Payment Service Providers

Stripe Payments: Is It the Best Option for Your Business?

Read Time: 20 min

Stripe is a popular payment platform that integrates with many websites and accounting software programs. You may have used Stripe to pay invoices issued through Freshbooks or on a website built through Shopify without realizing it. Its spring to popularity can be attributed to its simplicity. You can set up and begin accepting payments in a matter of minutes. But the best option for your business isn’t always what’s popular.

This article will evaluate Stripe payments and examine if it’s the best option for your business. Let’s dive in.

What Is Stripe Payments?

A hand holding a smartphone with another hand reaching out of the phone, providing a shopping bag purchased with stripe payments.

As we discussed, Stripe is a popular payment platform that allows you to send invoices and accept digital payments from your customers. To get a bit more specific, Stripe is a payment services provider (PSP) that allows you to accept payments from a variety of non-cash sources, including:

  • Debit cards
  • Credit cards
  • Mobile wallets
  • International cards
  • ACH payments
  • Other alternative payment methods

They also offer support for 135+ currencies.[1]Stripe. “Supported currencies | Stripe Documentation”. Accessed on March 13, 2024. 

Stripe is also a pay-as-you-go PSP, meaning your account is paid for by taking a percentage of each transaction processed. You will not pay anything just for having an account on file. 

How Does Stripe Work?

Stripe connects your business bank account with your paying customers’ bank accounts. It validates the chosen payment method, facilitates money movement, and secures the data as it moves. 

Let’s take a more in-depth look at the process. Here’s how Stripe works:

  1. First, your customer initiates the transaction by checking out and providing their payment information.
  2. Stripe encrypts the data after they virtually submit the information to secure it.
  3. Stripe then sends that encrypted data to its bank (known as the “acquiring bank”) to process/validate.
  4. The payment will then move through a card network to your customer’s “issuing bank” (the bank that issued their debit/credit card).
  5. The issuing bank approves or declines the requested transaction after verifying the account, the available balance, and fraud checks.
  6. You and your customer receive a notice stating approval or decline.
  7. The transaction gets queued in the day’s batch for processing if approved.

This process happens in a matter of seconds. Stripe will receive the funds within a day or two. After that, you can transfer funds from Stripe into your business bank account. [2]MuleSoft. “What is an API? (Application Programming Interface) | MuleSoft”. Accessed on March 13, 2024.

Who Uses Stripe?

Anyone can use Stripe, but it works best for large eCommerce businesses. That’s why you’ll notice that its best features are designed for online or global businesses. You’re probably already familiar with some big-name online platforms using Stripe as their built-in processor, such as Amazon, Shopify, Zoom, and more.

A person using stripe payments to pay on their smartphone.

One of the most attractive features Stripe offers to these large companies is their open API. An API (Application Programming Interface) is a software feature that allows experienced programmers to create a custom framework to support Stripe’s payment processing. 

This customization means that developers can add the security and functionality of the Stripe payment platform to their existing systems. This makes it an exceedingly popular choice for complicated setups.

Supported Payment Methods

Like any payment processor or PSP, Stripe allows you to accept major credit and debit cards from your customers. Additionally, they offer many preferred local payment options in 34 countries worldwide, including options like Buy Now, Pay Later company Klarna, and iDEAL in the Netherlands.[3]Stripe. “iDEAL payments | Stripe Documentation”. Accessed on March 13, 2024. There are also custom options you can add that allow you to accept ACH (bank-to-bank) payments.

As you use Stripe, you’ll also see plenty of services available to help securely facilitate payments. These include recurring billing, installation support, invoicing, and more.

Stripe Pricing and Fees

Stripe offers prices that are competitive with similar services like Square or PayPal. Stripe uses a flat-rate billing structure and a pay-as-you-go model that collects fees by deducting directly from your customer’s payment before it is deposited into your bank account. There are no monthly subscription fees for using Stripe. 

Additionally, Stripe offers various prices for their services that will only apply to you to the extent you use them. If you plan to run a small-to-midsized online store, you’ll process primarily debit and credit cards through your website. But if your situation is a bit more complicated (like processing checks or multiple currencies), you may be interested in our complete Stripe fee guide, available here

If you’re processing cards online (as most online stores do), the card is not physically present to inspect, swipe, dip, or tap. This is known in the payments industry as a “card-not-present” or “manually entered” transaction (even though, technically, your customer probably had the card in their hand when they typed those details into your website). Stripe charges an additional 0.50% for each transaction processed this way (above the advertised rate).

So generally, these are the rates you can expect to pay when using Stripe (as of October 2023):

Online Payments (Card-Not-Present/Manual Entry)3.4% + $0.30 per transaction
In-person payments (Card Present Entry)2.9% + $0.30 per transaction
ACH transfers0.8% per ACH transfer

Benefits of Using Stripe Payment Processing

There’s no denying it—there are undoubtedly some benefits to using Stripe for your business. These benefits range from security to customization. Here are some of the best benefits of using Stripe payments.

A hand holding an orange gear icon.

Easy to set up and use

Creating an account with Stripe is incredibly simple. As we mentioned earlier in this article, Stripe is a payment service provider, meaning you can set up an account and start taking payments within the same day. That makes it an attractive option for last-minute setups.

A webpage with a blue and orange gear on it.

Simple API integrations

Stripe’s simple API integration is a definite plus for tech-savvy business owners. If you are interested in making a more custom solution for your business/website payments, Stripe’s easy-to-use API makes it possible. It offers a lot of detailed documentation written in clear language so your developer can quickly start building.

A document with a pie graph.

Customization options

Stripe offers a plethora of customization options. Both built-in and custom tools can be configured with ease. Essentially, your coding skills are the limit to your creativity.

Is Stripe Safe to Use? 

Simply put, Stripe is safe to use. Some of the world’s largest companies are powered by Stripe payments, lending credence to Stripe and putting a lot of time and resources into security. They’re quite transparent about their encryption, data storage, testing and debugging, and fraud prevention efforts.

A blue security shield with a green checkmark.

Encryption and stored data

Stripe is dedicated to keeping sensitive data safe when stored and processed. Data is stored, decrypted, and transmitted using a separate hosting infrastructure without connection to its other services.

Stripe will use a tokenization method on primary account numbers, bank account information, and other sensitive data.


Stripe Security Features

  • AVS verification: Verifies the address provided matches the billing address tied to the card.
  • CVV/CVV2 verification: Verifies the CVV code entered matches the one on the card.
  • HTTPS: Ensures the transaction data and page are secure.
  • Audits: Regular self-audits and security testing.

When your customer types their credit card number into the payment form on your website, it is immediately scrambled/codified before it’s sent to the relevant banks. This prevents hackers from intercepting the communication and retrieving sensitive data if your customer opts to store their payment information for a more effortless checkout experience in the future; that stored data is also encrypted and handled with care.

A yellow magnifying glass searching the back of a white credit card.

Fraud prevention

For fraud prevention, Stripe’s built-in tools are designed to catch suspicious transactions. If you want to take fraud prevention to the next level, subscribe to Radar, Stripe’s advanced tool.[4]Stripe. “Stripe Payments | Radar”. Accessed March 13, 2024.

A blue judge's gavel.

PCI compliance

Stripe is a PCI-compliant provider, which means it meets the PCI Security Standards Council standards. To give you some context, there are specific rules payment providers must meet to be certified as compliant under the Payment Card Industry Data Security Standards. [5]PCI Security Council. “PCI Security Standards Council”. Accessed on March 13, 2024. Many rules surround data and how it is handled and stored once received. Additionally, Stripe certifies their compliance each year.

What Is Stripe Connect?

A person using stripe payments to pay for items in an online shopping cart.

Stripe Connect is a Stripe integration that offers more options for routing transactions. For example, if you run a business aggregating products from multiple websites, you can use Stripe Connect to collect customer payments or route payments to vendors.

In another example, imagine you create a platform (like Shopify) that supports other businesses. Stripe Connect lets you collect payments from businesses for using your platform or gives these businesses the ability to collect customer payments without your involvement.

There’s more to it because you can use Stripe Connect to create your custom payment workflow. Still, the easiest way to summarize it is that it’s a custom transaction router that can support you beyond traditional customer–merchant relationships.

Understanding Stripe Integrations

Stripe offers a lot of integrations that are already built out and ready to go. This makes connecting Stripe with the following popular integrations straightforward.

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WooCommerce

If you’re using WooCommerce on your website, you’ll be happy to know that Stripe integrates directly with your system. This makes accepting payments through your existing website, shopping cart, and inventory system easy. Connecting Stripe to WooCommerce is relatively simple and can be done by any person without any developer experience.

A grey and white money symbol on top of a green and white dollar bill.

WordPress

Building your site on WordPress provides many payment integration options, including Stripe. Two requirements are needed to integrate Stripe with WordPress: a plug-in and an SSL certificate. Stripe can’t seamlessly integrate with WordPress; however, plenty of plug-ins on the market can easily connect the two.

A blue and green money symbol on top of a white dollar bill.

QuickBooks

Stripe and QuickBooks don’t integrate directly as of the time of writing, but it’s fairly simple to download your Stripe data and upload it into QuickBooks. You’ll want to create a regular schedule (like weekly or monthly) to keep your books looking good.

If you want to connect and automate the two programs (as you’d be able to do with a true integration), you can create a sync through a third-party program (like a Zap through Zapier). [6]Zapier. “Connect your QuickBooks Online to Stripe integration in 2 minutes | Zapier”. Accessed on March 13, 2024.

A dark blue and white money symbol on top of a green and white dollar bill.

Hubspot

There are three types of integrations you do to integrate Stripe with HubSpot. One connects to the quotes module in HubSpot, allowing you to collect payments from issued quotes. The second creates a data sync to update customer data in each system. The third way is to download the Stripe app in HubSpot’s marketplace.

A green and white money symbol on top of an orange and white dollar bill.

Clickfunnels

If you want to collect payments through Clickfunnels and Stripe integration, you’ll be happy to know it’s fairly simple. You must add your Stripe account information to Clickfunnels as a payment gateway. Other prerequisites, such as admin access to your Stripe account and a non-restrictive business type, are needed to complete the integration process.

Downsides of Stripe Payments

Up to this point, we’ve touched mostly on the positives of using Stripe payments. However, the platform isn’t for everyone. Stripe comes with a few downsides that could affect your business.

A green dollar bill transferring hands.

Limited options for in-person payments

Because Stripe exists primarily to make payments easier online, its in-person payment options are more limited. While it has options for in-person payment processing, Stripe tends to fall below the industry standard in terms of functionality compared to competitors.

Note: First, you must purchase a Stripe device for in-person payments.

An orange gear icon surrounded by spinning blue arrows.

Requires technical skills for customization

While it comes with basic functionality out of the box, to get the most out of Stripe, you’ll need to know how to use its open API or hire a developer who can. This limitation may make Stripe less accessible to a standard small-to-medium-sized business.  

As we’ve touched on, the customization options are endless. But only if you know how to use them. Most businesses better serve a solution offering more robust out-of-the-box features than an open-ended platform.

A white x layered on top of a dark blue circle.

May suddenly freeze your account

One of the biggest complaints from Stripe users is Stripe’s tendency to freeze accounts without warning. Since Stripe is the merchant of record on your account, they have full authority over your access to payment processing. That means that unusual activity, like large transactions, more frequent transactions, new customers, etc., may result in your account being frozen.

You may think that situation won’t apply to you. However, minimal underwriting takes place before you access your account. Because of this, Stripe is incredibly vigilant regarding suspicious transactions. This means that they can withhold pending funds and prevent you from accepting new payments for transactions you would consider well within the realm of normal.

Stripe may not be a good solution if your business is new, has irregular processing habits, or is high-risk. A traditional merchant service provider specializing in high-risk industries will be your best bet.

A green dollar bill transferring between two parties, signified by blue and orange arrows.

High transaction fees and foreign currency conversion rate

Stripe has a relatively standard pricing structure compared to similar services like Square or PayPal, but these fees are often higher than those associated with a merchant account.

A fee of $0.30 per transaction is an industry-high transaction fee that is incredibly impactful for businesses with low average ticket sizes. Each service you add with Stripe adds to the flat rate percentage fee, such as an additional currency conversion fee of 1%.[7]Stripe. “Pricing & Fees | Stripe Official Site”. Accessed March 13, 2024. 

Without realizing it, your rates and fees can easily far exceed the standard for merchant payment processing.

An orange info icon inside of a blue circle.

Limited dispute resolution

Suppose you run into payment disputes down the line. In that case, whether it’s a dispute between you and a customer who rightfully deserves the funds in question or a dispute between you and your payment processor (like Stripe), you’ll want a responsive dispute resolution team.

It’s one of those things you may not recognize the importance of until it’s too late, but Stripe is not known for its dispute resolution.

Stripe Prohibited Businesses

A significant problem for many merchants using Stripe is the list of prohibited businesses and products. Prohibited businesses include:

  • Federally illegal drugs (like marijuana or derivative products).
  • Products or services that infringe intellectual property rights.
  • Unfair, predatory, or deceptive services such as multi-level marketing companies, credit repair, etc.
  • Adult businesses, content, or services.
  • High-risk businesses like certain legal services, bail bonds, firearms, gambling, tobacco, etc.

In addition to the prohibited list, there are also restricted businesses.[8]Stripe. “Legal: Restricted Businesses”. Accessed March 13, 2024. If your business falls under those categories, your account will either be banned or under more intense scrutiny for every transaction.

Is Stripe the Right Choice for Your Business?

Now that you have an overview of both the pros and cons of Stripe, let’s discuss the big question: is Stripe the right choice for your business?

Stripe may be the right choice if you’re an online business looking to develop an app, software program, custom shopping cart, or checkout flow for your eCommerce business. If, on the other hand, you are looking for more freedom, affordability, or customer support, you may want to look into some other alternatives (which we’ll get into next).

Is There a Better Option?

A computer representing an ecommerce business using stripe payments.

As a payment services provider, Stripe holds the merchant account for your business. This makes for a more straightforward initial setup but creates a long-term limitation on what you can and can’t do through your account. The best option for most businesses is to create your merchant account through a merchant services provider (MSP).

Think of the difference between an MSP and a PSP as if they were family phone plans. 

  • When using a PSP like Stripe, you’re opening a new line on an existing phone plan. You get a portion of the available data and minutes. In addition, the primary account holder controls your account and can cut you off anytime.  
  • Using a complete merchant services provider (MSP) is like opening your phone plan, allowing you to choose the plan that fits you best. You have control over the account and have a lot more say over how you use it.
A white and blue lightbulb.

Stripe vs the Competition

As we’ve alluded to, there are many Stripe alternatives out there. So, which option is best for your business? 

A primary consideration before setting up your Stripe account is the difference between payment services and merchant services providers. Once you’ve decided, you’ll better understand which Stripe alternative suits you. To help you narrow it down, we’ll go through some Stripe competitors below.


PayPal

Here’s a general overview of Stripe vs. PayPal:

Both Stripe and PayPal:

  • Focus on eCommerce businesses
  • Offer pay-as-you-go flat rate-based pricing
  • Make it easy to set up an account and start processing quickly without setup fees
  • Are payment service providers (PSPs) meaning you do not get your own merchant account with either provider

Major differences include:

  • Developer capabilities (Stripe is much more developer friendly)
  • Fees (they have slightly different rates)
  • Receiving deposits (Stripe deposits automatically; PayPal keeps funds in a holding account until you manually transfer them)

Here is our full Stripe vs. PayPal guide for a full breakdown of the pros and cons.


Square

Here’s a general overview of Square vs. Stripe:

Both Square and Stripe:

  • Offer pay-as-you-go flat rate-based pricing
  • Make it easy to set up an account and start processing quickly without setup fees
  • Are payment service providers (PSPs) meaning you do not get your merchant account with either provider
  • Have a lot of compatible integrations

Major differences include:

  • Stripe focuses on e-commerce businesses, while Square focuses on in-person retail
  • International support (Stripe is much more global-business friendly)
  • Fees they charge for their services

Here is our full Square vs. Stripe guide for a full breakdown of the pros and cons between the two.


Clover

Here’s a general overview of Clover vs. Stripe:

Both Clover and Stripe:

  • Are user friendly
  • Have many compatible integrations
  • Allow you to process most major card brands (AmEx, Visa, MasterCard, Discover, etc.)

Major differences include:

  • Stripe focuses on e-commerce businesses, while Clover focuses on in-person retail through their point-of-sale and inventory device and software
  • International support (Stripe is much more global-business friendly)
  • Fees they charge for their services

Here is our full Clover vs. Stripe guide for a full breakdown of the pros and cons between the two.


Braintree

Here’s a general overview of Braintree vs. Stripe:

Both Braintree and Stripe:

  • Offer an on-site payment gateway
  • Securely handle payments
  • Offer third-party integrations
  • Allow you to process most major card brands (AmEx, Visa, MasterCard, Discover, etc.)

Major differences include:

  • Stripe is a PSP, and Braintree offers a gateway compatible with a range of merchant service providers (MSPs)
  • Stripe is privately owned, and PayPal owns Braintree
  • Braintree offers full-service merchant services (so you receive your own MID number and full-scale merchant account)

For a full breakdown of the pros and cons between the two, here is our full Braintree vs. Stripe guide.


Adyen 

Here’s a general overview of Adyen vs. Stripe:

Both Adyen and Stripe:

  • Allow you to process most major card brands (AmEx, Visa, MasterCard, Discover, etc.)
  • Offer compatible payment options in a variety of countries and currencies
  • Offer easy-to-use out-of-the-box options 
  • And allow for customization

Major differences include:

  • Stripe is a PSP, and Adyen offers you a fully underwritten merchant services account
  • Fees – Stripe charges a flat rate-based fee, and Adyen uses interchange plus pricing (which is widely regarded as both the most transparent and cost-effective pricing structure in the industry)
  • Customer support. Adyen offers a dedicated account manager who provides support as needed. Stripe, on the other hand, offers limited support options (like email or chat).

For a full breakdown of the pros and cons between the two, here is our full Adyen vs. Stripe guide.


Plaid

Here’s a general overview of Plaid vs. Stripe:

  • Plaid is a technology that can be integrated into payment platforms to better verify transaction and user data. It’s targeted toward payment companies, not their users.
  • Stripe is a payment processor that allows you to process transactions through an online or e-commerce store.

You generally interact with Plaid when handling international transfers (through a company like Wise), bank transfers (like through Venmo), or other bank-to-bank transaction types. It doesn’t meet many of the same needs that Stripe does, so they’re not necessarily competitors. 

For a full breakdown of the two companies, here is our full Plaid vs. Stripe guide.


Shopify

Here’s a general overview of Shopify vs. Stripe:

Both Shopify and Stripe:

  • Help you operate an e-commerce/online business
  • Allow you to process most major card brands (AmEx, Visa, MasterCard, Discover, etc.)
  • Offer compatible payment options in a variety of countries and currencies
  • Are payment service providers (PSPs) meaning you do not get your merchant account with either provider
  • Offer easy-to-use out-of-the-box options 
  • And allow for customization

Major differences include:

  • Shopify gives providers flexibility. Though Shopify Payments is their default payment platform, you can change that in your account settings.
  • Stripe and Shopify are easy to use but much easier to implement.
  • Fees. You’ll need a premium Shopify account before you can access Shopify Payments.

For a full breakdown of the pros and cons between the two, here is our full Stripe vs. Shopify guide.


WooCommerce

Here’s a general overview of WooCommerce vs. Stripe:

WooCommerce Payments is an integrated payment solution that allows you to process payments directly within your existing WooCommerce setup. It’s built in partnership with Stripe and has many of the same online payment features.

Major differences include:

  • Stripe is a PSP, and WooCommerce is primarily an e-commerce platform that offers access to a gateway through Stripe. In other words, you can use Stripe and not WooCommerce, but you can’t use WooCommerce Payments without Stripe.
  • Stripe supports a wider variety of currencies and countries than WooCommerce Payments.

For a full breakdown of the pros and cons between the two, here is our full WooCommerce vs. Stripe guide.


Authorize.net

Here’s a general overview of Authorize.net vs. Stripe:

Both Stripe and Authorize.net:

  • Offer pricing on their website
  • Support omnichannel payments (meaning you can accept payments online, in person, or over the phone)
  • Offer a wide range of compatible integrations

Major differences include:

  • Authorize.net can be just a payment gateway (meaning you have flexibility in choosing a merchant services provider and can get your merchant account). Stripe, on the other hand, is just a PSP.
  • Authorize.net has higher-ranked customer support options than Stripe

For a full breakdown of the pros and cons between the two, here is our full Authorize.net vs. Stripe guide.

An orange lightbulb with an orange lightning bolt inside it.

Stripe vs Merchant Account

Once you understand the differences between Stripe and a merchant account (PSP vs MSP, as we went through in the section “Is there a better option?”), it’s easier to see that the better option for most businesses is to set up a full merchant account through a merchant services provider. Some merchant services providers offer a better, more catered solution for your business, usually at a lower price point. If having control of your merchant account is something that is important to you, let us take care of you at PaymentCloud.


It’s time to take control of your business with a merchant account

Get started
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Stripe FAQs

Does Stripe offer loans?

Yes, Stripe offers loans through its Stripe Capital program. This program continually scans Stripe accounts for its eligibility criteria.

There is no way to apply for one of these loans, however. You’ll need a processing history through Stripe that is at least 6 months old, proving you process a minimum of $5000 a year. If you’re eligible for a Stripe loan, you’ll receive an email offering one to you.

Though plans may vary, you can expect to repay your loan through a portion of your processing revenue, meaning that it automatically gets paid back as you operate according to the terms of your original loan agreement.

Is Stripe a payment gateway or processor?

Stripe is both to answer the question directly. It acts as a payment processor and offers a payment gateway. That may sound confusing, so their business model is as a payment processor – they allow businesses like yours to process payments. To process payments, Stripe offers a payment gateway (a technology that allows your customers to process payments) you can connect to your e-commerce store.

Who owns Stripe?

Stripe is a privately held company. Stripe was founded by Patrick and John Collison and was valued at $95 billion as of March 2021. Today, however, the valuation is just over half that amount at $50 billion.[9]CNBC. “Stripe slashes valuation to $50 billion in new $6.5 billion funding round”. Accessed March 13, 2024. 

How long does Stripe take to pay?

Your first successful payment through Stripe will take anywhere from 7 to 14 days to process and deposit into your connected bank account. Once you build a processing history with them, that deposit window will gradually decrease. The actual payout window will depend on things like:

  • Number of payments processed
  • Frequency of deposits to your account (i.e., daily vs. weekly vs. monthly)
  • Size and consistency of payments
  • Your industry
  • Etc.[10]Stripe. “Receive payouts | Stripe Documentation”. Accessed March 13, 2024.

Does Stripe allow CBD sales?

The short answer is no, Stripe does not allow CBD businesses to use their payment processing services. This is because Stripe views CBD businesses and products as high-risk, and Stripe does not allow high-risk companies to use its services. Even if local laws permit the sale and use of CBD products, you’ll need to find a compatible high-risk payment processor.

How does Stripe make money?

Stripe makes money by taking a portion of each transaction you process. If, for example, a customer paid $100 through your website using a debit or credit card, you will receive a deposit in your bank account of $96.30, meaning that Stripe took 3.70% of your sale for themselves.

Every payment processor makes money the same way, for the most part. What varies is the total percentage average of your revenue the processor takes.

Stripe has costs come out of that 3.70%, as all payment processors do. But the average amount Stripe takes per transaction is, for most businesses, higher than that with a more dedicated processor/merchant account.

What is Stripe EEA STEL Aggregation?

When we break down the acronym components, the Stripe EEA STEL aggregation is easier to understand. So let’s start there:

  • EEA: European Economic Area. The European Economic Area includes all EU member states, Iceland, Liechtenstein, and Norway.
  • STEL: Short-Term Establishment License
  • Aggregation: Grouped fees or charges. 

You’ll most likely notice this on your Stripe processing statement or bank account if you’re a business based in the EEA accepting payments in USD and converting them into Euros. This is an extra fee triggered by the conversion, as Stripe aggregates these deposits and processes the currency swap in batches. You can find more information about this in our full article here.

How does Stripe handle refunds?

Occasionally, your business may need to process a refund or chargeback through Stripe. Either way, if you experience a deduction, that deduction will come from your available Stripe credit. So if you have funds pending deposit, Stripe will settle any obligations before sending you the remainder. If your Stripe balance doesn’t cover the debit, it comes directly from your bank account.

Stripe does not charge a fee for processing a refund but doesn’t reimburse the fees paid for the initial transaction. For example, if you process a $100 transaction and get charged $3.70, your customer will get a full $100 refund. But you will only receive $96.30 from Stripe, meaning the transaction still costs you around four percent.

You can process full or partial refunds through your Stripe dashboard by following these instructions:

  • Navigate to your Stripe Dashboard.
  • Find the payment you want to refund from the “Payments” page.
  • Click the expanded options (you’ll see it to the right of the payment), then select “Refund Payment.”
  • By default, it assumes a full refund. Enter a different amount if you’d prefer to issue a partial refund.
  • Choose a reason for the refund from the available options. If you select “Other,” add a note explaining the reason for the refund. 
  • Click “Refund.”

Can I use Stripe for my nonprofit?

Yes. Stripe works with nonprofits to allow you to accept donations/payments from your website and/or other mediums. They offer reduced rates for nonprofits, so make sure you talk to the appropriate department for more information before you set up your account. 

What is a Stripe test card?

Believe it or not, there are many moving parts when you process a debit or credit card. Stripe test cards allow you to evaluate your payment configuration (especially if you’ve created a custom configuration through the Stripe API). These test cards help you isolate issues related to things like:

  • Card brands (Visa, MasterCard, Discover, AmEx, etc.)
  • Debit vs. credit
  • Pin entry
  • Invalid card numbers
  • Expired cards
  • Invalid CVV codes
  • Inadequate bank account balance
  • Refunds
  • And more.

These tests help you verify that cards process correctly and decline properly when they should.

Article Sources

  1. Stripe. “Supported currencies | Stripe Documentation”. Accessed on March 13, 2024.
  2. MuleSoft. “What is an API? (Application Programming Interface) | MuleSoft”. Accessed on March 13, 2024.
  3. Stripe. “iDEAL payments | Stripe Documentation”. Accessed on March 13, 2024.
  4. Stripe. “Stripe Payments | Radar”. Accessed March 13, 2024.
  5. PCI Security Council. “PCI Security Standards Council”. Accessed on March 13, 2024.
  6. Zapier. “Connect your QuickBooks Online to Stripe integration in 2 minutes | Zapier”. Accessed on March 13, 2024.
  7. Stripe. “Pricing & Fees | Stripe Official Site”. Accessed March 13, 2024.
  8. Stripe. “Legal: Restricted Businesses”. Accessed March 13, 2024.
  9. CNBC. “Stripe slashes valuation to $50 billion in new $6.5 billion funding round”. Accessed March 13, 2024.
  10. Stripe. “Receive payouts | Stripe Documentation”. Accessed March 13, 2024.


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