Upfront summary: Is Stripe worth it?
Stripe is a payment processor that is commonly used for online stores. Stripe allows businesses to accept credit card payments, fast and securely. This means less for the customer to worry about! Stripe is commonly used on websites such as Instacart, Amazon.com, Shopify, Lyft, and more. So, is Stripe safe to use? Yes! Stripe uses SSL protection and encrypts all of its data. The layers of security make for a trustworthy check-out experience at your favorite online store.
Stripe Company Information
| Official Website: | www.stripe.com |
| Founded: | 2009 |
| Owner(s): | Patrick Collison, John Collison |
| Number of Employees: | Approx. 2,800 |
| Revenue: | 7.4 billion USD (2020) |
| Location: | Dublin, Ireland |
| Customer Service Contact: | Must start a chat at www.support.stripe.com |
| Social Media: | Facebook, Twitter, LinkedIn |
What is Stripe?
Stripe is a tech company that provides software for businesses to conduct secure payments from their customers and allows businesses to manage their company more efficiently. Stripe offers security for online transactions, but also in-person transactions for businesses. It’s commonly used for online stores, but can be used either way, depending on the package of services the business buys.
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How does Stripe work?
In basic terms, Stripe offers software for secure and encrypted payments for online stores. Businesses can sign up and be approved very quickly.
For a business to process online transactions, it will need a payment gateway and a payment processor. The gateway transmits customer credit card payments to be processed. The funds that the customer has paid will then be placed temporarily into a merchant account. Stripe can be used as this merchant account. The good thing about Stripe is that they combine their payment gateway and payment processor into a single product, making it easier for the business to conduct credit card transactions.
When shopping online, customers should be conscious about where they shop and if their information is safe from online scammers and hackers. This is why most trustworthy online stores will use a secure payment system of some type to protect their customers. Stripe offers businesses SSL and encryption services for no extra cost. Some services, like Stripe Radar anti-fraud service, will cost the business extra fees for extra protection.
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Is Stripe safe and legit or a scam?
Stripe is probably one of the safest payment processors to use online. According to usnews.com, Stripe is #7 on their list of Best Credit Card Processing Companies of 2021.
Stripe uses PCI Service Provider Leve 1, which is the highest grade of payment processing security. Stripe encrypts all of the data and communications it uses. It also complies with all legal regulations for payment platforms.
Stripe will not scam you or your customers. It’s important to be careful shopping anywhere online—most online shoppers are very aware of this. Stripe will not ask for personal or financial information. If someone receives an email, phone call, or text message in this context, it is probably a phishing scam. If you think someone is trying to scam you, report it to Stripe’s customer support.
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Is Stripe trustworthy and reliable?
Stripe is used by Fortune 500 companies and other popular companies like Instacart, Deliveroo, Slack, Glossier, and more. Stripe makes sure payment security is one of their #1 priorities when doing business, and obviously, multi-million dollar companies seem to trust this payment processing method.
Stripe offers one of the highest levels of payment processing security and transparent pricing. They don’t hide any of their fees and they don’t charge set up fees. But, remember that you cannot see most of the pricing unless you make an account.
Stripe is secure, trustworthy, reliable, and used across the world. There’s no need to worry here!
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Stripe Fees and Costs
Stripe is free to use for businesses—there are no monthly fees, which not all credit card processing companies do. Online transactions cost 2.9 percent plus 30 cents. If someone uses Stripe for in-person transactions and business, swiped/chip transactions will cost 2.7 percent plus 5 cents. Keyed transactions will cost 2.9 percent plus 30 cents. Chargeback fees are $15.
If a customer wants to dispute a purchase, this is where the chargeback fee applies. Stripe offers chargeback protection for these cases, covering these charges and dispute fees.
If someone uses an international card or requires a currency conversion, an additional 1 percent charge will be added. This applies to online and in-store payments.
Stripe lets businesses receive their money weekly, monthly, or on a two-day rolling basis, or an instant payout option which will cost 1 percent of the total volume of payouts.
The processing fees are the main way Stripe makes its money. Other services they provide, like Stripe Capital, which allows businesses to take out loans through Stripe, will provide Stripe with interest revenue.
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Does Stripe have good customer service?
Stripe’s customer service works a little differently than most companies, as you need to have an account and sign in to their online support system.
Once you are signed in, you can email them through the website, and they claim to respond within 24 hours. You can request a chat, which may take about 3 minutes. Stripe support does not have an inbound customer service phone line, but you can request a phone call from one of their support members.
According to TrustPilot.com, 54 percent of reviews mentioning customer service are 5-star reviews. The bad reviews reflect one of the few cases where a customer/business may have had a bad experience or cannot get a hold of customer service. This is bound to happen, especially if a customer is upset and impatient.
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Does Stripe have a refund policy/buyer protection?
If you have questions about your Stripe business account, it’s best to contact their customer support team. If you are unsatisfied with Stripe’s services, you can cancel your services and close your account at any time. Stripe will help you export any important business information before you close your account too.
As for refunds for your customers, you can issue refunds through Stripe, but it is a little difficult as Stripe’s UI is made for tech-savvy people, not your average business person. The complete refund process can be found here.
While Stripe does not charge the business a fee for issuing a refund, the transaction fees are not refunded to the business. It’s important to note that other companies will usually refund all of the transactional fees to the business after the refund has been processed.
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How to delete a Stripe account
If a merchant plans to delete their Stripe account, they must go into Settings, then into Account Details on their Stripe account. Once you are on the Account Details page, you need to scroll to the bottom on click on “Close Account.” It’s important to note that only the owner can close the account, and they must pay their balance if they have one.
Once a Stripe account is deleted, it cannot be undone.
The pros and cons of Stripe
Pros
- Customizable plans
- Offers different packages and services based on business needs
- Provides discounts for businesses making more than $800,000 each month
- Great for online stores
Cons
- Customer service may be difficult to reach
- PayPal isn’t an accepted payment method through Stripe
- Hard to use if you aren’t tech-savvy
- Processing rates are higher than other similar companies
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Stripe Careers
Stripe offers many careers and promotes diversity in the workplace. Stripe gives its employees medical benefits, parental leave, healthy food available within its offices, and opportunities for advancement within the company.
Stripe also has a very active internship program, where most interns are hired into the company full time after they graduate.
More open roles at Stripe can be found here.
Best Stripe Alternatives
Are you interested in researching other payment processing software for your business? Check out these similar companies:
- Square
- Intuit Quickbooks
- PayPal
- Amazon pay
- Venmo for Business
- Braintree
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Additional FAQs
Is it better to use Stripe or PayPal for my business?
Ultimately, this will depend on your business needs. Both are reasonably priced, but PayPal is more user-friendly, especially if you aren’t a tech-savvy person.
Does Stripe report taxes to higher authorities?
Stripe calculates taxes for your transactions and will maintain a record of all taxes in all transactions. Stripe will provide documents for your business when you need to file taxes for your business. They don’t report the taxes, but they will give you the tools you need to do it yourself.
Do I need to give Stripe my birthdate or United States SSN?
According to Support.Stripe.com, Stripe is required to conduct identity verification. They collect, verify and maintain information with every United States-based Stripe account. Stripe will do this by using an Employee Identification Number or Social Security Number that you give them.
This varies depending on which country you are using Stripe in—in the United States, Stripe will ask for one of these tax verification methods to make sure you aren’t laundering money, hiding terrorist financing, avoiding taxes, or other financial crimes.
What type of payments does Stripe accept?
Visa, MasterCard, American Express, and Discover.