What fees are associated with a personal GitHub Sponsors account linked to Stripe Connect?

[0xdevalias]

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I was wondering if anyone could give me a bit more clarity around what fees are associated with receiving sponsorships on a personal GitHub Sponsors account linked to Stripe Connect?

Looking at the docs, I can see that:

• https://docs.github.com/en/sponsors/receiving-sponsorships-through-github-sponsors/about-github-sponsors-for-open-source-contributors#sponsorship-payouts

  • GitHub Sponsors does not charge any fees for sponsorships from personal accounts, so 100% of these sponsorships go to the sponsored developer or organization. GitHub Sponsors charges a fee of up to 6% for sponsorships from organization accounts. The 6% fee is split between the following:

    • 3% credit card processing fee
    • 3% GitHub service processing fee

    Organizations can save the 3% credit card processing fee by switching to invoiced billing for sponsorships.

Which also seems to be somewhat mirrored in the 'GitHub Sponsors Additional Terms':

• https://docs.github.com/en/site-policy/github-terms/github-sponsors-additional-terms#22-fees

  • 2.2 Fees

    An additional service fee (“Service Fee”) of 3% per transaction will be deducted from Sponsor’s account to cover GitHub’s administrative costs associated with offering the Program. If payment is made via credit card, an additional 3% fee will be applied.

So for a sponsorship from a personal account, I would expect there to be no fee there.. but then I wonder what fees apply on the Stripe connect side of things.

Looking at the Stripe Connect docs, it seems there are 2 options:

• https://support.stripe.com/questions/monetizing-payments-with-stripe-connect

  • Option 1: Stripe handles pricing and collects processing fees from your connected accounts

    • Stripe collects processing fees from your connected accounts on each transaction, sets pricing for different payment methods and countries, and pays interchange costs.

    • This option would obviously be the simplest one for GitHub to choose, but would give them less control.

  • Option 2: You handle pricing and collect processing fees from your connected accounts

    • Your platform is responsible for processing fees from Stripe. You may set pricing for different payment methods and countries and collect fees from your users on a per transaction basis.

    • This option would be more involved for GitHub to choose, but would mean that they could set their own transaction fees, which (at least in theory) might mean they could set no fee for a payment from a personal account (as an example).

Assuming for now that they went with the simpler 'option 1', I believe that would mean the standard Stripe pricing would apply; and clicking through my GitHub sponsors form, it looks like only card payments may be possible, which means fees on the Stripe side of things would probably be something like:

• https://stripe.com/pricing

  • 2.9% + 30¢ per successful charge for domestic cards

• https://stripe.com/connect/pricing#:~:text=You%20handle%20pricing-,International%20and%20country%2Dspecific%20fees,-Fees%20by%20country

  • Fees by country are listed below for accounts where your platform sets payments pricing. If currency conversion is required, an additional fee will apply: 1% for US accounts and 2% for non-US accounts. You can also choose to give your users more flexibility on what currency they settle and pay out in using alternative currency payouts for an additional 1% fee of the payout amount. Processing fees will vary based on the currency you select for settlement and pay out of your transactions.

So based on all that, my attempt to figure out the fees for a US personal account sponsorship to me in Australia, and any payment/currency conversion/payout fees looks like it might be:

• 2.9% + ?US?$0.30 payment fee
• 2% currency conversion
• 1% Cross-border transfers
• AU$0.25 + 0.25% payout

So adding all that up, it looks like it would be:

• 2.9+2+1+0.25 = 6.15% + ?US?$0.30 + AU$0.25 in fees (from a personal account)
• And then maybe another 6% on top of that if the sponsorship comes from an organization account

Does that sound right? Or have I made some mis-assumptions/mis-calculations somewhere along the way?

[0xdevalias]

I also asked ChatGPT 4o 'Deep Research' mode to contrast GitHub Sponsors through Stripe Connect with PayPal, and it seemed to suggest that Stripe Connect would end up better (though as always, take AI generated content with a grain of salt, and do your own validation):

• https://chatgpt.com/share/67cf874c-0260-8008-a188-9a6891fcac39
  • Details

    I'll compare the account and currency conversion fees for a US person sending payments to an Australian recipient in AUD through GitHub Sponsors (via Stripe Connect) and PayPal. This will include an analysis of:

    • Transaction fees on both platforms
    • Currency conversion fees
    • Any additional fees that may apply (e.g., withdrawal fees)
    • Potential impact based on payment method (bank transfer, credit card, etc.)

    I’ll let you know once I have a detailed comparison ready.

    GitHub Sponsors (Stripe) vs. PayPal – Fee Comparison (USD→AUD)

    1. Transaction Fees (Cross-Border Payments)

    • GitHub Sponsors (via Stripe Connect): GitHub itself charges no platform fee (100% of the sponsorship goes to the developer). The only costs are Stripe’s payment processing fees. For an international transaction (US card to an Australian account), Stripe’s standard fee (~2.9% + US$0.30) applies, plus an extra cross-border card fee (1.5%) ([Guide to Stripe Fees & Rates For 2025](https://www.swipesum.com/insights/guide-to-stripe-fees-rates-for-2025#:~:text=,businesses%20from%20using%20their%20products)). In total, expect roughly 4.4% of the transaction amount **(+$0.30)** to be taken by Stripe for a USD→AUD payment. (Stripe’s base online rate is 2.9%+30¢, and they add ~1.5% for an international card) ([Guide to Stripe Fees & Rates For 2025](https://www.swipesum.com/insights/guide-to-stripe-fees-rates-for-2025#:~:text=,businesses%20from%20using%20their%20products)). GitHub does not take any cut on top of this ([>GitHub will not charge fees for GitHub Sponsors. And to celebrate the launch, w... | Hacker News](https://news.ycombinator.com/item?id=19991456#:~:text=rurban%20%20%2034%20,%E2%80%93)).
    • PayPal (Cross-Border): PayPal’s commercial transaction fee in Australia is about 2.6% + AU$0.30 for domestic payments ([PayPal Nonprofit Fees: How Much Does PayPal Take From Donations? | DoJiggy](https://www.dojiggy.com/blog/paypal-nonprofit-fees-how-much-does-paypal-take-from-donations/#:~:text=Similarly%2C%20in%20Australia%2C%20PayPal%20charges,30%20per%20transaction)). For cross-border transactions (US to AU), PayPal adds an additional 1% international fee ([PayPal Fees for Sellers (Business) | PayPal AU](https://www.paypal.com/au/business/paypal-business-fees#:~:text=match%20at%20L192%20Fee%20Table%3A,QR%20Code%20Transactions%20%2B1.00)). This brings the PayPal fee to roughly 3.6% + AU$0.30 for the payment itself. In other words, an Australian recipient receiving a payment from the US via PayPal will lose about 3.6% of the amount to PayPal’s transaction fees (not including conversion) ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=payment%20method.%20Usually%20around%202.6,4)). (PayPal’s base rate in AU is 2.6%+A$0.30, and cross-border payments incur +1.0% ([PayPal Fees for Sellers (Business) | PayPal AU](https://www.paypal.com/au/business/paypal-business-fees#:~:text=match%20at%20L192%20Fee%20Table%3A,QR%20Code%20Transactions%20%2B1.00)), totaling ~3.6% + A$0.30.)

    2. Currency Conversion Fees (USD→AUD)

    • GitHub Sponsors (Stripe): Payouts to Australian developers are converted from USD to AUD at Stripe’s exchange rate when the funds are transferred. Stripe uses a rate close to the mid-market rate and charges a conversion fee of about 2% on the amount for non-US accounts ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=Fees%20by%20country%20are%20listed,pay%20out%20of%20your%20transactions)). This 2% foreign exchange fee is on top of the transaction fees above. (Stripe applies ~2% fee for currency conversion on payouts to local currency ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=Fees%20by%20country%20are%20listed,pay%20out%20of%20your%20transactions)).) In practice, the conversion rate offered by Stripe is usually very competitive (far better than PayPal’s), since it’s essentially mid-market minus 2% ([Currency conversions | Stripe Documentation](https://docs.stripe.com/currencies/conversions#:~:text=When%20Stripe%20provides%20currency%20conversion,detailed%20on%20our%20pricing%20page)) ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=Fees%20by%20country%20are%20listed,pay%20out%20of%20your%20transactions)). There are no other hidden conversion charges by GitHub/Stripe.
    • PayPal: PayPal’s currency conversion is notably more expensive. PayPal typically adds about 3.5–4.0% on top of the wholesale USD→AUD exchange rate as a currency conversion charge ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=Buying%20something%20internationally%20%20For,rate%20for%20all%20other%20currencies)) ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=For%20some%20uses%20of%20your,0)). This means if a US sender funds the payment in USD and the Australian recipient converts it to AUD in PayPal, the rate will be ~4% worse than the real exchange rate. For example, PayPal’s AUD conversion rate might be ~4% lower than the market rate for USD/AUD ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=Buying%20something%20internationally%20%20For,rate%20for%20all%20other%20currencies)). This conversion fee is applied whenever PayPal converts currency (either during the payment if the sender pays in AUD, or when the recipient withdraws USD balance to an AUD account) ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=For%20some%20uses%20of%20your,0)). In short, PayPal’s FX fee (~3–4%) is roughly double the Stripe FX fee (2%) for USD→AUD.

    3. Additional Fees (Withdrawal and Miscellaneous)

    • GitHub Sponsors/Stripe: Payouts from GitHub Sponsors are delivered via Stripe Connect directly to the developer’s bank account. There is no separate withdrawal fee to transfer the funds to an Australian bank in local currency. Standard Stripe payouts to Australian banks are free on the default schedule (in some cases Stripe’s platform may charge a nominal A$0.25 per payout, but GitHub appears to cover ordinary payout costs) ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=No%20fee%20A%240,bank%20account%20or%20debit%20card)). In practice, developers receive their sponsorship in AUD via local bank transfer without any extra charge beyond the processing and conversion fees noted above. There are also no monthly fees or setup fees. (GitHub may impose a minimum payout threshold, but no fee is taken for normal bank transfers.)
    • PayPal: With PayPal, withdrawing funds to an Australian bank account in AUD is generally free if the funds are already in AUD. However, if the funds are in USD, PayPal will convert them to AUD upon withdrawal using the marked-up rate (incurring the ~3-4% currency spread as described) ([PayPal Fees for Australia: A Full Guide 2025 - The Currency Shop](https://www.thecurrencyshop.com.au/guides/paypal-fees#:~:text=%2A%20Up%20to%203,held%20in%20a%20foreign%20currency)). There is no fixed withdrawal fee for standard bank transfers; PayPal’s profit comes from the conversion spread. PayPal does offer an instant withdrawal to a linked card, but this carries a 1% fee (optional, for faster access) ([PayPal Fees for Australia: A Full Guide 2025 - The Currency Shop](https://www.thecurrencyshop.com.au/guides/paypal-fees#:~:text=Withdraw%20to%20a%20linked%20card)). Aside from currency conversion, PayPal’s other potential fees include any applicable cross-border fixed fees (already included in the 3.6%+A$0.30 above) and, if sending as a Goods/Services payment, those are borne by the receiver. In summary, for a normal transfer of PayPal balance to an Australian bank, PayPal doesn’t charge a flat fee, only the conversion markup if currency exchange is needed ([PayPal Fees for Australia: A Full Guide 2025 - The Currency Shop](https://www.thecurrencyshop.com.au/guides/paypal-fees#:~:text=%2A%20Up%20to%203,held%20in%20a%20foreign%20currency)).

    4. Impact of Payment Methods (Bank Transfer vs Credit/Debit Card)

    • GitHub Sponsors (Stripe): GitHub Sponsors currently supports credit and debit card payments (processed via Stripe). There’s no option for the sender to pay via direct bank transfer or ACH through the GitHub interface – it’s card-based funding only. Stripe’s fee to the developer remains the same regardless of whether the sponsor uses a credit or debit card. (Stripe’s flat rate covers any Visa/Mastercard/Amex, so using a debit card doesn’t reduce the fee on the receiver’s side under standard pricing ([Guide to Stripe Fees & Rates For 2025](https://www.swipesum.com/insights/guide-to-stripe-fees-rates-for-2025#:~:text=,businesses%20from%20using%20their%20products)).) The sender isn’t charged extra by GitHub; the fees are deducted from the payout to the developer. In short, all GitHub Sponsor payments are treated like card transactions, and there’s no cheaper “bank” option for the sender on that platform.
    • PayPal: PayPal allows multiple funding methods, and the choice can affect fees:
      • Sending via Credit/Debit Card – If a US user sends money funded by a card, PayPal may charge additional fees to cover the card processing. For personal payments (Friends & Family), the sender pays 2.6% + $0.30 USD extra on top of a base fee ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)). (For example, sending an international personal payment funded by card incurs 5% + a 2.6% card fee) ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)). For business transactions (Goods/Services or Donations), the receiver pays the standard ~3.6% + fixed fee, and this rate already factors in card processing – the buyer isn’t directly charged extra, but the seller’s fee is higher than domestic to account for it ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=payment%20method.%20Usually%20around%202.6,4)). Bottom line: funding with a card doesn’t change the ~3.6%+ fixed fee that the seller (recipient) pays, but if it’s a personal transfer the sender will incur a card funding fee ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)).
      • Sending via Bank Account or PayPal Balance – Using a linked bank account or PayPal balance to fund the payment avoids the additional card fee. For a Friends & Family transfer from US to Australia, PayPal charges a flat 5% fee (capped at $5.99 USD) when using balance/bank, with no extra percentage for cards ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)). This can be cheaper for large personal payments (e.g. sending $1000 via bank costs $5.99). However, this method is typically for personal transfers; it does not provide buyer protection and isn’t intended for commercial transactions. For a business payment (like donating via a PayPal donate link or paying an invoice), the sender’s funding source doesn’t change the fee that the receiver pays – the merchant will still pay ~3.6% + $0.30, and the currency conversion will still apply if applicable. The key difference is that if the sender pays in a different currency than the receiver’s currency, PayPal will perform a conversion either on the sender’s side or upon receipt, incurring that ~3-4% forex fee in either case.
      • Summary: PayPal gives flexibility to use bank, balance, or cards. Using a bank account/balance for cross-border personal payments is usually cheaper (avoids the ~2.6% card surcharge) ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)). Using a credit card can earn the sender points, but it “often means extra fees to pay” with PayPal ([PayPal Fees for Australia: A Full Guide 2025 - The Currency Shop](https://www.thecurrencyshop.com.au/guides/paypal-fees#:~:text=,depending%20on%20the%20transaction%20type)). In contrast, GitHub/Stripe doesn’t offer a no-card option – all payments are essentially card charges.

    5. Which Platform is Cheaper for < AU$1000? – Recommendation

    For amounts under approximately AUD $1000 (or equivalent), GitHub Sponsors (via Stripe) is generally the cheaper option for a US-to-Australia payment in AUD. Here’s why:

    • Lower Fees: The combined fees on GitHub Sponsors are lower. After accounting for Stripe’s processing and conversion, the total fee is around 4.5%–5% of the amount (no extra flat charges beyond ~$0.30). In contrast, PayPal’s total fees for a cross-border payment can be around 7%–8% when you include the ~3.6% transaction fee plus ~3-4% currency conversion markup ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=payment%20method.%20Usually%20around%202.6,4)). This means an Australian developer will receive a larger portion of the money via GitHub Sponsors than via PayPal for the same USD amount sent. For example, on a $500 USD sponsorship, the Stripe fees might come to around $25, whereas PayPal could deduct around $35–$40 in total fees.
    • Transparent Conversion: Stripe’s currency conversion rate is typically more favorable (mid-market minus 2%) ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=Fees%20by%20country%20are%20listed,pay%20out%20of%20your%20transactions)), so the USD→AUD conversion loss is smaller. PayPal’s 3-4% currency spread ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=Buying%20something%20internationally%20%20For,rate%20for%20all%20other%20currencies)) significantly eats into the amount. On sub-$1000 transfers, this difference in exchange rate can save several dollars in favor of Stripe/GitHub.
    • No Platform Cut: GitHub Sponsors currently takes 0% platform commission. The developer receives the full donation minus the necessary Stripe fees ([>GitHub will not charge fees for GitHub Sponsors. And to celebrate the launch, w... | Hacker News](https://news.ycombinator.com/item?id=19991456#:~:text=rurban%20%20%2034%20,%E2%80%93)). PayPal doesn’t take a “platform cut” per se either, but its core fees are higher. GitHub also waived processing fees during promotional periods, meaning at times the developer might get nearly the entire amount. Even outside of promotions, the absence of any additional GitHub fee makes it very cost-effective.
    • Use Case: If the goal is to support an open-source developer, GitHub Sponsors is built for that and passes along as much of your contribution as possible. The only scenario where PayPal could edge out Stripe for cost is if a sender uses a Friends & Family transfer funded by bank balance (capped $5.99 fee) and perhaps coordinates conversion externally – but this is an unofficial workaround and not suitable for most sponsor situations. In a typical case (using PayPal’s standard flow to donate or pay an individual), PayPal will cost more in fees for sub-$1000 amounts.

    Final Recommendation: GitHub Sponsors via Stripe Connect is the cheaper option for sending payments under AU$1000 from the US to Australia in AUD. The Stripe processing fees and conversion rate are more favorable than PayPal’s fees. This means the Australian recipient will receive a higher net amount through GitHub Sponsors. PayPal is convenient and ubiquitous, but its cross-border and currency fees are higher, so if maximizing the funds delivered is the priority, go with GitHub Sponsors for amounts in this range ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=payment%20method.%20Usually%20around%202.6,4)) ([Guide to Stripe Fees & Rates For 2025](https://www.swipesum.com/insights/guide-to-stripe-fees-rates-for-2025#:~:text=,businesses%20from%20using%20their%20products)). The only advantage of PayPal would be if the sender needs to use a funding method not supported on GitHub (or if they are sending a personal gift and can take advantage of PayPal’s capped fee), but purely on fee comparison, GitHub/Stripe wins for sub-$1000 payments.

    Sources: GitHub Sponsors documentation and Stripe pricing (for transaction and FX fees) ([Guide to Stripe Fees & Rates For 2025](https://www.swipesum.com/insights/guide-to-stripe-fees-rates-for-2025#:~:text=,businesses%20from%20using%20their%20products)) ([Pricing information | Stripe Connect](https://stripe.com/au/connect/pricing#:~:text=Fees%20by%20country%20are%20listed,pay%20out%20of%20your%20transactions)), and PayPal’s fee schedule (for cross-border percentages, conversion rates, and funding method differences) ([PayPal fees for Australia: An overview - Wise](https://wise.com/au/blog/paypal-fees-australia#:~:text=payment%20method.%20Usually%20around%202.6,4)) ([PayPal Fees for Customers | PayPal AU](https://paypal.com/au/digital-wallet/paypal-consumer-fees#:~:text=Any%20other%20market%20,from%20the%20table%20below)).

[mecodeatlas]

Hey @0xdevalias! Thanks for reaching 👋

Regarding currency conversion, Stripe applies the daily mid-market exchange rate provided by their service providers and takes an additional 2% fee. You can find more details on this in Stripe's documentation: [Stripe Currency Conversions Guide](https://docs.stripe.com/currencies/conversions).

All sponsorship payments are made in USD, and when the funds are transferred to the maintainer’s linked Stripe account, they are converted to the destination currency (minus the 2% conversion fee). The converted amount is then paid out to the linked bank account in the same currency. If there is any difference between the amount received in Stripe and the amount deposited into the maintainer’s bank account, this is likely due to fees charged by the receiving bank, which GitHub has no control or visibility over.

Hope it helps :)

[0xdevalias]

Thanks for that :)

Does that mean there's no payment surcharge for the subscriber using their card? Or did you leave that out in your explanation above?

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[0xdevalias]

This isn't outdated; and while some attempts towards an answer were provided; they weren't really sufficient.

I have yet to reach the 'new user payout delay'; so I'm unable to provide results from my direct experience here yet to clarify one way or another which of my earlier assumptions / inferences are correct.