Stripe Review

Stripe was founded in 2010 and brought a major change to how businesses accept credit cards online. The company introduced a new way to process payments by offering a powerful toolkit made for web developers. This made it faster and easier to add credit card payments to websites and apps. Since then, Stripe has helped businesses of all sizes accept payments online. Its tools include code libraries, APIs, and other resources that give developers flexible and simple ways to add payment features. Today, Stripe is one of the most popular choices for entrepreneurs who want to build and launch their online businesses quickly.

In addition to Stripe’s web developer tools, the company also offers a host of services available to people with a basic to intermediate understanding of HTML and CSS. In many cases, users can just copy and paste code into a webpage to begin accepting credit cards.

Stripe Checkout

Stripe’s Hosted Checkout offers an accessible solution for businesses to accept online payments through a payment page hosted directly with Stripe. The primary advantage of this feature is its ease of integration, which allows business owners to simply paste a snippet of code into their website, which then takes the customer to a prebuilt payment page.

Data Security

One of the key aspects of Stripe Checkout is data security. Stripe takes responsibility for handling sensitive payment information and ensures that transactions comply with industry standards. As a result, the business owner is removed from potential liabilities regarding customers’ payment data on its own servers. Stripe assures its clients that card data is well-protected and PCI-DSS compliant.

Customizable

Stripe Checkout is also designed to be customizable, enabling businesses to tailor the checkout page to match their brand identity. This includes modifying the visual elements, such as colors, fonts, and logos, to maintain consistency across various platforms.

Sales Tax Calculations

Another notable aspect of Stripe Checkout is its capacity for automatic tax calculation. This feature simplifies tax compliance by calculating and applying the appropriate taxes based on the customer’s location. The platform’s localization and internationalization capabilities allow businesses to provide a localized payment experience for customers worldwide, supporting multiple languages and currencies.

Zero Code Payment Links

Stripe’s Payment Links feature enables businesses to create shareable links and QR codes for accepting payments without the need for a website.

Stripe Invoices

Stripe Invoicing allows users to create invoices quickly and send them to customers without any coding or technical expertise needed.  Stripe’s invoicing features make it an attractive choice for businesses looking to automate their accounts receivable processes. With its Invoicing API, businesses can integrate the invoicing system into their existing workflows or applications, enabling communication between different systems. This integration helps automate various tasks, such as generating invoices based on specific triggers or syncing invoice data with accounting software.

Stripe Invoicing also prioritizes payment collection and reconciliation. The platform’s support for multiple payment methods, including credit cards, debit cards, and digital wallets, provides customers flexible options for settling their bills. As the platform is built on Stripe’s secure payment infrastructure, transactions are processed safely and adhere to industry standards.

Subscription and Recurring Billing

One of the significant advantages of Stripe Invoicing is its ability to handle recurring payments for subscription-based services. This feature simplifies managing subscription billing cycles and helps businesses maintain consistent revenue streams. The platform also offers customizable payment terms, automated reminders for overdue invoices, and the option to accept partial payments, catering to the varying needs of different customers.

In-Person and Point-of-Sale Transactions

Stripe has recently expanded into in-person, point-of-sale (POS) payment processing. It has done this by partnering with POS software and hardware providers and by launching a card reader similar to the one offered by Square. Stripe now works with platforms like Shopify, Lightspeed, atVenu, Housecall Pro, and GlossGenius. It also provides special tools for developers to connect Stripe with custom, enterprise-level POS systems.

Stripe Card Reader

The Stripe Reader M2 is a mobile card reader built for flexible payment processing. Its battery-powered design makes it available for both in-store and mobile use. The device supports EMV chip, contactless, and swipe payments. The M2 Reader includes end-to-end encryption and is P2PE-ready, meeting current industry standards. The reader connects wirelessly to tablets and smartphones using Bluetooth.

Optional accessories, like a charging cradle and tablet mount, are available through Stripe’s website. The company also provides a design file for creating custom accessories, so businesses can tailor their payment setup. At $59 per unit, the reader is comparable in cost to other popular competitors.

BBPOS WisePOS E Card Reader

The BBPOS WisePOS E is a smart card reader featuring a 5-inch touchscreen display, making it suitable for both countertop and handheld use. It offers versatile operation with the option to use battery power or powered from an electrical outlet. The device accepts EMV chip, contactless, and swipe payments. It includes end-to-end encryption and is P2PE-ready.

The card reader offers WiFi connectivity and an optional dock for Ethernet connectivity.  At $249, the BBPOS WisePOS E is at a very competitive price point.

Global and International Payments

Global and international payments refer to the process of sending and receiving payments across borders. However, accepting international payments can be challenging due to differences in payment methods, currencies, and regulatory requirements.

To facilitate global payments, Stripe is one of just a few options available. The company enables businesses in 47 different countries to accept payments in more than 195 currencies, and it automatically converts the payment into the business’s local currency at a competitive exchange rate. Stripe also supports a variety of global payment methods, including credit and debit cards, bank transfers, and digital wallets like Apple Pay and Google Pay.

In addition to payment processing, there are other factors to consider when conducting international transactions, such as compliance with local regulations and tax laws. Some countries have restrictions on certain types of payments, and others require additional documentation and verification before a payment can be processed. Stripe’s documentation can provide guidance on these issues, but businesses should also seek the advice of legal and financial professionals with experience in international transactions.

Common Software Integrations

Stripe’s built-in integrations are one of the big selling points for entrepreneurs. You can link your Stripe payments with popular online ecommerce platforms like BigCommerce, OpenCart, MailChip, Squarespace, and Shopify. The company can also easily integrate with subscription and recurring billing platforms like GivingTools and Partial.ly. If you are tied to accounting services like Netsuite or Quickbooks, Stripe also offers methods for exporting and importing your sales data.

Stripe “Radar” Fraud Protection

Stripe Radar is a powerful fraud prevention tool that comes with every Stripe account. It uses machine learning to check transactions in real time and spot signs of fraud. Businesses can adjust their risk settings, set custom rules to block or allow certain payments, and get instant alerts about suspicious activity. Radar also relies on data from Stripe’s global network to detect fraud patterns early.

Thanks to Radar, Stripe is known as one of the most secure payment platforms in the industry. This can help reduce chargebacks and lower the risk of losses caused by increasingly advanced fraud tactics. Radar also works with major credit card companies to get real-time updates on threats and trends in credit card fraud.

Declined Payment Prevention

One of Stripe’s unique features is “Adaptive Acceptance,” which uses machine learning to retry declined transactions before giving up on a sale. If the transaction should have gone through, this tool increases the chances of success by trying a different payment path.

This feature also works with Stripe’s recurring billing system. If a subscription payment fails, Stripe checks for updates to the card, such as new activity or a changed number, and tries again at a better time.

High Amount of Refund Fee Complaints

Business owners have voiced concerns over being charged a 2.9% transaction fee by Stripe on refunded transactions. This policy is explicitly stated on Stripe’s website, indicating no fees for refunds but not returning Stripe’s initial fees. This common practice in the payment processing industry can still surprise merchants accustomed to paying only the flat transaction fee on refunds.

PaymentPop Rating for Stripe

Positive Feedback

There are no positive reviews published about Stripe Payment Processing on the PaymentPop website.

Stripe BBB Rating

Stripe has a 1.02 out of 5 star rating based on 187 user reviews on the Better Business Bureau website.

Positive Feedback

There are no positive reviews published about Stripe Payments on the BBB website.

Trustpilot Rating for Stripe Payments

Stripe Payments has a 2.1 out of 5 star rating based on 15,495 user reviews on Trustpilot.

Stripe Review Summary from Software Advice

Rating and General Sentiment

Stripe has an overall rating of 4.7 stars from 2,958 reviews on Software Advice. Users generally have a positive sentiment about Stripe, praising its ease of integration, functionality, and support. However, there are concerns about Stripe Radar’s efficiency, the duration for payouts, and the processing fees.

Stripe Reviews from GetApp

Rating and General Sentiment

Stripe has an overall rating of 4.7 stars from 2,958 reviews on GetApp. The majority of users have a positive sentiment about Stripe, praising its features and ease of use. However, there are concerns about Stripe’s refund policies, fees for same-country payments, and customer service.

Stripe Reviews on G2

G2 has garnered 274 customer reviews of Stripe, most of which are positive in nature and many of which seem more like marketing language than actual customer reviews. Common themes praise the company’s global reach and ease of use, while others complain of abrupt account closures and funds being withheld.

Capterra Stripe Customer Reviews

Rating and General Sentiment

Stripe has an overall rating of 4.7 stars from 2,958 reviews on Capterra. The majority of users appreciate Stripe’s ease of setup, integration capabilities, and detailed transaction information. However, there are concerns about account suspensions, unclear policies, and challenges with customer service.

Customer Reviews of Stripe on CPO

Over 500 reviews have been left at the end of this review in the comment section. Please be sure leave a comment about your experienceto help keep this review as accurate as possible.

Stripe Fees & Pricing

Stripe’s fees seem fairly straightforward on the surface, but there are numerous circumstances that can increase or lower a business’ transactions fees. Stripe also offers a few optional services that include monthly fees. The information below applies to U.S. businesses. If you are located in another country, pricing may vary.

Stripe’s Standard Transaction Rates

As stated in the “Company Overview” of this article, most card and digital wallet transactions will incur a fee of either 2.9% plus $0.30 or 3.4% plus $0.30. Businesses that utilize Stripe’s payment links or payment link API will enjoy the lower of the two fees. For nearly all other transactions using custom development, the fee will be the higher of the two.

Related: This Stripe Competitor Has More Affordable Fees

Stripe Hosted Invoice Fees

Businesses can send invoices directly with Stripe. The pricing for this service starts at 3.3% plus $0.30 per transaction. The cost of the transaction can increase if international cards are used to make the payment. International fees will be covered below.

Stripe ACH, Bank Debits, and Bank Transfer Fees

For U.S. businesses, Stripe offers several methods to be paid with direct bank transfers. Each of these methods will incur its own specific fee:

• ACH Credit: $1.00 per payment. This occurs when the customer initiates the payment to the business.
• ACH Direct Debit Standard Settlement: 0.08% per transaction capped at a $5 fee. Standard settlement clears in four business days
• ACH Direct Debit Two-Day Settlement: 1.2% with no fee cap.
• Bank Wire: $8.00 per wire

Interchange-Plus Pricing Available

Stripe will provide interchange-plus pricing plans to high-volume businesses. Interchange-plus is lower cost and more transparent. No official materials indicate how much a business must process to obtain Interchange-plus, but sources have indicated that consideration starts at a volume of $250,000 per month.  Businesses must contact Stripe for custom pricing plans.

Not All Merchant Accounts Welcome

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

Reserves and Fraud Prevention

In the second case, businesses express confusion over their card payments being held in a reserve account. This is a common fraud prevention practice that we don’t usually penalize processors for, but it seems that Stripe does not effectively communicate its reserve policies to clients. Business owners should be aware that Stripe’s merchant account agreement allows them 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. If your business could be categorized as “high-risk” or you have an elevated chance of chargebacks, we advise reading the company’s terms of use.

Stripes rapid growth and global reach has predictably resulted in some legal challenges:

• Stripe faced a 2019 lawsuit from Boom Payments! alleging patent infringement, focusing on transaction processing technologies.
• A 2020 class-action suit challenged Stripe’s data mining via Stripe Elements. While part of the suit was dismissed, legality questions on sharing user information with third parties remain.
• Also in 2020, Stripe settled a lawsuit in Massachusetts, paying $120,000 over its risk monitoring and fraud prevention practices.
• The DOJ investigated Visa’s relationship with Stripe in 2021 for potential anti-competitive practices.

No-Nonsense Marketing, No Gimmicks

Stripe appears to rely primarily on its website and advertising to market its services. The company specifically caters its advertising to web developers who would like to add an online payment application to the websites they manage. Stripe appears to quote its rates transparently and truthfully in its official marketing materials.

Watch Out for Stripe Fund Holds

The Stripe website does not prominently list any explanations of its cash reserve and account cancellation policies, both of which appear to be responsible for numerous negative Stripe reviews on this site and elsewhere. It is our opinion that more could be done to help businesses avoid fund holds. Any business owner who is considering doing business with Stripe is encouraged to read the company’s fraud policy (excerpted below), which is similar to most other payment processor fund-holding policies:

We may refuse, condition, or suspend any Transactions that we believe: (i) may violate this Agreement or other agreements you may have with Stripe; (ii) are unauthorized, fraudulent or illegal; or (iii) expose you, Stripe, or others to risks unacceptable to Stripe. If we suspect or know that you are using or have used the Services for unauthorized, fraudulent, or illegal purposes, we may share any information related to such activity with the appropriate financial institution, regulatory authority, or law enforcement agency consistent with our legal obligations. This information may include information about you, your Stripe Account, your Customers, and Transactions made through your use of the Services.

Stripe is a credit card processing provider with a focus on e-commerce and online payments. While it boasts a transparent pricing model, some Stripe reviews express concerns regarding slow funding or unsatisfactory customer service. As a result, Stripe is rated less than a 5-star merchant services provider due to limited customer support options.

Since our last update, Stripe has seen a significant increase in customer reviews and complaints. However, it’s essential to note that the overall complaint volume remains relatively low considering the company’s size. The majority of Stripe’s clients appear satisfied with its transparent pricing and ease of use. Nevertheless, the company’s reserve policy, cancellation policy, and customer support are the primary sources of dissatisfaction among customers.

Business owners are advised to thoroughly review Stripe’s terms of service and compare it with other e-commerce merchant account providers before making a decision. Considering the strengths and weaknesses of different providers can help businesses identify the most suitable option for their specific needs.