated eBRC and FIRA

Automation of compliance documents is becoming a key competitive differentiator. Platforms that generate eFIRA within 24 hours at no cost are increasingly preferred by IT exporters and agencies processing multiple payments per month.

6. ISO 20022 for cross-border payments

ISO 20022 became mandatory for financial institution-to-financial institution messages from November 2025. The richer data format improves fraud detection and reconciliation accuracy.

While Stripe is popular for online payments, Indian businesses still face challenges due to Stripe’s transaction fees, such as hidden currency conversion markup, late payments, additional foreign charges, and compliance issues. These can negatively impact their profit margins. 

Xflow addresses these issues by using mid-market currency exchange rates with no additional fees, next-day settlements, and transparent flat-fee pricing. Through this, Xflow enables faster and more cost-effective cross-border payment charges than Stripe. 

Here's the side-by-side on a $10,000 payment:

1. Real FX rates

While Xflow uses the mid-market exchange rate and has no markup, Stripe uses a 2% foreign exchange charge. This means making foreign payments is more cost-effective with Xflow. 

2. Local rails

Xflow uses local networks, such as ACH and Fedwire, and has the money in your account in one day. It is much faster than Stripe, which takes 2 to 7 business days for the settlement to reach.

3. Transparent fees

Xflow offers flexible, tiered fee plans based on your invoice volume ranging from low flat fees (like $12) to percentages as low as 0.4%. There are no hidden fees. This contrasts with Stripe's transaction fees, which include 2.9% + $0.30 for a transfer plus international markups, significantly affecting the final amount received.

4. Compliance 

By partnering with the Reserve Bank of India (RBI) and automating important documents such as e-FIRA, Xflow can help Indian businesses stay more compliant when compared to Stripe. This would result in audit-ready, compliant, and faster international payments.

Xflow is a payment platform designed especially for Indian businesses and freelancers. It offers a fast, simple, and cost-effective alternative to Stripe. Xflow strives to be transparent, has minimal fees, and processes payments fast in INR. It also simplifies compliance and integration.

An Xflow Receiving Account provides transparent mid-market FX rates with no hidden fees. Businesses benefit from flexible pricing plans, paying only a low flat fee for smaller invoices or rates as low as 0.4% to 0.6% for larger volumes. Remittances are quick since local INR transfers are faster, which can improve a business's cash flow. Additionally, Xflow has simple compliance with regulations. It provides one-click e-FIRA/FIRC for all international transactions within 24 hours. 

Xflow is built to integrate with your existing tools and supports numerous foreign payment methods. This simplifies making payments across countries, reduces the cost, and ensures compliance with all relevant regulations.

For Indian exporters weighing Stripe’s transaction fees against a dedicated collection setup, Xflow’s receiving accounts are built specifically for collecting invoiced international payments into INR.

Related reading

Stripe Review: Global Payment Processing