Is Stripe needed when we have all the other online payment options? How is it different, and what problem does it solve?
We will explore these and similar questions in this stripe review- CPO and provide you with an answer if you need it for your business.
How Is Stripe Useful?
It’s a full-stack payment processing platform that is primarily developed for online shopping and does not function offline yet. The idea of Stripe was to streamline and simplify the checkout process of online stores.
It also operates as a credit card processing platform for sellers and buyers. For a successful online transaction, a buyer makes the payment via credit card or a bank; Stripe caters to all and transfers the fund into the seller’s account.
It is a safe and secure gateway making it an efficient platform for online stores to incorporate online payments.
Along with easing the payment process, Stripe also protects sellers from fraudulent payments. The mechanism is designed in such a way that it rejects the transaction if there is insufficient balance in the buyer’s account and notifies the buyer to use a different payment method.
For a seller, it is necessary to look out for fraudulent transactions and take prompt action. With the combination of spending limits and other controls, Stripe helps in identifying and blocking such transactions.
Do You Need Stripe?
Let’s take a look at who can use Stripe. It is essential for freelancing and small business owners to streamline their online strategies to consolidate their workloads. The right online payment tools are critical to a successful online business.
Stripe is an easy-to-use and intuitive payment processing system with reliable security, which is available worldwide. It was founded in 2010 by Irish brothers John and Patrick Collison.
The idea was to empower small online businesses to process online payments; however, it’s also used by some big brands such as Lyft, Amazon, Shopify, etc.
If you operate a B2C e-commerce store, B2B platform, provide software service, or have a non-profit or a fundraising platform, Stripe supports them all.
Initially, Stripe required some developer skills to incorporate into the website, but now you can partner with Stripe’s developers to set up the software. The initiative was taken to help as many small online business owners as possible.
What More to Expect From Stripe?
Stripe also offers free API access, which can be used by developers to build a custom checkout directly on their websites. For some businesses, this can be a benefit, as they do not want their customers to have to leave their sites in order to process payments.
Without technical resources, business owners must use other e-commerce solutions if they don’t want to build their own checkout. There are some free of them, while others can cost hundreds of dollars a month to deploy.
- With support for 135 currencies, Stripe can be used by international merchants in 34 countries
- In terms of payment processing, Stripe offers some of the best tools for developers
- Stripe makes sure each transaction is both secured and protected as a top priority for its clients, buyers, and sellers
- Merchants can save buyers’ financial information with Stripe for future purchases
- Purchases on Stripe are subject to fees, just like other e-commerce services.
How Much Stripe Charges per Transaction?
Internet payment processing is prone to fraud; therefore, one of the purposes of Stripe is to ensure security and protection. It allows users to integrate processing tools and plugins easily via API.
It is the reason: it has such a higher transaction cost of 2.9% + $0.30 per transaction, which is similar to any other big name like PayPal. Perhaps businesses that generate more than $80,000 a month in sales are eligible for enterprise volume discounts.
However, non-profit organizations can also receive reduced rates if they have 501c3 status. In the non-profit sector, the standard pricing structure is 2.2% + $0.30.
Although payments made via American Express are subject to a 3.5% fee per transaction, Stripe won’t charge non-profit organizations any fees for the first $15,000 of sales volume. It would save around $420 if the payments are averaged out at $50 each.
Is Stripe Better Than Any Other Payment Processing System?
As a comparison between the two biggest payment processing systems, PayPal and Stripe, both have their advantages. You can get a merchant account and a payment gateway from either of them, as well as everything you need to accept payments online.
Also, both charge an online transaction fee of 2.9% plus $0.30.
The simple setup and easy use of PayPal make it a better choice for small businesses. Whereas, Stripe is a good choice for larger businesses, as they offer more customizations and features.
Furthermore, it incorporates an array of traditionally low-tech, disparate processes into a single, tech-enabled package, providing seamless online payment functionality.
In addition, Stripe has a better developer experience than PayPal. In other words, Stripe will always be customizable and engineers-focused.
Stripe lets you create custom reports that provide you with the exact details you are looking for. Using Stripe Sigma, you can ask SQL questions and receive reports. As a result, Stripe is branded as a white-label service.
Shopify and other major marketplaces use Stripe as a white-label payment processor.
Can You Benefit From Stripe?
Stripe’s products and services are no longer unique, but its solutions still set it apart from its competitors in more than one way.
Here are just a few of the advantages of the Stripe payment system:
- Stripe offers an easy onboarding process for merchant accounts since it is a payment service provider (PSP). Online sign-up is very easy, and you can receive approval very quickly.
- With Stripe as a part of the service, you can process credit card payments as well as use a payment gateway. This solution now fully supports both retail and e-commerce sales channels by offering countertop card terminals and Point of Sale systems.
- Stripe’s developer tools and APIs offer an extensive array of customization options that are accompanied by thorough documentation. To use these features to the full extent, it may need coding skills or developer services.
- With a complete set of security features, Stripe comes the closest to meeting the ideal of 100% payment security. Each Stripe account comes with free security features, including TLS (SSL) and encryption. Additional features, such as Stripe Radar, are available for a small fee.
Bottomline
Stripe may seem an excellent tool for online businesses, but all the features come up with a risk of sudden account holds and freezes. Due to fraud prevention measures, Stripe can hold the money in the reserve account without any notice or warning.
There is an increasing number of complaints regarding reserve and cancellation policies. Hence, it is imperative to read terms and conditions carefully.
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