Braintree
Braintree is PayPal's developer-focused payment platform. It gives you Stripe-like API quality with built-in PayPal and Venmo checkout. Best for businesses that want to offer multiple payment methods without multiple integrations.
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When to Use Braintree
You should use Braintree if:
- You want cards + PayPal + Venmo in one integration
- You have developers on your team (API required)
- You're targeting millennials/Gen Z (Venmo is popular)
- You need international payment methods
- You want PayPal checkout without paying PayPal's high fees on cards
Skip Braintree if:
- You don't have developers (Stripe or Square are easier)
- You're primarily card-present (Square is better)
- You don't care about Venmo (Stripe is simpler)
- You're doing under $50K/month (Stripe is fine)
Pricing Breakdown
Standard Pricing
| Transaction Type | Rate | Notes |
|---|---|---|
| Credit/debit cards | 2.59% + $0.49 | Higher than Stripe |
| PayPal | 3.49% + $0.49 | Same as PayPal direct |
| Venmo | 3.49% + $0.49 | Same as PayPal |
| International cards | 3.99% + $0.49 | +1.4% surcharge |
| Disputes | $15 | Win or lose |
Volume Pricing
Braintree offers custom pricing at higher volumes:
- Threshold: $250K+/month
- Discount: 0.1-0.4% off standard rates
- Negotiation required: You must ask
Hidden Costs
| Fee | Amount | When It Applies |
|---|---|---|
| Monthly fee | $0 | No monthly minimum |
| Setup fee | $0 | Free to start |
| Gateway fee | $0 | Included |
| Advanced fraud | $0.05/transaction | Optional (Braintree Advanced Fraud Tools) |
| Account updater | $0.10/card | Automatic card updates |
Effective rate for most SMBs: 3.0-3.5% all-in (blended across cards + PayPal).
What Braintree Does Well
1. Multiple Payment Methods, One Integration
Braintree includes in one SDK:
- Credit/debit cards
- PayPal
- Venmo
- Apple Pay / Google Pay
- ACH (via Plaid)
Reality: Instead of integrating Stripe + PayPal button + Venmo separately, you integrate Braintree once.
Time saved: 20-40 hours of development (vs integrating 3 separate systems).
2. Developer Experience
Braintree's API is better than PayPal's:
- Clear documentation
- Modern SDKs (Node, Python, Ruby, PHP, Java, .NET)
- Reliable webhooks
- Good error messages
Still not as good as Stripe, but significantly better than PayPal's clunky legacy API.
3. Venmo Checkout
Braintree is the only way to accept Venmo on your website:
- Venmo button in checkout
- One-touch for Venmo users
- Popular with under-35 demographics
Conversion boost: 5-10% of customers choose Venmo when offered.
4. PayPal Without the Pain
Get PayPal checkout without PayPal's terrible developer experience:
- Same PayPal button
- Same PayPal conversion lift
- Better API for developers
Best of both worlds for technical teams.
What Braintree Does Poorly
1. More Expensive Than Stripe for Cards
Card processing comparison:
- Braintree: 2.59% + $0.49
- Stripe: 2.9% + $0.30
Wait, Braintree looks cheaper? No. The fixed fee makes Braintree more expensive:
$100 transaction:
- Braintree: $3.08
- Stripe: $3.20
- Braintree saves $0.12
But $50 transaction:
- Braintree: $1.79
- Stripe: $1.75
- Braintree costs $0.04 more
Average across typical e-commerce ($50-$100 AOV): Braintree is 5-15% more expensive for cards.
2. PayPal/Venmo Transactions Are Expensive
When customers choose PayPal/Venmo:
- Rate: 3.49% + $0.49
- This is 20-40% more expensive than card processing
At 20% PayPal/Venmo usage:
- 80% cards at 3.08% effective
- 20% PayPal at 3.98% effective
- Blended: 3.26% effective
Compare to Stripe + PayPal button: Similar cost, more flexibility.
3. Still Owned by PayPal
Braintree was acquired by PayPal in 2013:
- Same risk policies as PayPal (conservative)
- Account holds happen (though less frequent than PayPal)
- Support quality is better than PayPal but still mediocre
The PayPal baggage comes with Braintree.
4. Smaller Features vs Stripe
Braintree lacks some Stripe features:
- Subscription billing (exists but less mature)
- Revenue recognition tools
- Extensive marketplace integrations
- Tax calculation features
Stripe's ecosystem is bigger.
Pricing Comparison (Braintree vs Stripe + PayPal)
Option 1: Braintree (All-in-One)
$100K/month, 80% cards, 20% PayPal:
- Cards: $80K × 3.08% = $2,464
- PayPal: $20K × 3.98% = $796
- Total: $3,260/month
Option 2: Stripe + PayPal Button
Same $100K/month, 80% cards, 20% PayPal:
- Cards via Stripe: $80K × 3.2% = $2,560
- PayPal button: $20K × 3.98% = $796
- Total: $3,356/month
Braintree saves $96/month by having slightly better card rates.
Trade-off: Braintree = one integration, Stripe + PayPal = two integrations but more flexibility.
Who Braintree Is Best For
Perfect Fit
| Business Type | Why Braintree Wins |
|---|---|
| Online marketplaces | Multi-vendor, split payments |
| Subscription businesses | Cards + PayPal in one billing system |
| Millennial/Gen Z audience | Venmo checkout |
| Developer-led teams | Want better API than PayPal |
| Multi-method checkout | Cards + PayPal + Venmo + Apple Pay |
Poor Fit
| Business Type | Better Alternative |
|---|---|
| Card-only | Stripe (better features, similar price) |
| Card-present retail | Square (better POS) |
| Non-technical | Square or PayPal (easier setup) |
| Price-sensitive | Helcim (cheaper for cards) |
| High-volume | Stripe or Adyen (better negotiation) |
Common Gotchas
1. Fixed Fee on Small Transactions
The $0.49 fixed fee hurts on low-ticket items:
$20 transaction:
- Braintree: 2.59% + $0.49 = $1.01 (5.05% effective)
- Stripe: 2.9% + $0.30 = $0.88 (4.4% effective)
At 1,000 small transactions/month: Extra $130/month.
Avoid Braintree if your average order value is under $30.
2. PayPal Account Holds Still Possible
Braintree is owned by PayPal, same risk policies:
- High-ticket transactions may be held
- Sudden volume spikes trigger review
- Account freezes happen (less common than PayPal direct)
You're not immune to PayPal's aggressive risk management.
3. Venmo Is US-Only
Venmo only works for US customers:
- International customers can't use Venmo
- If 50%+ of your customers are international, Venmo value drops
Check your customer geography before committing for Venmo access.
4. Subscription Billing Is Less Mature
Braintree has subscription features but they're limited vs Stripe:
- Proration is manual
- No usage-based billing
- Simpler dunning logic
For complex subscription businesses: Stripe Billing is better.
Test to Run
Braintree ROI calculator (deciding vs Stripe):
Week 1: Payment method mix
- Check your current payment method split:
- Cards: ____%
- PayPal: ____%
- Would use Venmo: ____% (estimate)
Week 2: Cost modeling 2. Calculate Braintree cost:
- Cards: volume × 3.08%
- PayPal: volume × 3.98%
- Calculate Stripe + PayPal cost:
- Cards: volume × 3.2%
- PayPal: volume × 3.98%
Week 3: Integration time 4. Estimate:
- Braintree integration: 20-40 hours
- Stripe + PayPal: 30-50 hours
- Time saved: 10-20 hours
- Savings: 10-20 hours × dev rate
Success criteria: If Braintree saves money + time vs Stripe + PayPal, use it. Otherwise, stick with Stripe.
Scale Callouts
Under $100K/month:
- Braintree and Stripe cost roughly the same
- Choose based on payment methods needed
- If you want Venmo: Braintree
- If cards only: Stripe
$100K-$500K/month:
- Cost difference is small ($50-200/month)
- Feature set matters more than price
- Venmo value depends on your audience
Over $500K/month:
- Negotiate with both Braintree and Stripe
- Compare custom pricing
- Factor in payment method mix
Over $1M/month:
- Both will negotiate
- Consider Adyen if global
- Multi-processor strategy recommended
Where This Breaks
-
Card-only businesses pay more: If you don't need PayPal/Venmo, Stripe is cheaper for card processing.
-
Low average order value: The $0.49 fixed fee makes Braintree expensive for transactions under $30.
-
Complex subscriptions: Stripe Billing is more mature for usage-based, metered, or complex proration scenarios.
-
Enterprise needs: At very high volumes, Adyen offers better rates and features than Braintree.
-
Non-US Venmo: Venmo is US-only, so international merchants don't get the Venmo benefit.
Braintree vs Stripe: Summary
| Factor | Braintree | Stripe |
|---|---|---|
| Card rate | 2.59% + $0.49 | 2.9% + $0.30 |
| PayPal/Venmo | Included | Separate integration |
| API quality | Good | Excellent |
| Subscription billing | Basic | Advanced |
| Documentation | Good | Excellent |
| Support | Email (decent) | Email (good) |
| Best for | Multi-method checkout | Card-focused, subscriptions |
Choose Braintree if: You need Venmo or want cards + PayPal in one integration Choose Stripe if: You're card-focused or need advanced subscription features
Next Steps
Considering Braintree?
- Read Braintree documentation to gauge complexity
- Compare to Stripe for your use case
- Estimate Venmo uptake for your audience
Already on Braintree?
- Check payment method split (cards vs PayPal vs Venmo)
- Calculate if you'd save money routing cards through Stripe
- Optimize for Venmo conversion if that's why you chose Braintree
Switching from Braintree?
- Most switch to Stripe for lower card fees
- Add PayPal button separately if needed
- Evaluate if losing Venmo hurts conversion
See Also
- Stripe - Primary competitor
- PayPal - Parent company
- Processor Comparison - Full comparison
- Buying Payments - Selection framework
- Digital Wallets - PayPal, Venmo, Apple Pay
- Checkout Conversion - Payment method optimization