Stripe vs Merchant Account: What’s the Difference?

by | May 13, 2023 | merchant account | 0 comments

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Stripe vs Merchant Account

Stripe vs merchant account are both ways for businesses to accept credit cards online. While they are often used interchangeably, there are some important differences. So read this blog to know about stripe vs merchant account. Choose the one that suits your business much better.

Stripe is a Payment Processor – Stripe vs Merchant Account

Stripe is a payment processor. That means it’s an alternative to a merchant account, but not exactly the same. A merchant account allows you to accept credit card payments in person. On the other hand, Stripe only allows you to accept online payments via website or app.

Stripe makes it easy for e-commerce businesses and online retailers to accept credit card payments. No need to deal with all of the complexities associated with setting up and managing your own merchant account.

Merchant accounts are bank accounts for online businesses – Stripe vs Merchant Account

Merchant accounts are bank accounts for online businesses. Using a Merchant account you accept credit card payments. Merchants often use merchant accounts if they sell more than $1 million in annual sales. The limitation is about the minimum amount of revenue required to open one.

Stripe is used as an alternative to merchant accounts for some businesses

Stripe is a payment processor, not a bank. While it’s easy to confuse Stripe with a merchant account, there are some major differences. Acquiring a merchant account involves opening an account with a local bank and setting up business information on the system. This allows you to accept credit card payments online or through technology like Square.

Stripe merchants can be used as an alternative for some businesses. The business does not need to be the full functionality of an acquiring bank. 

Merchant accounts often have lower fees than Stripe

One of the biggest differences between a Stripe vs merchant account is that the former has higher fees than the latter. With Stripe, you’ll be paying 2.9% plus $0.30 per transaction. This can add up quickly if your business is doing high volumes of sales. It’s more cost-effective to pay monthly fees and higher interest rates on credit cards than it is to give all that money away.

While merchant accounts don’t have recurring monthly fees like Stripe does (and they also tend to have better rates). 

Merchant accounts do come with some downsides as

  • It requires an application process before opening one up with your bank or processor; 
  • It might not allow certain types of businesses, and there may be other requirements.

Stripe has no recurring fees, monthly costs are often higher with merchant accounts. Stripe is a payment processor and the only one you’ll need for your business, it doesn’t provide an account for your company to store money and make payments from. Instead of having its own bank account as other payment processors do, Stripe uses third-party banks. 

Merchant accounts are designed specifically for businesses where one’s own bank account is required. It helps to accept credit cards online or over the phone. This means you can use your merchant account’s routing number. It also offers additional features like reporting tools so that you can track sales trends over time without having to pay extra monthly charges just because they’re available through another provider’s product line!

Read here more about Stripe Merchant Account

If you want to accept credit card payments as a business, choose a merchant account that meets your needs and budget. Merchant accounts offer different features and pricing plans, so it’s important to understand the difference between them before choosing one.

For example, Stripe offers flexible pricing plans based on the number of transactions processed each month. The downside is that these fees can add up quickly if you have high transaction volume or large amounts due at once-in which case it might be better for you to go with an annual plan from another provider who charges less per transaction but has higher fees overall.


Stripe vs merchant account are both great ways to accept credit card payments. Stripe is a payment gateway providers that allows you to accept payments without a bank account or monthly fees. Merchant accounts give you more control over your finances and have lower fees, but they also charge more upfront costs than Stripe does. If you’re looking for an easy way to process payments online then Stripe may be right for you!

Call +1-800-834-8767 for more information.