What Is Stripe?

Stripe is a cloud-based payment processing platform that lets businesses make or accept payments via credit and debit cards, ACH transfers, and other international payment options. So, what does Stripe do? It streamlines the payment process for domestic and international deals.

SaaS, e-commerce businesses, marketplaces, subscription-based businesses, or any other type of business can utilize this platform to streamline the payment process.

In the Stripe transaction, the amount is directly transferred to the linked bank account. The Instant Payouts option is also available for faster payments. It enables users to transfer the amount within 30 minutes.

How Does Stripe Work?

Stripe provides a secure mechanism for transactions between businesses and clients. To understand how Stripe works, you need to follow the steps below:

1. Initiating a Payment

When the customer places an order, they need to enter the details using the chosen payment method. For example, if the customer is making credit card payments, they need to enter the card number, CVV, and expiration date.

2. Information Capturing

After the user submits their information, Stripe securely encrypts the payment data and contacts the issuing bank. The bank later approves or declines the transaction. The process goes ahead once the bank approves; otherwise, it gets declined.

3. Settlement of Payments

Furthermore, payment is transferred from the client’s account to the business bank account linked to Stripe, allowing businesses to receive payments seamlessly.

What Are the Benefits of Using Stripe?

So, how does Stripe work? After defining this, we now see its benefits. Many businesses rely on Stripe for their payment process. The following are key benefits of using Stripe:

1. Easy Integration & Scalability

Stripe is very easy to integrate with websites and applications. It offers various pre-defined integrations and well-documented API and SDKs for various languages. Additionally, it is scalable and caters to the needs of both small businesses and large enterprises.

2. Supports a Wide Range of Payment Methods

Stripe is not limited to a few payments. It supports 100 payment methods, including credit and debit cards, as well as local payment options.

3. Security and Fraud Prevention

Advanced security measures, such as encryption, machine learning, and PCI DSS compliance, protect all sensitive information.

4. Insight and Reporting

By viewing the data and analytics, businesses can easily understand their payment trends, and professionals can easily determine which measures to take to improve business operations.

5. 24/7 Customer Support

The Stripe platform provides 24-hour customer support through call, chat, and email. The support team is always ready to assist its customers.

6. Supporting Contactless Payment

Stripe offers contactless payment through its Tap to Pay feature, which simplifies the payment process for businesses and eliminates the need for extra hardware.

How to Set Up and Utilize Stripe?

Setting up Stripe is very straightforward but involves signing up and verification for the proper process. Like any other payment processing system, professionals need to create an account and integrate it with the website.

Below are the key steps:

1. Account Creation & Business Profile

Initially, you need to create a Stripe account on stripe.com by clicking on the Create Account button. Once you click on it, you need to enter the business details as follows:

• Email
• Full name
• Password (you need to set)
• Choose your country

Once you create a Stripe account, you will be asked to fill in more details relevant to your business. Fill in the business profile by providing the necessary information below:

• Employer Identification Number – EIN (optional)
• Business website
• Business description

2. Verification Process

Before your business starts accepting payments, Stripe will perform a legal verification. You can easily check the account’s verification status through the Stripe dashboard by following these steps:

1. Click on the Settings button.
2. Scroll down and find the compliance heading.
3. Click on the Verification button.

If verification is completed, you can move to the next steps and start accepting the payment. If it is not verified, you need to follow Strip’s guidance.

3. Payment Method Setup

Google Pay and Apple Pay are the popular payment systems that Stripe supports by default. However, users can easily customize their payment methods to suit their needs. Stripe offers various payment methods.

4. Integrating Stripe with the Website

Stripe offers various integration methods, which are as follows:

4.1. No-Code integration

From the name itself, it is easy to predict its concept. It is a faster integration method that does not require any kind of coding game. Go to the payments section in the Stripe dashboard and create payment links.

4.2. Low-Code Integration

This approach is fully compatible with platforms such as Wix, WordPress, and Shopify. It involves adding plugins, selecting Stripe payment, and connecting the account.

For WordPress

• Install WooCommerce
• Adding the Stripe Payment Gateway plugin
• Connecting the Stripe account with API keys

For Wix, Squarespace, Webflow

• Visit the site’s Payments/Checkout settings.
• Choose the Strip and connect the account.

4.3. Custom Integration (using code)

You need to obtain the API keys by navigating to the “API Keys” section to get the secret key and publishable key. The integration will involve both the front-end and back-end components. On the front end, the publishable key is useful, whereas the secret key will be saved to the server.

5. Integration Testing

It is mandatory to test the Stripe integration. Users can enable the “test mode” to check and ensure the process is going well without making a real purchase. The user can easily enter the dummy card details.

6. Go LIVE and Manage the Online Payments

Going ahead, you can use Stripe to accept payments when everything is up to the mark. You can also configure recurring payments and manage subscriptions with ease. Download reports and export data as well.

What Are the Charges Applicable in Stripe?

2.9% is the flat rate that Stripe charges, which depends on the payment method. Additionally, a $0.30 charge is applicable per transaction. Here is the breakdown of the fee structure for better understanding:

Basic card payments: 2.9% + $0.30 per successful transaction

Additional Fees:

• International cards: +1.5%
• Currency conversion fees: +1%
• Manual entered cards: +0.5%
• International cards with USD or other currency present: +4.3%

The chargeback fee of $15.00 is applicable in Stripe, which is deducted from the business account balance.

Accept Online Payments on Invoices With Moon Invoice

Moon Invoice helps businesses keep their financial health up to date. Professionals can streamline online payments through it.

From invoice creation to final payment acceptance, Moon Invoice has everything to offer. Professionals can accept payments through Stripe because the platform is fully compatible with it. Moreover, Moon Invoice offers various other payment methods.

Users can generate financial reports with a fully customized mode for better understanding. This not only eases their accounting process but also provides real-time financial insights.

Last Word

In today’s world, Stripe is a valuable payment system partner for many businesses. It not only provides a convenient way to make an online payment but also ensures security. Thanks to its extensive features, user-friendly interface, and support for multiple currencies, it is an ideal choice for every profession. Professionals can easily maintain strong business finances.

This payment process will become more adoptable in the future. We hope that it continues to grow with further advancements.

Frequently Asked Questions