PayPal for nonprofits comes down to one number: 1.99% + $0.49 per domestic donation, down from the 2.89% + $0.49 PayPal charges on its standard Donate button (PayPal merchant fees page, updated November 4, 2026). Churches can get it. PayPal’s Confirmed Charity terms ask for a “valid US 501(c)(3) or equivalent” and say nothing about religion.
Nobody hands it to you, though. PayPal has to approve your church before the rate applies. Stripe has a nonprofit discount too, but it won’t publish the rate and it only takes accounts where at least 80% of the money is tax-deductible donations. Square has no nonprofit rate at all.
I’m the executive pastor of a church of about 300 in Hawaii Kai, and I’ve run REACHRIGHT, a church-only marketing company, since 2016. Below: what each processor charges a church as of November 2026, how to apply for the two discounts that exist, and what the difference is worth on a $100 gift and on a $10,000 month.
Before you start: both discounts assume your church can show its 501(c)(3) status on paper. Most churches are tax-exempt automatically and never received an IRS letter of their own, and that gap stops more applications than anything else. If that’s you, read how to prove your church’s nonprofit status first, then come back.
Nonprofit Payment Processing Rates Compared (November 2026)
PayPal is the only one of the three that publishes a nonprofit rate: 1.99% + $0.49, against a standard Donate button rate of 2.89% + $0.49. Stripe offers a discount but keeps the number private until you apply. Square sells nonprofits the same rates everyone else pays, 2.6% + 15¢ in person (Square nonprofit page, November 2026).
| Processor | Standard rate | Nonprofit rate | Who qualifies | How to apply |
|---|---|---|---|---|
| PayPal | Donate button 2.89% + $0.49. Card payments 2.99% + $0.49. PayPal Checkout 3.49% + $0.49 | 1.99% + $0.49 domestic. International gifts add 1.50% | "Valid US 501(c)(3) or equivalent," with application and pre-approval by PayPal | PayPal Business account set up as a Nonprofit Organization, then charity confirmation |
| Stripe | Cards 2.9% + $0.30 (manual entry +0.5%, international +1.5%). ACH Direct Debit 0.8%, capped at $5 | Discounted, not published | Registered nonprofit with tax documents, and 80%+ of Stripe volume from tax-deductible donations | Sign in, then send Stripe support the nonprofit pricing contact form |
| Square | In person 2.6% + 15¢. Online and invoices 3.3% + 30¢ on the free plan (2.9% + 30¢ on paid plans). Keyed 3.5% + 15¢ | None | n/a. Custom rates start above $250,000 in annual sales | n/a. Ask Square sales about custom pricing |
Sources: PayPal merchant fees page (last updated November 4, 2026), Stripe pricing page and nonprofit discount article, Square’s nonprofit page and “Learn about Square fees” help article, all read November 5, 2026. Processors change rates, so check the pricing page before you sign anything.
Does PayPal Give Churches the Nonprofit Rate?
Yes, if PayPal approves the church as a PayPal Confirmed Charity. The terms require “a valid US 501(c)(3) or equivalent” plus proof that the person applying can operate the account, and PayPal’s fee page says the charity rate is “subject to eligibility, application, and pre-approval by PayPal” (verified November 5, 2026).
Nothing on either page excludes churches or religious organizations, which puts PayPal on the friendly side of the line. Compare that with Slack and Airtable, which name churches as ineligible for their nonprofit programs (see the full list in our nonprofit software discounts guide).
Two limits matter. First, the international gift surcharge: a donation from a foreign card or account adds 1.50% on top of the 1.99%. Second, PayPal says the charity rates apply to “certain payment types,” and its terms add that “Not all Payment Types are eligible.” Card processing is priced separately: the charity rate for PayPal’s Advanced Credit and Debit Card Payments is 2.19% + $0.29 (same fee page). Once you’re approved, ask PayPal which of your buttons and checkout flows are billed at the charity rate.
How to Get PayPal’s Charity Rate for Your Church
PayPal’s charity confirmation starts at paypal.com/charities and happens inside a signed-in PayPal Business account, so the steps below past Step 1 come from PayPal’s US help center article “How do I apply for the charity rate?” and its Confirmed Charity terms. I did not open an account to test them.
Step 1: Gather the church’s documents first
Before you touch PayPal, pull together the church’s legal name exactly as the IRS has it, its EIN, the 501(c)(3) proof you’ll use (your own determination letter, or your denomination’s group exemption letter), the church’s bank account details, and a photo ID for the person who will own the account. PayPal’s US help center lists bank account information and proof of identity for the account holder and any authorized users, plus proof that the church “is legally registered with the appropriate regulatory body” and that you represent it.
Common snag: the account holder should be a staff member or officer who will still be at the church in five years, not a volunteer treasurer who rotates off next spring.
Step 2: Open a PayPal Business account and choose “Nonprofit Organization”
Create a PayPal Business account in the church’s legal name. When PayPal asks for the business type, pick “Nonprofit Organization.” PayPal’s help center says charity verification starts there, when you also tick the box stating that the nonprofit is a registered charity.
Common snag: a personal PayPal account that the church has been “borrowing” doesn’t qualify. The charity rate attaches to a Business account set up as a nonprofit.
Step 3: Link the church’s bank account and submit your proof
PayPal’s help center says adding the charity’s bank account can complete the confirmation. If the bank account won’t link, PayPal asks for information about you and the charity instead, which is where your Step 1 documents come in. Upload the 501(c)(3) proof and ID it requests.
Common snag: the name on the bank account, the PayPal account and the IRS paperwork should all match. “Grace Church” on one and “Grace Community Church of Springfield, Inc.” on another is the kind of mismatch that sends an application back for more documents.
Step 4: Wait for PayPal’s confirmation email
PayPal reviews the application and emails you when the church is granted confirmed charity status. The Confirmed Charity terms take effect only on approval, so gifts processed before that email are billed at the standard rate. PayPal’s US pages don’t publish a review time, and its regional help pages give different ones, so plan your launch announcement after the email, not before.
Step 5: Check the fee on your first donation
Open the first gift in your PayPal activity and look at the fee line. On a $100 domestic donation at the charity rate, the fee should be $2.48 (1.99% + $0.49). If you see $3.38, you’re still on the standard Donate button rate, and it’s time to call PayPal.
What Are Stripe’s Nonprofit Rates, and Do Churches Qualify?
The Stripe nonprofit discount exists, but Stripe does not publish the rate; you learn it after you apply. A church qualifies if it’s a registered nonprofit with valid tax documents in a supported country (the US is one) and “at least 80% of your Stripe payment volume comes from tax-deductible donations” (Stripe support article, verified November 5, 2026).
That 80% test is where churches trip. Stripe says membership fees, tuition, ticket sales, registration fees and auction payments do not count as donations. Tithes and offerings count. Youth camp deposits, conference tickets, VBS registration, preschool tuition and the silent auction at the fall festival do not.
Stripe also says the discount “applies only to accounts used primarily for receiving donations, not for selling products or tickets,” and that by accepting the rate, your church agrees to use the account mainly for donations. Religion appears nowhere on the page.
Step 1: Run the 80% test on your last 12 months
Export your Stripe payments and sort them into donations and everything else. If camp, events and the bookstore push non-donation volume above 20%, move those payments to a different tool before you apply.
Step 2: Gather what Stripe asks for
Stripe’s article lists five items: your Stripe account ID, the email registered to the account, a statement that over 80% of your volume comes from tax-deductible donations, your EIN or IRS confirmation letter for 501(c)(3) status, and tax-exempt documentation.
Step 3: Sign in to the right account and open the contact form
Stripe says clicking the contact form link prompts you to sign in, and you should use the credentials for the account you want discounted. If your church has more than one Stripe account (one for giving, one for the conference), sign in to the giving account. New to Stripe? Create the account, finish activation, then come back to the support article and sign in.
Step 4: Submit, then confirm the new rate in writing
Send the form with your documents attached. The article gives no review timeline. When Stripe approves you, get the discounted rate in writing and check it against your next payout report.
Does Square Have a Nonprofit Rate?
No. Square has a nonprofit page, but the page lists standard pricing: “Pay 2.6% + 15¢ per swipe, dip, or tap,” and 3.3% + 30¢ per invoice (Square nonprofit page, verified November 5, 2026). There is no application, no charity tier and no discount for 501(c)(3) status.
Square still earns a place in some churches: a card reader at the book table or the youth fundraiser, where 2.6% + 15¢ in person beats Square’s own online rates. Square’s help article lists online payments at 3.3% + 30¢ on the free plan and 2.9% + 30¢ on its paid plans, and says custom rates are available once annual sales pass $250,000.
What Does Processing Cost on a $100 Gift and a $10,000 Month?
On a $100 card gift, PayPal’s charity rate costs $2.48, Stripe’s standard rate $3.20 and PayPal’s standard Donate button $3.38. On $10,000 a month, PayPal’s charity rate saves a church about $90 a month against PayPal’s standard rate, or $1,080 a year. The math below is my estimate from published rates, not a quote from any processor.
Estimate: assumptions (mine, not any processor's)
- US donors paying with US cards (or bank accounts, for the ACH row)
- $10,000 a month arrives as 100 gifts of $100
- Published rates as of November 5, 2026. Stripe's nonprofit rate is private, so it has no row
| Rate | $25 gift | $100 gift | $10,000 month | Per year |
|---|---|---|---|---|
| PayPal charity, 1.99% + $0.49 | $0.50 + $0.49 = $0.99 | $1.99 + $0.49 = $2.48 | $199 + (100 × $0.49) = $248 | $2,976 |
| PayPal Donate button, 2.89% + $0.49 | $0.72 + $0.49 = $1.21 | $2.89 + $0.49 = $3.38 | $289 + $49 = $338 | $4,056 |
| Stripe card, 2.9% + $0.30 | $0.73 + $0.30 = $1.03 | $2.90 + $0.30 = $3.20 | $290 + (100 × $0.30) = $320 | $3,840 |
| Stripe ACH Direct Debit, 0.8% (cap $5) | $0.20 | $0.80 | 100 × $0.80 = $80 | $960 |
| Square online, free plan, 3.3% + $0.30 | $0.83 + $0.30 = $1.13 | $3.30 + $0.30 = $3.60 | $330 + $30 = $360 | $4,320 |
| Square in person, 2.6% + $0.15 | $0.65 + $0.15 = $0.80 | $2.60 + $0.15 = $2.75 | $260 + $15 = $275 | $3,300 |
Cents rounded to the nearest penny. International gifts cost more on all three: PayPal adds 1.50% to the charity rate and Stripe adds 1.5% to its card rate.
PayPal’s $0.49 fixed fee is higher than the $0.30 Stripe charges, so the charity rate’s edge shrinks on small gifts. On a $25 gift, PayPal’s charity rate beats Stripe’s standard card rate by four cents, and below about $21 Stripe’s standard rate is cheaper. If your church sees lots of $10 and $20 gifts, the fixed fee matters more than the percentage.
The bigger lever is bank transfers. Moving that same $10,000 month to Stripe’s ACH Direct Debit costs $80 instead of $248 on PayPal’s charity rate.
On $10,000 a month, PayPal's charity rate saves a church about $90. Moving those same gifts from Stripe card payments to Stripe bank transfers saves $240. Apply for the nonprofit rate, but make bank giving the default first.
Should My Church Use PayPal, Stripe, or a Church Giving Platform?
For most churches, a church giving platform should be the main way people give, and PayPal or Stripe should be a side door. Neither processor comes with recurring-giving pages built for a congregation, year-end giving statements or a sync to your church management software.
Price matters less than people think in that decision. Planning Center Giving, for example, publishes 2.15% + $0.30 per US card gift and $0.30 per bank gift (verified September 25, 2026 in our giving platform comparison). That’s $2.45 on a $100 card gift, three cents under PayPal’s charity rate, with no charity application. It does add a monthly fee once you pass 10 donations a month. I compared 12 church giving platforms on card fees, bank fees and monthly cost in the best online giving platforms for churches, so I won’t repeat that work here.
Where PayPal earns its keep: some of your people already have PayPal accounts and will give faster with it than with a card form. A PayPal option on your church giving page, at the charity rate, serves them without becoming your whole giving system. Stripe makes sense when a developer or your website platform already runs on it and almost everything you collect is a donation.
Whatever you pick, plan for the bookkeeping. Each processor pays out in batches net of fees, and your treasurer will need to record the gross gift and the fee separately. Our church accounting software guide and QuickBooks for nonprofits cover that side.
If You Get Rejected
Most stalled applications come from paperwork that doesn’t match, not from the church being ineligible. Neither PayPal nor Stripe publishes a list of rejection reasons, so the table below maps each requirement they do publish to the fix.
| Processor | What stalls it | The fix |
|---|---|---|
| PayPal | The church has no 501(c)(3) letter of its own because it's automatically exempt | Use your denomination's group exemption letter, or file Form 1023 for your own letter. Ask PayPal whether "or equivalent" covers a group exemption letter before you apply. Details in proving your church's nonprofit status |
| PayPal | Personal account, or a Business account not set up as a Nonprofit Organization | Open a Business account in the church's legal name and pick "Nonprofit Organization" |
| PayPal | Bank account won't link, so PayPal asks for more information about you and the church | Use the church's own bank account in its legal name, and have the 501(c)(3) proof and the account holder's ID ready to upload |
| Stripe | Under 80% of volume is tax-deductible donations | Move camp, conference, tuition and event payments off the giving account, then reapply |
| Stripe | Missing EIN or IRS confirmation letter | Send the EIN or IRS 501(c)(3) letter plus tax-exempt documentation with the form |
| Stripe | Request sent from the wrong Stripe account | Sign in with the credentials of the giving account, since the form applies to the signed-in account |
| Both | Church name differs across the account, the bank and the IRS records | Use the exact legal name from your IRS or denominational paperwork everywhere |
One more point: in the US, neither PayPal nor Stripe names Goodstack or TechSoup as its validator, the two services behind Google, Canva, Zoom and QuickBooks discounts for churches. Approval at one of those doesn’t carry over, and a rejection at one doesn’t count against you here. If you want the full map of who verifies what, see what Goodstack is and TechSoup for churches.
Frequently Asked Questions
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Related Guides
- Nonprofit software discounts for churches: every program, which ones accept churches, and which ones don’t
- How to prove your church’s nonprofit status: group exemption letters, Form 1023 and what vendors accept
- Best online giving platforms for churches: 12 platforms compared on card fees, bank fees and monthly cost
- QuickBooks for nonprofits: how churches get QuickBooks Online through TechSoup
- What is Goodstack?: the validator behind Google, Canva and Zoom’s nonprofit programs
- Your church giving page: how to build the page your donors actually land on
