Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Our Verdict
Our Verdict
Is Stripe right for you? Explore our in-depth 2024 Stripe review to learn about this popular payment processing solution’s features, pricing, pros and cons.
Summary:
Founded in 2011, Stripe is a popular payment processing and merchant services company. It is accredited by the Better Business Bureau (BBB) and maintains an A+ rating. Stripe offers a global payment system that can accept more than 135 currencies with transparent pricing and discounts for high-volume merchants. Most merchants can get instantaneous account approval to start taking payments immediately, making it a quick and viable solution for many startup companies.
Pros
- Advanced reporting tools
- Subscription tools
- Instant Payouts available
Cons
- Requires technical understanding
- Limited in-person transactions
- No high-risk industries
On Stripe's Website
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Monthly Subscription
$0
PCI Compliance Protection
Yes
Funding
Standard two business days; Instant Payouts within 30 minutes
Table of Contents
- Stripe at a Glance
- Other Benefits
- Fine Print
- How Stripe Stacks Up
- Is Stripe Right for Your Business?
- Frequently Asked Questions (FAQs)
Show more
Featured Partners
Advertisem*nt
1
Stax
Free Trial
No
Offers
First Month Free
Pricing
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
2
Finix
Free Trial
No
Offers
Save up to 40% on credit card processing
Pricing
Transparent subscription-based pricing with 0% markup on interchange fees
3
Payment Depot
Free Trial
No
Pricing
Customized Interchange+ Pricing - Rates as low as 0.2% - 1.95%
4
North Payments
Free Trial
No
Offers
$0 Setup with Free Equipment + No Cancellation Fee
Pricing
Zero Cost Processing Options - Guaranteed Cost Savings
Stripe at a Glance
Stripe landed on our list of Best Credit Card Processing for Small Business because it’s versatile for online businesses looking to get merchant services attached to a shopping cart quickly. Its solutions are robust enough to handle recurring transactions and subscription services, giving it an edge over competitors.
Business owners can take advantage of advanced reporting tools that allow for customized reports. They include itemized reports for revenue, refunds, fees and receivables, to name a few. As an Interchange Plus provider, merchant fees are transparent, listed out on easy-to-read summaries so that business owners can better manage their revenues.
While Stripe’s standard payout is two business days, qualified merchants eager to get cash in the bank can take advantage of the Instant Payouts option. This will allow access to capital in as little as 30 minutes after the transaction. Instant Payouts do cost an additional 1% of the payout amount with a minimum fee of 50 cents per transaction.
Stripe does not charge a monthly fee for services. All of its fees are per transaction with transparent pricing. Expect to pay 2.9% plus 30 cents per transaction for online sales. There is an additional 1% fee for international and currency conversion transactions. For in-person card processing, expect to pay 2.7% plus 5 cents per transaction with the same added 1% for any currency conversion or international card use.
We looked at what real customers had to say about using Stripe by examining online reviews. Stripe is regularly recommended by web developers and e-commerce specialists. It has a 4.7-star rating on Capterra with over 2,000 reviews. Negative reviews talked about problems with support and unwarranted customer refunds. Similar reviews were found on G2 with over 140 reviews.
Other Benefits
Because Stripe integrates with several online shopping carts and doesn’t need any hardware, it’s a quick solution for e-commerce businesses. It integrates with a lot of software including Drupal, PrestaShop, Magento, Shopware, WooCommerce and WordPress.
Stripe makes international sales easy by accepting over 135 currencies. The way the currency acceptance works is your customers can pay in their own currency. The amount is then converted, for a 1% fee, into your currency paid into your bank.
Fine Print
While Stripe offers a lot of tools to help online developers integrate the merchant services solution into their website’s shopping cart, it does require some technical ability. This is something that many new website owners comment on—they often need to pay a developer to integrate the solution.
Even with those issues, Stripe is known as an online merchant services powerhouse. While it does offer the Stripe Terminal for in-person sales, the solution is not as robust as competitors.
Stripe also has a pretty big restricted list for industries that it doesn’t serve. This list includes many financial and professional services such as money and legal services. It doesn’t work with intellectual property companies or counterfeit goods companies. Gambling companies also make the list, as do adult content sites. Stripe has a long list of high-risk industries that are also restricted that includes bankruptcy attorneys, essay mills, travel reservations, timeshares, negative response marketers and extended warranties.
How Stripe Stacks Up
| Stripe | Payment Depot | Square | |
|---|---|---|---|
Per Transaction Costs | 2.7% to 2.9% + 5 cents to 30 cents domestic | 7 cents to 15 cents + interchange | 2.6% to 3.5% + 10 cents to 30 cents |
Monthly Fees | $0 | Starts at $79 | $0 |
Funding | Standard two business days; Instant Payouts within 30 minutes | 24 to 48 hours | Standard next day |
Learn More | |||
Read Reviews | – | Read Payment Depot Review | Read Square Review |
Before you commit to a merchant services provider, you should take a look at several competitors in the marketplace. We’ve taken the time to compare Stripe with two of its competitors, Payment Depot and Square.
In relation to Payment Depot, Stripe has a very different pricing structure. Payment Depot is known for its membership fee with low per-transaction costs. This is a benefit for those with a high volume of transactions.
Square and Stripe have been going head-to-head since Stripe came on the market in 2011. They have similar pricing structures, though Square can be higher with certain transactions. What makes Square better is the standard next-day funding for all accounts. They also offer instant transfer for an additional fee.
Compare Alternatives
- Stripe vs Braintree
- Stripe vs Square
- Stripe vs PayPal
- Stripe vs Clover
Related: More Alternatives
Is Stripe Right for Your Business?
If you’re an e-commerce business, it will be hard to beat Stripe for its integrations and ability to take a multitude of currencies. It may take a little developer help to get it integrated with your shopping cart, but once you do, the system is reliable and offers some of the best reporting options you’ll find among merchant services.
Frequently Asked Questions (FAQs)
What are the different types of POS systems?
There are full-service terminals, mobile POS systems, cloud-based POS systems and web-based POS systems. Full-service terminals are the most expensive type of POS system. They’re typically used by large retailers and restaurants with multiple locations. Mobile POS systems are less expensive than full-service terminals, and they’re often used by smaller retailers or foodservice operations, such as food trucks.
What is the difference between a POP and POS?
A point of purchase (POP) is the location where the customer makes a purchase, like in a store or online. The POS system is the technology that facilitates the purchase.
Is Stripe better than PayPal?
Both Stripe and PayPal are online payment processing specialists. Stripe works better for larger companies that may want to have more payment options such as subscriptions and recurring payments. PayPal is slightly more expensive than Stripe, charging 2.7% plus 30 cents per online transaction, compared to the 2.7% plus 5 cents for most transactions with Stripe. Read our PayPal vs. Stripe review to learn more.
Is Stripe owned by Amazon?
Stripe and Amazon are partnered. Stripe allows Amazon to process a significant portion of its revenues through the payment processing provider. Despite being a major partnership, Stripe is still an independent entity with a market valuation of $95.6 billion.
Is Stripe a bank?
Stripe is not a bank and cannot issue payment cards to customers. Stripe is a payment processor that connects debit and credit networks with banks. It does this for a fee based on the transaction amount.
Is credit card processing secure?
Yes. Because so much sensitive information is being transferred across these networks, credit card processors are PCI-compliant and use advanced encryption methods to secure transactions.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Was this article helpful?
Send feedback to the editorial team
Thank You for your feedback!
Something went wrong. Please try again later.
