Stripe Review 2021

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    If you’re on the market for a payment processing system, then you’ve probably encountered Stripe a few times before. Stripe ranks among the top payment processing service providers in the world and caters to brick-and-mortar and online businesses of all sizes.

    However, business owners shouldn’t blindly jump into the platform based on hype and media attention alone. Several factors contribute to a functional payment processor. Wholly neglecting customer service, hardware reliability, transaction speed, and data security will only hurt your business in the long run. 

    Don’t worry if you find the different terms we mentioned confusing—we’re here to help! Payment processing involves a complex, intricate process, which many first-timers are unfamiliar with yet. 

    To give readers a proper starting point, we made an objective review of Stripe’s payment processing system. This guide will equip you with the information necessary to make a well-informed decision on whether to use Stripe or not.


    Stripe’s Background and History

    Stripe, officially known as Stripe, Inc., is a California-based payment processing company founded in 2010. Despite their relatively short history, they already classify as one of the most prominent players in the industry. Their company has a current value of $35 billion and processes more than a hundred billion dollars worth of transactions per annum.

    What makes Stripe unique is its impact on the commerce industry. Ever since Stripe started offering payment processing services, the number of SMBs has shot up dramatically. The platform has more than two million users, most of which are small- to medium-scale enterprises.

    Of course, Stripe doesn’t limit its services to small-scale entrepreneurs. Some of their largest clients include Lyft, Pinterest, Blue Apron, and Under Armour. Apart from a solid lineup of well-known clients, they also have financial backing from tech giants Salesforce, Twitter, and even Tesla’s Elon Musk.

    Pros and Cons of Stripe 


    • Fair, predictable flat-rate pricing plan
    • Top-notch eCommerce customization
    • Streamlined payment processing reports
    • Accommodates U.S. and international merchants


    • Does not accept PayPal payments
    • Not suited for high-risk merchants
    • Platform requires technical know-how

    Stripe’s Services 

    Stripe offers an extensive set of features and services, which include:

    • Payment Processing: Of course, Stripe’s number one service is payment processing. They offer a broad range of POS hardware devices and online payment processing tools for modern, hybrid businesses.
    • Automatic Reconciliation: Stripe automatically reconciles bank statements and invoices with your virtual bank account. Not only does this make bookkeeping significantly easier, but it also eliminates the need for merchants to disclose sensitive bank information per transaction.
    • eCommerce Integration: Digital entrepreneurs can utilize Stripe’s eCommerce integration tools. They offer a straightforward, merchant-friendly platform that allows users to create fast, no-lag online processors without coding anything.
    • Automated Billing: If you primarily process individual transactions, use Stripe to send one-off payments. Meanwhile, SMBs that offer subscription-based services can rely on Stripe’s payment management platform to automatically collect recurring payments.
    • Radar: Mitigate the risk of fraudulent transactions with Radar. The system uses AI technology to identify, detect, and resolve anything that might compromise the security of your eCommerce store.
    • Automated Payouts: Paying individual invoices to your stock supplier, freelance workers, and business partners is tedious and time-consuming. Fortunately, you can streamline the process with Automated Payouts. The system allows you to send mass payments to different recipients in bulk.
    • Capital: Stripe offers merchant cash advances and short-term loans. They have a swift application process that clears funds in just one business day.

    Stripe’s Fees and Rates

    Stripe follows a pay-as-you-go payment processing system with an interchange-plus rate of:

    • 2.9% + $0.30 for online transactions
    • 2.7% + $0.05 for swiped, carded transactions
    • 0.8% for automated clearing house (ACH) and Bitcoin payments

    Although their pricing plans are fixed, reviews indicate that Stripe is not wholly closed to processing fee negotiations. Use your transaction volume as a bargaining chip. The site does not explicitly disclose anything, but merchants that process upward of $80,000 monthly might have a shot at lowering the per-transaction rate. After all, 3% of $80,000 already totals $2,400.

    As for the miscellaneous fees, customers can breathe a sigh of relief knowing that Stripe does not charge application or membership fees. Standard packages consist of nothing but the per-transaction pricing model.

    However, prepare for the chargebacks. Stripe deducts a $15 fee for every chargeback, although the company will refund the $15 if the case ends in your favor. Also, Bitcoin and ACH fees max out at $5, so you don't have to worry about the 0.8% fee.

    Bear in mind that these guidelines are for U.S. merchants only. International merchants have to shell out an extra 2% conversion fee for every transaction.

    Unsure whether your business can afford Stripe’s POS system? Processing Card can help! Here’s a quick guide on how to calculate the best rates for card payment processing.

    Reviews and Complaints About Stripe

    Stripe is a reasonably reliable payment processor that charges competitive rates, but the system is not without fault. The primary concern that users have is that Stripe does not process PayPal payments. Considering that PayPal has nearly 400 million active users, your business might miss a lot of potential profits.

    Apart from the inability to process PayPal transactions, customers also complain about Stripe’s lack of customer service. Several users state issues with frozen funds, technical difficulties, and missing contact information. Based on the reviews, Stripe withholds their hotline number and advises customers to reach out via email. Unfortunately, this setup doesn’t sit well with many.

    Final Verdict on Stripe

    Rating: 4.5 out of 5 stars

    Considering Stripe’s security, reliability, and versatility, the platform deserves its positive reputation. They offer fast payment processing, accommodate online and in-person transactions, charge competitive rates, and accept overseas merchants. Given this, Stripe is definitely worth considering.

    To ensure that you reach an objective, well-informed decision, test all the platform’s features out yourself. While they have extensive services, different businesses have varying needs. Again, instead of blindly going with the most highly praised payment processors, make your own decision by reassessing your business goals and comparing several review articles.
    Still on the fence about whether Stripe suits your business? Processing Card encourages exploring other processors first! Check out our comprehensive review of the top payment processors on the market.