Stripe Payments

Stripe Payments: How Much Does Stripe Charge And Is It Worth It?

Stripe Logo

Accepting card payments online used to be a daunting task; complex pricing structures, regulatory requirements and paper forms(!) made it difficult for the average seller to just get started.

Similar to how the in-store (card-present) payment processing market has been simplified by iZettle, Square and others, online payment processing can now be a hassle free experience thanks to a new breed of companies — one of the most well known being Stripe payments.

Founded in 2010 and originally named /dev/payments, stripe quickly adopted a less confusingly pronounced name and saw quick growth, first among developers and then with the wider community of eCommerce merchants.

Traditionally, to accept online payments you’d need both a payment gateway (e.g. SagePay, Realex) and a merchant account from a merchant bank. Stripe, and a few others have removed this confusing combination and provide merchants with an all-in-one solution.

As a unified platform, Stripe is also very versatile. It is designed to let your customers pay in whatever way they prefer. The system accepts all major credit cards as well as Apple Pay and other payment options. In addition, Stripe supports more than 135 different currencies – and that support is not just online. The versatility of Stripe Payments also applies to mobile apps. Payments received under Stripe can be one-time or recurring. Plus, your customers will have the option to save their payment details so that future purchases can happen with a single click.

You will receive the payment as a deposit in your company’s bank account in two days. By default, this is set up on a rolling basis, but you can also opt to receive transfers weekly or monthly, depending on what works best for your business. It’s that easy.

Let’s take a look at how and what Stripe charges for and whether it makes sense for your business:

Pricing Model

Stripe Payments is equally simple when it comes to pricing. While there is an enterprise option, Stripe follows a transparent, but expensive Pay As You Go structure.

Under this plan, Stripe Payments assesses you a fee for processing European credit cards and bank cards that is equal to £0.20 plus 1.4 percent of the transaction. For example, if you have a customer who buys something from you for £100, the fee for processing that transaction is £1.60 (£0.20 plus £1.40 which is 1.4% of the transaction amount). If the payment card was issued outside of Europe, there will be an additional 1.5 percent charge.

This pricing structure makes it relatively easy to calculate both how much it will cost to process an individual transaction, and your monthly or yearly bill. In addition, there are no monthly charges, chargebacks are charged at a reasonable £20 per unsuccessful chargeback.


Stripe Payments Comparison



Stripe wasn’t the first all-in-one integrated payment processor. PayPal pioneered the concept nearly two decades ago, and has for a long time held a significant portion of the market. In recent years however, PayPal has lost the favour of developers and eCommerce platforms who place huge value on the simpler integration capabilities Stripe has invested in. PayPal is also one of the most expensive ways to take payments (online or offline), especially for smaller sellers.


Pros and Cons

Stripe Payments is easy to use and out works for a variety of situations. There are only two downsides. The first is that you do need to understand a little coding to make Stripe Payments work for you. You don’t need to be a programmer – it’s not extremely advanced – but you do need to understand how to use a plugin and configure it. The second is the cost. Stripe Payments is not the cheapest payment option, but it also isn’t the most expensive. Its transaction charges are fairly standard.

That said, there are many benefits to using Stripe Payments. One of the biggest advantages is that your customers can pay in their local currency, no matter where in the world they are located. This saves them a foreign transaction fee. Of course, the con is that you have to pay a little extra for the convenience but it is an advantage that many of your customers will appreciate.

Stripe is also very robust. In addition to letting you accept payment cards from all over the world, the payment processing system lets accept non-card payments as well. It supports both one-time payments and recurring charges as well.

In addition, Stripe Payments is secure. When you choose a traditional merchant account and gateway, you have to maintain documentation and security protocols to prove that you are keeping cardholder data secure; this is called PCI-DSS compliance. When you choose Stripe Payments, payment information is kept separate from your servers so you don’t have to do anything extra. Just plug and play.

Auxiliary Products

Stripe Payments is only one of the services that Strip offers. The payment processor also offers several auxiliary products, many of which can help Stripe Payments sever your company’s needs even better.

Stripe Atlas
This product streamlines the process for starting an Internet-based business in the United States. Stripe Atlas gets you up and running, fully incorporated with a bank account, in just a few days. Plus it lets you keep track of the whole process.

Stripe Checkout
Whereas Stripe Payments processes payment cards and non-card payments, Stripe Checkout is the entire process. It combines CSS, HTML, and JavaScript into a payment form that you can embed in your site.

Stripe Sigma
This product lets you analyze the information from your Stripe services with SQL to gain business insights about your customers and their buying habits.

Stripe Radar
This is Stripe’s fraud protection system. Stripe Radar flags card information based on behavioural markers and frequency of use across more than 100,000 companies worldwide.