Stripe Makes Subscription Billing Easy for Start-Ups, But Seasoned Merchants Should Avoid the High Fees

Much has been made lately of Stripe, an upstart in the realm of web-based payment processing. From powering the payment processing on uber-successful apps

Much has been made lately of Stripe, an upstart in the realm of web-based payment processing. From powering the payment processing on uber-successful apps like Lyft, and partnering with Apple and Twitter, 2014 was a good year for the four-year-old company.What sets Stripe apart is that it’s built on agility for startups, allowing them to bypass the common complications of payment processing through a traditional merchant account. Essentially it’s a suite of APIs that allow for simple and easy payment processing directly by the merchant.Stripe charges 30 cents per transaction atop a 2.9 percent fee on the amount of the transaction. Despite taking a large percentage of what a regular credit card processor would, there are no fees for setup, monthly use, minimum charges, validation, card storage, and failed payments. According to their website, earnings are transferred on a 2-day rolling basis.Stripe offers subscription enterprises metered billing, per-seat pricing, add-ons and options for customization, and multiple subscriptions per customer. A full implementation guide can be found here.While there is a growing cacophony of payment processors in this space, Stripe’s ease-of-implementation can save money for those looking to launch a subscription-based business. However, existing merchants may be wary of the relatively high per-transaction percentage fee and should consider this if looking to change their payment processing system.For more payment processing advice, check out our resources on Subscription Site Insider.

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