Stripe overview
Stripe is the credit card processor option for our planroom. We chose Stripe because it offered several key advantages over traditional processing routes.
Benefits
- No setup or monthly fees at all
Other processing options have traditionally charged setup fees of around $100-300, and monthly fees $50-70. This is a huge cost savings with Stripe. - Full solution, no merchant required
It used to be you had to sign up with our gateway, and then still get a merchant account or pay your existing merchant more money to handle online sales. Stripe takes care of everything from taking the card, to depositing the money directly in your checking account. - Accepts ALL major cards (yes even AMEX)
Usually it takes a separate paperwork, higher fees, and separate deposits in your bank account to work with AMEX. Now it just works like any other card, at the same rates. - No PCI compliance headaches
Several of our reprographers were starting to get PCI compliance questionnaires from their merchants, and even PCI compliance scans of the planroom, resulting in lengthy disputes, and sometimes extra monthly fees to achieve compliance. Stripe makes this all go away. With Stripe, credit card data is transmitted from your customer's web browser directly to Stripe's servers. It never touches your planroom even for a second, eliminating it from PCI compliance requirements. - 10 minute setup process
Yes that's right, 10 minutes. In the past it has taken days, sometimes even weeks to get fully setup. Stripe will have your account live and ready to accept cards within a few minutes.
Fees and deposits
- Transaction fee is 2.9% + $0.30
Yes this is a bit higher than most merchant rates. Keep in mind though that merchant will advertise their "best case" rate, but you'll rarely see that. Rates typically vary based on the type of card being charged, with you paying a much higher rate for rewards cards and especially for AMEX. Stripe is averaging it all out and charging a simple, flat rate across the board. - Transaction fees are taken out up front
When a customer pays you $100, many merchants will deposit the full $100 in your bank account, and then later in the month come back and charge you for their fees. Stripe takes the fees out up front before making the deposit, so you only see ~$97 deposited into your account. This can make bank reconciliation more difficult, since the deposit number doesn't match your invoice number exactly. Note that you will have an online login where you can see all Stripe transactions and deposits, and easily get the transaction fees for your reconciliation. It just might introduce a bit more work into that process.