Quick signals
Complexity
Medium
PayPal ecosystem integration adds power but also governance complexity across multiple fee structures
Common upgrade trigger
Established business status enables custom flat rate requests
When it gets expensive
PayPal transaction fees governed by SEPARATE PayPal merchant agreement
What this product actually is
Braintree is PayPal's end-to-end payment platform designed for growth, offering card processing, PayPal/Venmo integration, ACH payments, and fraud tools. Uniquely positioned to leverage PayPal's ecosystem while offering standalone payment processing.
Pricing behavior (not a price list)
These points describe when users typically pay more, what actions trigger upgrades, and the mechanics of how costs escalate.
Actions that trigger upgrades
- Established business status enables custom flat rate requests
- High transaction volume qualifies for IC+ pricing model
- Business complexity (recurring, marketplace) triggers custom rate discussions
- Risk profile improvements unlock better fraud/chargeback tool pricing
- Charity verification unlocks 2.19% + 29¢ discounted tier
When costs usually spike
- PayPal transaction fees governed by SEPARATE PayPal merchant agreement
- AmEx pass-through requires your own American Express merchant account
- Transaction fees NOT refunded for refunded transactions
- Custom pricing gatekept by 'established business' and volume thresholds
- Chargeback/fraud tools priced separately and vary by business risk profile
- Venmo geographic restriction limits US-only businesses
Plans and variants (structural only)
Grouped by type to show structure, not to rank or recommend specific SKUs.
Plans
- Standard Pricing - 2.89% + 29¢ per transaction - Self-serve for all merchants
- Charity Pricing - 2.19% + 29¢ per transaction - Requires 501(c)(3) verification
Plus
- Interchange Plus (IC+) - Interchange + fixed markup - For established businesses with volume
Enterprise
- Custom Enterprise - Volume-based negotiated rates - High-volume or complex business models
Costs and limitations
Common limits
- International cards add 1% surcharge (same pain as Stripe)
- Non-USD currency adds another 1% on top
- Chargebacks cost $15 each with no refund on transaction fees
- ACH returns and disputes add $5 per occurrence
- Chargeback Protection Tools add 0.4%-0.6% per transaction
- Venmo limited to US market only
What breaks first
- International expansion hits dual 1% + 1% surcharge wall
- Chargeback costs spiral for subscription or high-risk verticals
- PayPal fee structure confusion from split governance
- ACH pricing uncompetitive for high-frequency small transactions
- Venmo limitation blocks non-US growth strategies
Decision checklist
Use these checks to validate fit for Braintree before you commit to an architecture or contract.
- Developer Experience vs Simplicity: Assess internal technical capabilities and API integration requirements
- Transparent Pricing vs Cost Variability: Analyze transaction mix (card types, international %, currency conversions)
- Upgrade trigger: Established business status enables custom flat rate requests
- What breaks first: International expansion hits dual 1% + 1% surcharge wall
Implementation & evaluation notes
These are the practical "gotchas" and questions that usually decide whether Braintree fits your team and workflow.
Implementation gotchas
- PayPal/Venmo native integration → Separate fee structures increase complexity
Questions to ask before you buy
- Which actions or usage metrics trigger an upgrade (e.g., Established business status enables custom flat rate requests)?
- Under what usage shape do costs or limits show up first (e.g., PayPal transaction fees governed by SEPARATE PayPal merchant agreement)?
- What breaks first in production (e.g., International expansion hits dual 1% + 1% surcharge wall) — and what is the workaround?
- Validate: Developer Experience vs Simplicity: Assess internal technical capabilities and API integration requirements
- Validate: Transparent Pricing vs Cost Variability: Analyze transaction mix (card types, international %, currency conversions)
Fit assessment
Good fit if…
- Businesses wanting native PayPal and Venmo acceptance
- Merchants with existing American Express merchant accounts (pass-through savings)
- Verified 501(c)(3) charities (2.19% discounted rate)
- Companies processing large ACH transactions (benefits from $5 cap)
- Businesses in PayPal ecosystem seeking integrated solutions
- Growth-stage companies ready for IC+ negotiations
Poor fit if…
- Need Venmo outside the United States (not supported)
- Heavy international payment volume (1% + 1% adds up)
- High chargeback rates in your industry ($15 each)
- Require lowest ACH fees for small transactions (0.75% expensive for small amounts)
- Want transparent pricing without 'established business' gatekeeping
- Need advanced fraud tools without per-transaction add-ons
Trade-offs
Every design choice has a cost. Here are the explicit trade-offs:
- PayPal/Venmo native integration → Separate fee structures increase complexity
- Slightly lower base rate (2.89%) → Same international surcharges as competitors
- Charity discount tier → Requires verification bureaucracy and pre-approval
- ACH $5 cap benefits large transactions → Expensive percentage for small ACH payments
- AmEx pass-through savings → Requires separate AmEx merchant account overhead
Common alternatives people evaluate next
These are common “next shortlists” — same tier, step-down, step-sideways, or step-up — with a quick reason why.
-
Stripe — Same tier / developer-first paymentsCompared when API flexibility and broader ecosystem (Connect, Billing) outweigh PayPal/Venmo integration benefits.
-
PayPal Commerce Platform — Step-sideways / PayPal-centricEvaluated when PayPal brand and consumer checkout simplicity are the primary drivers.
-
Square — Step-down / simplicity-firstConsidered when teams want simpler omnichannel setup without deep API customization.
-
Adyen — Step-up / enterprise paymentsShortlisted at high volume when Interchange++ pricing and enterprise-grade global acquiring become cost-effective.
Sources & verification
Pricing and behavioral information comes from public documentation and structured research. When information is incomplete or volatile, we prefer to say so rather than guess.