What is Stripe?
Stripe allows merchants to accept credit cards, debit cards and other payments. Stripe payments work best for businesses that sell a lot online. Most of its unique features are specifically designed to help online sellers.
What are the payments that Stripe accepts?
Stripe is a payment processor that allows businesses to accept Visa Mastercard, American Express and Discover cards. Mobile wallets can be used to accept payments and allow businesses to buy now, pay for later. Stripe allows you to accept payments in many currencies. The company offers Stripe Terminal to accept in-person payments.
Stripe also offers many additional services such as billing, invoicing, and sales tax automation.
What is the process of payments with Stripe
Stripe processes payments within six steps
- The customer gives their card information online or in person.
- These card details are entered into Stripe's payment gateway. Stripe encrypts all data.
- Stripe will send the data to the acquirer. This is a bank that will handle the transaction for the merchant. This step is where Stripe acts as the merchant, with the business owner acting as a submerchant. This allows Stripe users to avoid the need to create a merchant accounts which can be tedious.
- The cardholder's bank is notified that the payment has been made through a credit card network such as Visa and Mastercard.
- The transaction is approved or denied by the issuing bank.
- The signal travels through the card network from the issuing bank to the acquirer and then to the customer, who receives a message indicating whether the payment was accepted or declined.
After the cardholder's bank approves it, Stripe can be used to transfer funds into your bank account.
- Customers of Stripe can get payouts as soon as transactions are processed (usually within two business days).
- You can also choose to receive payouts on a time frame that suits you best (daily or weekly).
Stripe will facilitate each transaction.
- 2.9% plus 30 cents for online transactions.
- 2.7% plus 5 Cents for in-person transactions
- For manually keyed transactions, 3.4% plus 30c
- 3.9% plus 30c for currency conversion or international cards.
Are Stripe payments secure?
Stripe has been certified as a compliance Level 2 service provider. This means that it must submit an annual compliance report, routine security scans, and tests. Buy verified stripe account encrypts credit card numbers of customers and stores decryption information separately. This means Stripe cannot see credit card numbers without extra steps.