Describe Stripe
Stripe is a payment service provider that enables retailers to take payments with debit and credit cards as well as other methods. Since most of its special features are largely focused on online sales, its payment processing solution, Stripe Payments, is best suited for companies who conduct the majority of their business online.
How much money does Stripe accept?
Business owners can accept debit cards, Visa, Mastercard, American Express, Discover, JCB, Diners Club, and China UnionPay by using Stripe as a payment processor. Companies can also provide buy now, pay later options and accept payments through mobile wallets. Stripe accepts a number of different currencies for payments. The business provides Stripe Terminal, a point-of-sale solution, for accepting payments in person.
In addition to these and many other services, Stripe also provides automation for sales tax, billing, and invoicing.
How is the payment processing on Stripe done?
Stripe uses six steps to handle payments.
The client gives their card details over the phone or in person.
These card credentials are sent to Stripe’s payment gateway, where they are encrypted.
The acquirer, a bank that handles the transaction on the merchant’s behalf, receives the information from Stripe. Stripe acts as the merchant in this step, with the owner of the business acting as a submerchant. This eliminates the need for Stripe users to create a merchant account, which can be time-consuming.
The payment is made to the cardholder’s issuing bank via a credit card network like Visa or Mastercard.
The transaction is approved or denied by the issuing bank.
This signal leaves the issuing bank and travels to the acquirer via the card network. From there, it passes through the gateway and reaches the customer, who receives a notification indicating whether the payment was approved or denied.
Upon final clearance by the cardholder’s issuing bank, you can move money from Stripe into your business bank account.
Payouts to Stripe customers are made after transactions have completed processing, which typically takes two business days.
You have the option to set your own payout schedule, which can be daily, weekly, or monthly.
The fees associated with using Stripe vary based on the kind of transaction being processed:
For transactions made in person, add 5 cents to 2.7%.
2.9% plus thirty cents for transactions made online.
3.4% plus thirty cents for transactions entered by hand.
For international card transactions, add 30 cents to 4.4%. MORE: Top Rivals of Stripe
Is making payments via Stripe safe?
Stripe is required to provide an annual compliance report as well as regular security scans and testing because it has been audited and certified as a PCI compliance Level 1 service provider. Stripe encrypts all payment card numbers for its customers and keeps decryption data separate, so credit card numbers cannot be seen by Stripe without additional measures.
Additionally, Stripe requires all online transactions to happen over the safer HTTPS network.
How to use Stripe to take payments
To take Stripe payments, follow these three steps:
Sign up for a Stripe account. All you need to complete this is your email address and name.
Give business specifics. The legal structure and address will be part of this. Additionally, Stripe will ask for personal details from you, such as your entire name and birthdate.
Connect your bank account. This is the location where Stripe will pay you.
Payouts won’t be available to you right now, though. Usually, it takes seven days after you accept your first payment for you to get your first payout. There may be a 14-day waiting time in certain sectors.
