Stripe account is a provider of payment services that enable merchants to accept payments made by credit cards, debit cards, and other methods. Because the majority of Stripe’s distinctive features are primarily focused on online sales, the platform is ideally suited for use by companies that generate the majority of their revenue through online transactions.
Stripe: Payments it accepts
• Stripe is a payment processor that enables merchants to accept debit cards in addition to Visa, Mastercard, American Express, Discover, JCB, and Diners Club credit cards. China UnionPay is also supported.
• Mobile wallets and services that allow customers to buy now and pay later can also be used to make payments to businesses. Stripe allows users to make payments using a wide range of currencies.
• A point-of-sale system known as Stripe Terminal is made available by the company so that it can take payments in person.
• Stripe provides a wide variety of additional services, such as automated billing and invoicing, as well as sales tax calculation.
Stripe: Is it a merchant account?
Stripe is not a provider of merchant accounts like other companies. The term “payment service provider” (PSP) refers to what Stripe is, however, the company is also known as a “third-party payment processor.”
A merchant account and a payment service provider perform the majority of the same functions; in fact, the majority of these functions are so similar that the average user may not even realize there is a difference between the two.
Users of Stripe, on the other hand, do not have their own separate merchant accounts. Instead, all of their accounts are combined into a single massive merchant account.
Stripe: How payment works?
- The information about the customer’s card is submitted by the consumer, either in person or online.
- These card details are then passed through Stripe’s payment gateway, where the data is encrypted.
- This information is then sent from Stripe to the acquirer, who is a financial institution that will handle the transaction on the merchant’s behalf.
–Stripe acts as the merchant during this stage of the transaction (with the business owner as a sub-merchant). Because of this, users of Stripe do not need to create a merchant account, which is a step that can be time-consuming and complicated. - The payment is routed to the cardholder’s issuing bank after being processed by a credit card network (like Visa or Mastercard, for example).
- The transaction is either authorized or declined by the issuing bank.
- This signal is sent from the bank that issued the card to the card network, through the acquirer, and finally, through the gateway, to the consumer.
The customer then sees a notification informing them whether or not their payment was approved or refused.
~ This signal is sent from the bank that issued the card to the card network, through the acquirer, and finally, through the gateway, to the consumer. The customer then sees a notification informing them whether or not their payment was approved or refused.
• Customers of Stripe are able to get payouts once the processing of their transactions has been completed (usually around two business days).
Stripe’s payment processor processes the payment in 6 simple steps.
Let us take an insight into the processing of the payment, with Stripe.
• You can also choose the schedule for when payouts are made, if you’d like (daily, weekly or monthly).
Stripe: Transaction-wise charges
2.9% + 30% (for online transactions)
2.7% + 5% (for in-person transactions)
3.4% + 30% (for manually keyed transactions)
3.9% + 30% (for international cards or currency conversion)
Stripe payment gateway: Safety features
Stripe must submit an annual compliance report as well as routine security scans and testing in order to maintain its status as a PCI compliance Level 1 service provider, which the company has been audited and certified to achieve.
Since Stripe encrypts the credit card numbers of all of its clients and stores the information necessary to decode them in a different location, the company is unable to view consumers’ credit card numbers unless additional actions are taken.
Additionally, Stripe requires all online transactions to be conducted over the safer HTTPS network rather than standard HTTP.
Stripe: How to accept payments?
There are, basically, three simple steps to accept payment on Stripe:
- Firstly, create a Stripe account: You can do this by simply entering your name and email address.
- Secondly, grant business details: This will contain the location as well as the organizational structure.
Additionally, Stripe will ask for personal information from you, such as your whole name and birth date.
- Thirdly, link your bank account: After you are done with all the above steps, this is where you’ll receive your payments.
Note: The payments, on the other hand, won’t be available to you right away. In most cases, you won’t be eligible for your first payout until it’s been seven days since you’ve cashed out your initial payment.
In certain fields of work, the duration of time spent waiting can be as long as 14 days.
Stripe: Pros and cons
Although none of Stripe’s products or services can claim to be completely original at this point, the company’s solutions continue to differentiate themselves from those of its rivals in a number of important respects.
Consider the following features as just a few of the numerous benefits that come with using Stripe’s payment system:
PROS:
• Quick and easy onboarding: Stripe is a payment service provider (PSP), which means that in order to approve a full-service merchant account, they do not need to go through a rigorous underwriting procedure.
You can sign up online and be accepted pretty quickly.
• Integrated payment processing system: As part of its business, Stripe provides merchants with both a payment processing solution for credit card transactions and a payment gateway.
It currently offers a single, integrated solution that completely supports retail as well as eCommerce sales channels. This is made possible by its support for countertop credit card terminals as well as point of sale (POS) systems.
• Full set of security features: Although no service provider can provide you with payment security that is foolproof one hundred percent of the time, Stripe comes as close as feasible to meeting this goal.
Every Stripe account comes standard with the majority of the platform’s essential security features, such as TLS (SSL) and encryption, at no additional cost.
You will incur some additional fees if you make use of more complex capabilities, such as the Stripe Radar anti-fraud service.
What about the disadvantages of Stripe?
Even though it has several flaws, Stripe can be an extremely useful tool in the proper hands. Before you join Stripe, here are some things you should think about first.
CONS:
• Complicated setup: In the event that you are not getting a version of Stripe that is already pre-integrated, you will need to do some code in order to get it up and running.
Some firms may not find this to be an appealing quality, despite the fact that it does not provide a challenge for enterprises that have access to sufficient technical resources.
• Expensive fee structure: Many of the more complex capabilities that Stripe offers come with additional charges on a per-transaction basis.
This, in addition to the flat-rate charge, might make scaling up using Stripe rather pricey in some situations.
Stripe: Who uses Stripe?
If you frequently use a credit or debit card, especially to make a purchase online, there is a very good probability that the information from your card has been processed by Stripe’s network. This is especially true if you have made the transaction online.
According to the figures provided by the company, around 90 percent of adults in the United States had shopped at a store that made use of Stripe.
Some famous users of Stripe payment gateway are-
Zoom
Instacart
Shopify
Google
Amazon
Lyft
Slack
The tools offered by Stripe are versatile enough to be of use to both smaller and larger enterprises alike. Additionally, Stripe provides rewards for firms that are charitable organizations. To get the best Stripe Merchant Account contact Your Merchant Services Rep!
