Stripe Review

Simple, Fair Pricing With Minimal Fees

Stripe’s payment fees are fairly straightforward. The company charges a flat per-transaction fee of 2.9% + $0.30, regardless of card type, and adds a 1% transaction fee for international payments. Merchants using the platform’s instant payout feature can have funds transferred to their bank account immediately, albeit with a 1% fee. The company does not charge an early termination fee, a PCI compliance fee, or a fee for refunds or failed payments; however, there is a $15 Chargeback fee per incident (refunded if the chargeback is reversed). Overall, Stripe’s pricing, payment methods and business model resemble those of the mobile credit card processing company Square, but for online businesses instead of retail businesses and restaurants.

Interchange-Plus Pricing Available

According to the company’s website, Stripe also provides interchange-plus pricing plans to merchants in addition to their other payment methods. Merchants can contact Stripe for custom pricing plans if they process a high volume of online payments for their customers. These merchants can also receive a volume-based discount to their tiered rate structure allowing for business flexibility.

Not All Merchants Accounts Welcome

Like Square, the company’s standard policies regarding fraud prevention and prohibited business activities appear to be cause for complaint among many merchant accounts. Merchants report two specific problems in the complaints below this review and on other consumer protection websites. In one scenario, merchants apply for processing with Stripe and are informed that they are approved and ready to go. After processing one or more online payments, these merchants find that their payments have been frozen and their accounts canceled due to the fact that their sales are considered “high-risk processing” by Stripe. These cancellations appear to take effect with little or no warning, and merchants report difficulty resolving the unprocessed payments in a satisfactory and efficient manner.

Stripe Has Total Control Over Your Money

In the second case, merchants express confusion over their payments being held in a reserve account. This is a common fraud prevention practice that we don’t tend to penalize processors for, but it seems that Stripe does not effectively communicate its reserve policies to merchants or warn them when a cash reserve might be withheld. Merchants should be aware that Stripe reserves the right to “suspend Instant Payouts to you at any time, including (a) due to pending, anticipated, or excessive Disputes, Chargebacks, Refunds, or Reversals; (b) in the event of suspected or actual fraudulent, illegal or other malicious activity; or (c) where we are required by Law or court order,” according to its terms of service.