What Are Stripe Fees A Guide for Woodworking Shops 2026

Accepting online payments is a must, but the fees can feel like a necessary evil. When you use a service like Stripe, you'll always see their headline rate: 2.9% + $0.30 per successful transaction. But if you stop there, you’re missing the full picture of what it really costs to run your shop.

What Stripe Fees Really Cost Your Shop

Think of that standard fee as the base coat of finish on a new piece of furniture. It’s the predictable starting point for every online sale you make with a domestic credit card, debit card, or a digital wallet like Apple Pay. It’s simple and gets the job done for basic orders.

But just like a true high-end finish, your final payment processing cost has more layers. The final price you pay depends on variables that go well beyond that initial number, and these can eat into your margins if you aren't paying attention.

Beyond the Standard Rate

For a custom woodworking shop, not every sale is a simple click-and-buy. You might be invoicing a commercial client for a large millwork project, selling a one-of-a-kind table to a buyer overseas, or unfortunately, dealing with a payment dispute.

Each of these common scenarios adds another layer to your costs:

• International Payments: Land a sale with a client outside the US? Stripe adds a 1.5% cross-border fee on top of the standard rate.
• Currency Conversion: If that international client pays in their local currency, converting it back to dollars will cost you an additional 1-2% fee.
• Payment Disputes: When a customer issues a chargeback, you don't just lose the sale. Stripe also charges a non-refundable $15 dispute fee to handle the case.
• Value-Added Services: Using extra tools like Stripe Billing for subscriptions or Stripe Invoicing adds its own small percentage, which can add up.

Getting a handle on these numbers isn't just about accounting—it's about protecting your bottom line. Knowing your true cost of payment processing is the only way to price your work confidently and ensure every project is as profitable as it should be.

This is especially true for shops using platforms like TimberCloud, where B2B invoicing and complex custom orders are the norm. This guide will break down every single fee so you know exactly what you’re really paying. We’ll help you shift from just accepting fees to actively managing them, so you can keep your focus on your craft.

Stripe's Standard Online Transaction Fees At a Glance

To give you a clearer picture, here’s a quick summary of the most common fees a US-based shop will run into when taking payments online.

As you can see, the "simple" fee can quickly double depending on the customer and the transaction. Understanding these scenarios is the first step toward building a more resilient and profitable business.

Decoding Stripe's Core Payment Processing Fees

To really get a handle on what Stripe fees will cost your woodworking shop, you need to first master the foundation of their pricing. At its core, there’s a simple formula that covers the lion's share of online transactions you'll ever process. Think of it as the cost of admission for doing business online securely and smoothly.

This is the fee you pay every time a customer checks out on your website using a standard credit card, debit card, or even a digital wallet like Apple Pay or Google Pay. It’s an all-in-one rate that handles the complex dance between banks and security checks happening behind the scenes.

The Baseline Rate for Online Sales

For a long time now, Stripe's standard fee for online card payments has been a predictable 2.9% + $0.30 per successful charge. This straightforward pricing is exactly why it's become a go-to for businesses like custom woodworking shops that are just starting to sell online.

This one rate covers everything from Visa and Mastercard to American Express, with no surprise setup costs or monthly fees. For a manufacturer, that kind of predictability is gold. It lets you forecast your costs accurately, whether you're selling a single custom piece or managing a large B2B order.

Key Takeaway: This baseline fee is your most common cost. For every successful online payment from a U.S. customer, Stripe takes a small percentage of the total sale plus a fixed 30-cent fee.

This simple structure is a massive advantage for shops using integrated platforms like TimberCloud. You can price a small, custom-machined part or a massive bespoke furniture commission with confidence, knowing exactly what you'll pay in fees. If you're looking at the bigger picture, you can see how this fits into a larger strategy in our guide on how to best implement ecommerce for manufacturers.

Why Keyed-In Payments Cost More

But what happens when a customer calls you to place an order over the phone? You might think the fee would be the same, but manually entering—or "keying in"—a customer's card details actually carries a higher price tag.

For these manually keyed-in transactions, Stripe charges a higher rate of 3.4% + $0.30.

This isn't just an arbitrary hike; it's all about risk. When a credit card isn't physically present and verified through a secure online checkout, the potential for fraud goes up. The payment industry calls these "Card-Not-Present" (CNP) transactions, and they are statistically far more likely to end in disputes or chargebacks.

That higher fee helps cover the increased risk that payment processors like Stripe take on for you. For your shop, the takeaway is simple:

• Online Checkout: Always encourage customers to use your website's secure checkout to lock in the lower 2.9% + $0.30 rate.
• Phone Orders: Save manually entered payments for when they're absolutely necessary, but keep that slightly higher 3.4% + $0.30 cost in mind.

Building this clear mental model of your base costs is the first step. Once you understand the difference between a standard online transaction and a keyed-in one, you can start making smarter decisions that directly protect your profit margins.

Selling Globally? Let's Talk About International Fees

Taking your woodworking business global is a huge milestone. But the moment you start selling to clients outside your home country, Stripe's fee structure changes. The simple domestic rate you're used to is just the starting point.

When an international order comes through, you're looking at extra fees that get tacked on top of the standard processing cost. For a US-based shop, this means the price of accepting an international card jumps instantly. It's something you absolutely have to factor in when pricing custom pieces for a worldwide audience.

Let's break down exactly what these fees are.

The International Card Fee

First up is the international card fee. Any time a customer pays with a card issued outside your country, Stripe adds 1.5%. This happens even if you charge them in your own currency (like USD).

So that familiar 2.9% + $0.30? It just became 4.4% + $0.30 for any international credit card. This extra charge covers the higher risk and complexity of moving money across different banking systems and regulations.

The Currency Conversion Fee

Here’s where it can get even more expensive. If you decide to charge your international customer in their local currency—say, Euros or British Pounds—Stripe has to convert that money back into your currency before depositing it. For that service, they add another 2% currency conversion fee.

While showing prices in a local currency is a great way to make international buyers feel more comfortable, that convenience comes at a cost that eats directly into your margin. If both fees apply, your total cost can more than double.

For a US-based woodworker, this means a single international sale paid in a foreign currency could get hit with 6.4% + $0.30 in fees (2.9% base + 1.5% international + 2% conversion). That's a huge jump from the domestic rate.

When you're trying to get a handle on these costs, it can be helpful to see how other financial providers handle them. Looking at a breakdown of something like Capitec foreign exchange fees, for example, gives you a broader perspective on how international transaction costs are structured across the market.

International Fees in Action

Let’s put this into a real-world scenario. Imagine your shop sells a custom dining set for $10,000.

• Domestic Sale: A customer in the US pays with a US-issued credit card.

  • Calculation: ($10,000 * 2.9%) + $0.30 = $290.30 in fees.
  • Your Net Deposit: $9,709.70

• International Sale (Same Currency): A customer in France pays with their French credit card, but you charge them in USD.

  • Calculation: ($10,000 * 4.4%) + $0.30 = $440.30 in fees.
  • Your Net Deposit: $9,559.70

• International Sale (with Currency Conversion): That same French customer pays in Euros, and Stripe converts it for you.

  • Calculation: ($10,000 * 6.4%) + $0.30 = $640.30 in fees.
  • Your Net Deposit: $9,359.70

The difference is stark. That final scenario costs you $350 more in fees than a simple domestic sale. For shops using a platform like TimberCloud to sell configurable products around the world, doing this math is non-negotiable for setting prices that protect your profit margins, no matter where your customer lives.

One interesting point is that Stripe’s pricing isn’t the same everywhere. For instance, in the UK and European Economic Area (EEA), Stripe charges a much lower 1.5% + 20p for standard local cards. This is great news for European woodworkers who can leverage those lower rates. You can dig deeper into these regional differences and learn more about Stripe fee structures for UK and EEA businesses on Noda.live.

Beyond the Basics: Watch Out for These Stripe Fees

Once you’ve got a handle on Stripe's standard card processing fees, you might think you’re all set. But the real story of what you'll actually pay is often found in the fine print—the fees for disputes and extra services that can sneak up on you and take a serious bite out of your profit.

These are the costs that don’t show up on every single transaction, but when they do, they can be a painful surprise.

The Sting of a Payment Dispute

Nothing's more frustrating than a customer disputing a charge for a project you've poured hours into. When this happens, it kicks off a formal process called a chargeback, and Stripe immediately gets involved.

Here's the kicker: even if you do everything right and ultimately win the dispute, Stripe still charges a $15 fee (for US businesses) just for managing the process. Think of it as an administrative fee for them to play mediator between you and your customer’s bank. It's non-refundable. If you lose, you're out the original sale amount and that $15.

For a custom woodworker, a single chargeback can be devastating. A dispute on a $5,000 custom table isn’t just a minor issue; it's a significant financial hit. Beyond the standard processing charges, it's crucial to understand the implications of a Stripe chargeback fee, which can seriously eat into your margins.

This is exactly why your best defense is a good offense. Having crystal-clear communication, detailed order specs, and solid proof of delivery—all things a platform like TimberCloud helps you track—is how you win these battles and protect your bottom line.

How Optional Add-On Services Add Up

Stripe has built an impressive toolbox of services that go way beyond just taking payments. They’re designed to automate parts of your business, but almost all of them come with their own separate fees.

Here are a few common ones you might use:

• Stripe Billing: If you manage recurring B2B orders or subscriptions, this adds 0.5% to each transaction.
• Stripe Invoicing: Need to send out professional invoices? That’ll be an extra 0.4% per paid invoice.
• Stripe Tax: To automatically handle sales tax calculations, Stripe adds another 0.5% to each transaction where tax is figured.

On their own, these little percentages don't look like much. But they compound. If you're using a few of these services, your base 2.9% + $0.30 fee can easily balloon into an effective rate of over 4%. For a busy shop that’s automating quotes and selling across different states, it's easy to see how these fees can stack up fast.

Think of it like finishing a piece of wood. The base stain is your standard processing fee. Stripe Billing is the first coat of sealant, Invoicing is the second, and Tax is the final polish. Each layer adds a small cost but is necessary for the final, professional result.

The Smartest Way to Handle Large Payments

For custom woodworking shops handling big B2B orders or commercial millwork projects, there's a much better way to avoid those hefty card fees: ACH Direct Debit.

This method lets you pull payment directly from your client’s bank account. The fee is just 0.8%, but the most important part is that it’s capped at a maximum of $5.

That cap is a game-changer for large payments. Let's look at a typical $20,000 invoice for a commercial job.

• Paid via Credit Card: ($20,000 x 2.9%) + $0.30 = $580.30 in fees
• Paid via ACH Direct Debit: The fee hits the $5.00 cap

That’s a staggering $575.30 saved on just one transaction. By simply encouraging your larger clients to pay via ACH, you can dramatically slash your payment processing costs and keep more of your hard-earned money.

How Stripe Fees Impact Your Shop's Bottom Line

It’s one thing to know the different types of Stripe fees exist, but it's another thing entirely to see how they actually carve away at your profit on a real-world project. This is where the theory hits your bank account. The small percentages can be the difference between a profitable job and one where you barely break even.

For a custom woodworking shop, where order values are high and margins are already tight, this isn't just an accounting detail—it's a critical part of your business strategy. Let’s run the numbers on three common scenarios to see how these fees play out in the real world.

Scenario 1: The Domestic Online Order

This is your bread and butter. A customer finds your website, falls in love with a custom coffee table, and places an order right there through your online storefront. The process is smooth and secure.

• Order Value: $1,500
• Payment Method: Standard US Credit Card
• Stripe Fee: 2.9% + $0.30

The math here is pretty straightforward. You're just applying the standard domestic rate to the total.

Fee Calculation: ($1,500 × 0.029) + $0.30 = $43.80

After that fee, Stripe deposits $1,456.20 into your account. It’s a reasonable cost for a secure and convenient transaction, putting your effective fee rate at 2.92%. Not bad at all.

Scenario 2: The Complex International Order

Your shop’s reputation is growing, and now you’ve landed a fantastic order for a full set of custom kitchen cabinets from a client in the United Kingdom. To make it easy for them, you bill in their local currency (GBP), and let Stripe handle the conversion. This is where things get more complicated.

• Order Value: $15,000
• Payment Method: UK-issued Credit Card (International)
• Stripe Fees:
  • Base Fee: 2.9% + $0.30
  • International Card Fee: +1.5%
  • Currency Conversion Fee: +2.0%
  • Total Rate: 6.4% + $0.30

As you can see, the fees stack up fast. The cross-border payment and the currency exchange service both add significant costs.

Fee Calculation: ($15,000 × 0.064) + $0.30 = $960.30

Suddenly, your net deposit is $14,039.70. The fee is huge—over twenty times higher than the domestic order. This drives your effective fee rate all the way up to 6.4%. This is a perfect example of why it's so important to account for these costs when you're pricing a job, which we cover in our guide on how to calculate the price of a product.

On top of percentage-based fees, you also have to watch out for fixed-cost fees for things like disputes or optional services.

While the big percentage fees scale with the order, a fixed cost like the $15 dispute fee can really sting, especially on smaller transactions.

Scenario 3: The B2B Invoice Paid Via ACH

Let's look at another common situation. You’ve just finished a large commercial millwork job for a local contractor. Instead of having them pay with a credit card, you send an invoice and encourage them to pay via ACH Direct Debit, which pulls funds straight from their bank account.

• Order Value: $25,000
• Payment Method: ACH Direct Debit
• Stripe Fee: 0.8% (capped at $5.00)

By a huge margin, this is the most cost-effective way to handle large B2B payments. The percentage is already low, but that $5.00 fee cap is the real game-changer.

Fee Calculation: ($25,000 × 0.008) = $200. But thanks to the cap, the total fee is just $5.00.

Your net deposit is a fantastic $24,995.00, making the effective fee rate a tiny 0.02%. For any shop dealing with high-value invoices, steering clients toward ACH is one of the most powerful moves you can make to protect your profits.

Scenario Analysis: Stripe Fee Impact on a Custom Woodworking Shop

Let's put all three scenarios side-by-side. This table really drives home how dramatically the payment method can affect your bottom line on different types of orders.

As you can see, the effective fee rate swung from over 6% to nearly zero. The international order cost nearly $1,000 to process, while the much larger B2B payment cost only $5. Understanding this impact is the first step to actively managing these costs and keeping more of your hard-earned money.

How to Actually Lower Your Stripe Fees

Okay, so you've seen how Stripe fees can chip away at your profits. The good news is you don't have to just sit back and accept them. Knowing what the fees are is one thing; actively cutting them down is where you really start protecting your bottom line.

These aren't complex accounting tricks. They're straightforward tactics that any shop owner can use, but they do require you to be a little more intentional about how you get paid, especially on those bigger jobs.

Get Your B2B Clients on ACH Payments

For any custom woodworking shop that handles large invoices—think commercial millwork or big B2B orders—this is the single most powerful way to slash your fees. We've already seen how a standard credit card payment can easily cost you hundreds on a five-figure invoice. That stings.

In contrast, an ACH Direct Debit payment costs just 0.8%, and here's the crucial part: it's capped at a maximum of $5. That’s it. Five bucks. By simply getting your larger clients to pay via ACH, you can save a massive amount on every major project. You can frame it to them as a secure and simple bank transfer option, while you quietly reap the huge cost-saving benefits.

My Two Cents: Don't let your biggest invoices get hit with the highest fees. Make ACH your go-to payment method for any B2B transaction over a couple of thousand dollars. You'll bring your processing cost down to practically nothing.

Ask Stripe for a Better Rate

Here’s something many business owners don't realize: Stripe's pricing isn't always set in stone. Once your shop is consistently processing a high volume of sales—the magic number is usually over $30,000 per month—you're in a position to negotiate.

Reach out to Stripe's sales team. A custom pricing plan can make a real difference. Even a seemingly small discount, like getting your rate dropped from 2.9% to 2.7%, adds up to serious savings over a year. Just be ready to make your case with clear numbers on your monthly processing volume and average sale amount.

Pass Fees to Customers (Carefully)

Another route is surcharging, which means passing the processing fee directly to the customer. This can be a tempting way to completely protect your margin on a sale, but you have to tread carefully.

The legality of adding a surcharge varies from state to state, and card network rules are strict: you must clearly disclose the fee before the customer pays. While it's great for your books, it can add friction to the sale and might not feel right for the high-end, custom experience you provide. You have to weigh the financial gain against the potential hit to your brand and customer relationships. For many, a mix of the other strategies is a better fit. You can dive deeper into managing these kinds of financial trade-offs with insights from a good guide on manufacturing accounting software.

Ultimately, using an integrated platform like TimberCloud brings all this payment data into one place. Having that clarity makes it so much easier to see exactly where your money is going, implement these strategies, and make the smart financial calls that actually grow your business.

Your Top Questions About Stripe Fees, Answered

Alright, even after breaking down the different fees, you're probably wondering how this all plays out in the real world of your shop. These practical details matter, especially when a few percentage points can make or break the profitability of a custom job.

Let's get straight to the questions I hear most often from shop owners.

What Happens with Refunds? Do I Get My Fees Back?

This one trips a lot of people up. The short answer is no, Stripe does not return the original processing fees when you issue a refund.

Think of it this way: if you processed a $1,000 order and paid $29.30 in fees, that money is gone for good, even if you refund the customer the full $1,000. It's a sunk cost for the service of processing the original payment. The good news? Stripe won't charge you a second fee just to send the money back. This is a crucial detail for custom shops, where cancellations or order changes are part of the business.

How Do Fees Work on a Platform Like TimberCloud?

When you sell through an integrated platform like TimberCloud, you're using a system called Stripe Connect. This simply means your own Stripe account is linked to the platform, giving you a seamless way to manage payments.

You are still the one paying the standard Stripe processing fees on your sales (like the 2.9% + $0.30 for a standard online transaction). The platform might have its own separate application fee for the software you're using. The important thing to understand is that you aren't being double-charged by Stripe. Your Stripe dashboard will clearly show you exactly what went to Stripe and what, if anything, went to the platform. It's all transparent.

Is There Any Way to Just Avoid Stripe Fees?

Completely? Not if you want to accept credit cards online. But you can absolutely be strategic and guide clients toward payment methods that are far, far cheaper. This is one of the biggest financial levers you can pull in your business.

For any high-ticket order, your best move is to encourage payment via ACH Direct Debit. The fee is just 0.8% and is capped at $5. A $20,000 payment would cost you a mere $5 in fees, compared to the whopping $580.30 you'd pay on a credit card.

If you have a physical showroom, using a Stripe Terminal for in-person payments can also give you a slightly better rate of 2.7% + $0.05. The only way to truly dodge fees is to only accept cash or paper checks, which isn't realistic for growing a modern woodworking business. The goal isn't total elimination—it's smart minimization.

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Ready to take control of your sales, production, and payments all in one place? TimberCloud integrates powerful e-commerce and shop management tools with the security of Stripe, giving you the clarity to protect your margins and grow your business. See how it works.