Stripe

What is Stripe?

Stripe is a payment service provider that makes it easier for online store owners and online entrepreneurs to accept payments. The service has quickly gained popularity thanks to its easy, safe, and fast payment processing.

Stripe is a helpful tool for e-commerce stores and every platform that accepts online payments, for example, in the form of a subscription.

The company operates in over 100 countries and supports over 135 currencies. It’s best known for its simple integration process and optimized payment processing.

The tools offered by Stripe allow companies to accept payments using credit cards, debit cards, bank transfers, Cash App Pay, and more. The platform supports making payments in various currencies, thanks to which businesses can offer services to customers worldwide.

Stripe offers online payment methods such as:

• Apple Pay
• Google Pay
• Amazon Pay
• Cash App Pay
• ACH Credit Transfer
• ACH Debit
• Afterpay
• Affirm

Stripe also accepts the most popular credit card providers like Visa, Mastercard, American Express, China UnionPay, and many more.

One of Stripe's most significant advantages is the option to complete payments without being redirected to external sites. This means buyers can finish their purchases on the online store’s website without switching to a different browser tab. It helps with reducing the number of abandoned shopping carts.

Stripe isn’t just a payment gateway. The platform provides a complete payment interface guiding the user through the transaction process. Developers can easily embed the payment form on a website so that the user can finish the purchase on the site or redirect them to a page powered by Stripe.

Additionally, the platform offers other payment methods, such as generating a special QR code or a link for one-click payments.

Developers can easily integrate Stripe with a website. After creating an account on Stripe, they can integrate the payment platform with a dedicated API or use a plug-in prepared for e-commerce sites (e.g., Shopify or DoorDash).

Moreover, Stripe offers the option to accept offline transactions with Stripe Terminal. The company provides many readers, thanks to which businesses can use its services even in brick-and-mortar stores.

Security and functionality of Stripe

For Stripe, user comfort and security come first. Therefore, the platform provides a wide range of functionalities that guarantee this. What’s more, Stripe has many tools and mechanisms that allow companies to secure payments.

Compliance with PCI DSS

The Payment Card Industry Data Security Standard (PCI DSS) is a collection of security standards that protect payments made with payment cards. It’s one of the most important standards in the online payment industry, and consequently, it’s also rigorous. Compliance with this standard means that Stripe follows strictly determined rules regarding storing, processing, and transferring credit card data. It ensures that only authorized entities have access to buyers’ data.

Data encryption

Data encryption is the process of transforming data into code that protects it against unauthorized access. It’s one of many security mechanisms Stripe uses. The customer’s data is encrypted before it’s transferred and can only be decrypted with a unique key. Even when the data is stolen during the transfer, it can’t be read without the key.

Identity verification and authorization

The next mechanism protecting customer data is the authorization and verification of user identities. Thanks to the Stripe Identity service, e-commerce store owners can check buyers' identities and protect the store and other users from fraudsters. The service, among other things, can detect forged identity documents.

Monitoring transactions

Stripe constantly monitors transactions, using machine learning, among other technologies, to detect and block potentially dangerous payments. The platform also offers the option to create custom rules for flagging and blocking suspicious behaviors. For example, Stripe analyzes customer behavior in an online store and warns of abnormal activities.

Two-factor authentication

Stripe uses two-factor authentication for additional transaction security. Buyers are asked to provide a code sent to an indicated phone number during payment. This ensures that an authorized user makes the transaction. A similar safety feature is also used when logging into a user account.

Tools for risk management

Stripe provides access to risk management tools such as Stripe Radar, Stripe Identity, or Stripe Sigma. Their main goals are to optimize the risk management process and ensure the security of the e-commerce platform. They allow you to reduce the risk of fraud by closely monitoring the payment transactions. Store owners can view account activity reports, such as the number of processed credit card claims.

Analytics and report generation

Stripe’s dashboard allows store owners to view detailed business statistics, such as the conversion rate, number of transactions, total sales value, number of unpaid invoices, and number of active users.

Stripe Sigma provides tools for creating reports and visualizations. Thanks to it, businesses can receive automated reports in their mailboxes at scheduled intervals. Additionally, reports can be transformed into SQL language, which allows companies to create custom reports.

Companies that entrusted their payments to Stripe

Stripe cooperates with companies such as Shopify, Amazon, WooCommerce, Google, Slack, Notion, Kickstarter, and Booking.com. This shows that Stripe performs well not only in online stores but also in other online businesses. The platform isn’t designed just for e-commerce websites but for any business operating through the Internet, such as services in subscription, on-demand, or SaaS models.

Fees for using Stripe

Setting up and maintaining an account on Stripe is free. In a standard plan, the platform charges a fee per transaction (commission system) and for additional features such as one-click payments. Stripe charges different fees depending on the payment method used.

• 2.9% + 30¢ for credit/debit cards and wallets: Visa, Mastercard, Maestro, American Express, Apple Pay, Amazon Pay, Google Pay, etc.
• 2.9% + 1.5% for international payment cards.
• 2.9% + 30¢ for payments with Link with domestic cards.
• 0.8% for bank debits and transfers with ACH Direct Debit.
• 6% + 30¢ for payments with Affirm.

You can find a detailed list of available payment methods and fees on the Stripe website.

Additionally, Stripe offers automatic currency conversion of payments, for which it charges an additional +1% fee.

Stripe doesn’t charge any additional fees for unsuccessful transactions.

Summary

Stripe is a popular online payment processing platform that offers a wide range of payment methods and provides an optimized and convenient checkout process. A clear UI of the payment form improves user experience and reduces the number of abandoned shopping carts.

Moreover, Stripe has many security mechanisms that protect customer data and safeguard stores against fraud.

Stripe enjoys the trust of small businesses, corporations, and large e-commerce platforms (e.g., Shopify, Amazon, WooCommerce).