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  • Latest activity 5 Jun

We just discovered Stripe which, frankly, sounds almost too good to be true. Can we in fact go ahead and cancel our existing http://authorize.net and http://e-onlinedata.com accounts?

NOTE: Even if you work for Stripe, I would still (especially?) welcome your Answer: I just want to make sure there's no reason we might even theoretically need these legacy merchant services and accounts.

Thanks! :)
Cristina's AnswerView 3 Other Answers
Cristina CordovaCristina Cordova, business development @ stripe
12 upvotes by Tuhin Kumar, Lachy Groom, Marc Hoag, (more)
Cristina from Stripe here :)

I'd be happy to address a few of the answers already here:

"Many traditional merchant accounts pay overnight. It appears from their website that Stripe takes seven days to pay." - Stripe now pays out on a 2-day rolling basis. A couple thoughts on this:

  • Many payments processors that pay out in less time than Stripe require a reserve of funds, which can tie up a significant amount of capital with your processor. Stripe does not require any reserves, removing all hassles like dealing with a lock-up of funds or renegotiating reserves as your business scales.
  • Payments processors are paid out on varied timelines (for example, anywhere from 2-5 days with major card brands). Therefore, with other processors, you'll often receive payouts on varied timelines. This can mean that if you receive payments on Monday via two different card brands, including one that pays out in 3 days and one that pays out in 5, you'll receive one transfer on Thursday and one transfer on Saturday. This can make it very difficult to reconcile your payments at scale. With Stripe, we instead choose to make accounting simple and enjoyable by including all of your payments in batch transfers, 2 days after the transaction takes place.

"Traditional merchant accounts are less expensive than Stripe if you have adequate volume and do a good job choosing a provider." A couple thoughts on this:

  • With Stripe, you only ever need to work with us for your payment processing needs and we only charge a simple 2.9% + 30 cent per transaction fee. Most processors will quote you a transaction fee and add numerous other fees on top. To compare, Stripe has none of the fees you'll see with other providers such as setup fees, monthly fees, minimum charges, validation fees, fees for American Express, fees for international cards or card storage fees. With many other providers, you'll face an unpredictable fee structure with separate fees from all the parties involved (your merchant account provider, your processor, American Express, a recurring billing service provider, etc.).
  • If it's difficult to determine how much you're really paying, we're happy to decipher your statements and directly compare our all-inclusive rate to the (often many) rates you're already paying. We're very competitive with other providers and offer volume discounts for users processing more than $1MM per year.

"Well I see at least one good reason if you're a startup outside the USA: fees." Some thoughts:

  • While its possible to use Stripe to accept payments from all over the world, for the moment, merchants need to be incorporated in the U.S. or Canada. We are working around the clock to bring Stripe to more countries and this has and continues to be one of our very highest priorities. When we do launch in new countries, our international users will have access to the same great product our existing users love and rave about. We plan to have low and simple pricing when we launch internationally as well. If you're located outside of the U.S. and Canada, you can be notified when we launch in your country by submitting your email address here: https://stripe.com/global

More than the above, we have many products that other traditional services don't. Some examples include Stripe Connect and Stripe Checkout (https://stripe.com/docs/checkout . We'd be happy to provide more context and dicuss your situation specifically - just email us at sales@stripe.com.