How Stripe Handles Payments: A Guide To Payment Methods

By Author: Invoice Temple
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A single payment option is not enough for businesses; multiple options are crucial for customers. Using payment methods like Stripe and PayPal, you can easily accept credit card payments. Stripe is a merchant service provider with flexible solutions for both online and offline transactions. PayPal is a leading online payment provider for secure digital transactions.

Stripe is the perfect payment solution for businesses with both small-scale and large-scale sales, offering the flexibility to process a variety of payments both offline and online.

While Stripe is widely used by merchants in the United States and the United Kingdom, its market share is higher in France, as indicated by research focused on website technologies, specifically payment acceptance and processing.

What is Stripe?

Stripe is an online payment processing platform that enables businesses to accept customers payments through debit or credit cards. Stripe offers a comprehensive solution for businesses seeking to process credit cards and other digital payment options.

It is user-friendly, and you don’t have any problem ...
... receiving and processing payments made via Stripe from any of your valuable clients.

With Stripe, your business can accept payments through various methods beyond cash and checks for a fee. Funds are automatically placed in your merchant account and are transferred to your business checking account the next business day.

How Does Stripe Work?

Stripe has streamlined payment processing for businesses, offering a simple and user-friendly experience. Here’s how it works:

You receive the customer’s credit or debit card details (either online, in person, or by phone)
The card details are inputted by you or the customer into Stripe’s payment gateway, with all information being securely encrypted by Stripe.
Stripe passes the card details to the acquirer, which is a bank responsible for processing the transaction on your behalf.
The payment goes through the customer's credit card network or bank for processing.
The bank either accepts or denies the transaction.
Stripe’s payment gateway relays the decision from the issuing bank back to the customer.
Once the issuing bank approves the transaction, you can move the funds from your Stripe account to your business bank account through the Stripe dashboard, minus the applicable fee.
A sale confirmation sent to both the buyer and the seller
How Much Does Stripe Charge?

The payment processing fee charged by Stripe to merchants varies based on the payment method used. Here is the fee structure:

In-Person Transactions: Stripe charges a fee of 2.7% of the total amount, plus $0.05, for each in-person card transaction.
Online Transactions: Stripe charges a fee of 2.9% of the total sales amount, plus $ 0.30, for each online card transaction.
Manually Keyed Transactions: For manually entered card payments, such as those keyed into the Stripe Dashboard, the fee increased by 0.5%, raising it to 3.4% plus $0.30 per transaction.
International Card Transactions: The total fee for processing an international credit card payment through Stripe is 3.9% of the total amount, plus $0.30.
What Payments Does Stripe Support?

Stripe offers a comprehensive suite of payment methods to streamline transactions for both businesses and their customers. These include:

Credit cards
Debit Cards
Bank Transfers
Apple Pay
Google Pay
Buy now, pay later
Customers can make payments through various channels, including in person, online, or via mobile devices.

Integrating Stripe's secure payment methods helps businesses offer a smooth experience, catering to various customer preferences and boosting conversion rates. For efficient invoicing, InvoiceTemple provides a user-friendly platform with customisable templates, client management, and inventory tracking. Combining Stripe’s payment processing with InvoiceTemple’s invoicing tools streamlines financial operations and enhances efficiency.