Small Business Sunday: Accept Credit Cards The Web 2.0 Way With Stripe

Processing credit card transactions online was a challenge years ago, but then companies like Pay Pal and Authorize.net paved the way for a new way to pay and get paid online. There was a social change, a tipping point where buying things online went from being scary and unsafe-feeling to the norm.

Pay Pal was a major pioneer in this space lowering the barrier of entry so that anyone with a website could accept payments. Authorize.net was the step-up for more serious merchants that didn’t want to direct users through the less-than-glamorous Pay Pal interface.

Here’s the problem, there really hasn’t been very much change in the payments space for quite a while. Well I’m excited to say there’s a new entrant to the space – Stripe and it looks like they’ve created the next evolution of web payment gateways.

Stripe labels themselves as a platform that provides “Payments for developers.” What this really means is that they make it incredibly easy for developers to integrate their solution into their own platform. This is the payment system we are using for Appraiso and I can tell you that our developer has been blow-away by how easy it has been to integrate Stripe into our software.

Solutions like Authorize.net offer similar functionality but with a much more laborious and somewhat archaic process for the developer. I think they have had so many customers, for so long, they haven’t felt the need to update their development platform. This means that it takes longer to setup your payment gateway and there are greater chances of errors.

Stripe goes the Web 2.0 route of making things simple both for the user and the developer. We are fans and I think you will be to. I’m not being paid a dime by Stripe to write this article, it’s a solution we use ourselves and I think you’ll be very impressed if you take it for a spin!

{ 7 comments… add one }

  • Attila Steven C March 18, 2012, 10:14 pm

    Great timing. I was this close to submit two more applications to MerchantPlus this coming week. Thanks Morgan!

    Reply
    • Morgan Linton March 18, 2012, 10:16 pm

      Absolutely! I think you’ll really like Stripe!

      Reply
      • Attila Steven C March 19, 2012, 3:51 am

        Dude, Disquss just informed me you replied to my comment ON ANOTHER website. So cool.

        Reply
  • John3786 March 19, 2012, 6:07 am

    Direct from Stripe’s website:

    “We automatically subtract Stripe’s fees before you’re paid. Each day’s charges are paid seven days later. Payouts are to the bank account you specify on your account page. You can view each transfer to your bank account, and the reason for the amount, on your transfers page. ”
    *** Why the 7 days wait?

    “Am I charged for refunds?
    Refunds are free, though the fees from the original charge can’t be returned to you.”
    *** So they get to keep the 2.9% + .30 cents in the event of a refund. This may not work for all etailers.

    Is there a fee for chargebacks?
    Yes, $15. There’s more information on our charge backs page.
    *** Does anyone know what PayPal and MerchantPlus charges for chargebacks?

    Reply
    • John3786 March 20, 2012, 6:30 am

      So I guess Stripe is not that great after all.

      Reply
      • Morgan Linton March 20, 2012, 10:53 am

        What makes it not great? Have you read the terms for other services like Authorize.net? Stripe’s is actually one of the best!

        Reply
        • John3786 March 22, 2012, 5:24 am

           Hi Morgan,

          I compared with MerchantPlus.

          – They don’t have a 7 days hold. This may not matter on smaller transaction. But on larger transaction, Stripe could generate interest on having this cash for an extra 5 days (when comparing to a typical 24-48 hours hold by other merchant providers). By getting the fund earlier, I personally could make money by having the fund in money market for the 5 days. In brief, I don’t like the 7 days hold policy by Stripe.

          – For refund, they will take away the 2.9%. This is a big ouch.

          My 2 cents.

          Reply

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