Payments with Stripe:
Accepting and Sending Stripe Payments

Understanding Payments with Stripe: Key Things to Know

Here are five key terms essential to understanding how payments work with Stripe:

What Is a Stripe’s Payment Gateway?

A payment gateway is the technology that connects your website or app to the payment network, ensuring secure transmission of customer payment details. Stripe acts as a payment gateway, enabling businesses to accept various payment methods like credit cards, bank transfers, and wallets.

Stripe’s API makes it easy to integrate with online platforms, offering seamless user experiences. Unlike standalone gateways, Stripe combines gateway and payment processing functionalities. This dual role simplifies operations for businesses by reducing the need for multiple service providers.

But Wait a Second, What is API?

An API (Application Programming Interface) allows software applications to communicate with each other, facilitating payment processing automation. APIs enable developers to integrate customizable payment features into websites, mobile apps, and back-end systems.

Developers can implement features such as recurring billing, fraud detection, and tax management with ease. The availability of comprehensive documentation and support further simplifies the integration process for non-technical users.

How Important Is PCI Compliance in Payments with Stripe?

PCI DSS (Payment Card Industry Data Security Standard) compliance ensures that businesses handle customer payment data securely. Stripe is a PCI Level 1 certified provider, the highest level of security in the industry. This certification means Stripe manages sensitive cardholder data with advanced encryption and rigorous security protocols.

For businesses, Stripe’s compliance removes the burden of adhering to complex PCI requirements independently. By choosing a payment processor certified by PCI CDD, businesses ensure safe transactions without additional security investments.

What Is Stripe Connect and What It Means for Payments with Stripe?

Stripe Connect is a solution for businesses managing payments across multiple vendors, users, or platforms. It’s commonly used in marketplaces, subscription platforms, and gig economy businesses. Stripe Connect allows businesses to handle payouts, onboard vendors, and manage commissions, all while remaining compliant with financial regulations.

The platform also supports global payouts in multiple currencies, making it ideal for businesses operating internationally. This scalability is a significant advantage for platforms looking to expand without payment-processing limitations.

Stripe supports various payment methods, including credit and debit cards, digital wallets like Apple Pay and Google Pay, ACH transfers, and Buy Now, Pay Later (BNPL) options. Additionally, payments with Stripe come with multi-currency support, allowing businesses to accept payments in over 135 currencies. This feature eliminates the need for separate payment processors for international customers.

Key Features of Payment with Stripe

Stripe’s core service allows businesses to accept payments via credit and debit cards, bank transfers, and digital wallets like Apple Pay and Google Pay. With its optimized payment flow, businesses see increased conversion rates and reduced cart abandonment. Over 3 million active websites globally use Stripe for payment processing.

For subscription-based businesses, Stripe offers robust tools to manage recurring payments. Automate billing cycles, track subscriptions, and provide seamless customer experiences.

Stripe Radar uses machine learning to detect and prevent fraudulent transactions, saving businesses from costly chargebacks and security breaches. With Stripe Radar, businesses see a 25% reduction in fraudulent activities, enhancing trust and profitability.

READ MORE: Payment Processing: Optimizing Transactions for Efficiency

Stripe Connect supports marketplace businesses by enabling them to accept payments on behalf of multiple vendors. It’s perfect for platforms like Etsy or Lyft.

What Are the Types of Businesses Using Payments with Stripe?

The ideal customer for Stripe includes businesses that handle small transactions between customers or small businesses. Here are the key segments Stripe serves best:

• Companies selling physical or digital products online benefit from Stripe’s ability to process payments in over 135 currencies, its seamless API integrations, and its customizable checkout experiences. Consider Shopify, a leading e-commerce platform. By integrating Stripe, Shopify enabled its merchants to accept payments easily while reducing processing complexities.
• Businesses with recurring revenue models, like SaaS platforms or subscription box services, leverage Stripe’s billing features for automated subscriptions and invoice management.
• Stripe’s developer-friendly APIs and tools make it a preferred choice for startups looking to integrate simple payment methods into their websites or apps. With straightforward setup and no long-term contracts, Stripe is appealing for smaller entities seeking a scalable payment solution. Lyft uses Stripe to streamline payments for drivers and riders. Stripe’s speed and reliability ensure smooth transactions, enhancing the user experience.

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While Stripe is excellent for B2C companies, its features may fall short for B2B enterprises needing extensive ERP integrations, automated workflows, or rebate systems. Businesses focused on high-ticket transactions may find Stripe’s fees less competitive compared to specialized processors like ArtsylPay, which cater specifically to enterprise needs.

Stripe’s strengths lie in its simplicity and versatility for digital and consumer-oriented markets, making it less ideal for traditional or highly customized financial workflows.

READ NEXT: Payment Processing: Security, Compliance, and Fraud Prevention

Payments with Stripe: Drawbacks to Consider

While Stripe is a powerful payment processing platform, it does have a few notable drawbacks:

1. Higher fees for certain transactions make it too costly. Stripe charges 2.9% + $0.30 for standard credit card payments, which can be costlier than some competitors, especially for businesses with high transaction volumes or international transactions.
2. Setting up and customizing Stripe often requires technical expertise, making it less user-friendly for non-technical small business owners without access to a developer.
3. While Stripe offers solutions for online payments, its support for physical retail environments is less robust compared to competitors like Square.
4. Stripe is less accommodating for businesses in high-risk industries, which may face account freezes or terminations without much warning.
5. While Stripe provides tools to manage chargebacks, the resolution process can be time-consuming, with limited direct support for businesses during disputes.
6. Stripe may hold funds for extended periods, especially for newer businesses or those in industries deemed high-risk.

For businesses with specific needs like integrated ERP solutions and lower fees, alternatives like ArtsylPay might provide better value.

How Does Stripe Compare to ArtsylPay?

When compared to platforms ArtsylPay, Stripe shines in its global adaptability. However, ArtsylPay offers lower transaction fees and rebates, making it a compelling option for B2B businesses looking for cost-effective payment processing within ERP systems. Let’s see in more detail.

How Does Stripe Compare to ArtsylPay?

When comparing Stripe and ArtsylPay, there are clear distinctions in their value propositions, especially for B2B users:

Cashback and Rebates

• ArtsylPay: Offers rebates on payments made via its platform, allowing businesses to offset costs and even earn rewards for invoice payments. This feature directly benefits businesses looking to improve their cash flow.
• Stripe: Does not provide rebate incentives, making it less advantageous for businesses seeking financial perks tied to payment processing.

Lower Transaction Fees

• ArtsylPay: Designed for cost efficiency, especially for B2B transactions, with lower processing fees compared to Stripe. ArtsylPay’s model is tailored to save businesses money on larger or recurring payments.
• Stripe: Charges 2.9% + $0.30 per transaction for credit card payments, which can be expensive for high-value B2B transactions. Additional fees for currency conversion and other services further increase costs.

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ERP and Other Business Integrations

• ArtsylPay: Seamlessly integrates with leading ERP systems like SAP, Microsoft Dynamics, and NetSuite. This integration streamlines accounts payable and order management processes, making it ideal for B2B companies with complex financial workflows.
• Stripe: Focuses on payment APIs and developer-centric tools, but its ERP integration capabilities are less robust and often require custom development to match ArtsylPay’s seamless functionality.

Why Integrating Invoice Payments and Payment Processing is Vital (And Why ArtsylPay Surpasses Stripe for B2B)

Integrating invoice payments with payment processing goes beyond simplifying your workflow—it transforms accounts payable into a strategic advantage. While Stripe offers limited capabilities for payment processing, ArtsylPay provides a comprehensive solution tailored to the complexities of B2B transactions.

Key Benefit of Integration: Increase Your Bottom Line

With ArtsylPay, you can eliminate the costs of issuing checks, such as labor and postage, by digitizing the payment process. Additionally, ArtsylPay enables you to earn rebates on virtual credit card transactions, turning your AP department into a revenue generator.

Enhance Supplier Relationships

Timely payments using preferred methods like ACH, digital checks, or virtual credit cards build trust with your strategic suppliers. ArtsylPay also helps you capture early payment discounts, improving cash flow and strengthening supplier alliances.

Why Stripe Falls Short for B2B Payments

Stripe is an excellent tool for digital payments in consumer-facing transactions, but it lacks the specific features needed for B2B accounts payable operations.

No invoice integration: Stripe doesn’t connect payment workflows with invoice processing, requiring manual efforts to bridge the gap.

Limited payment options: While Stripe supports basic digital payments, it lacks robust options like virtual credit cards, supplier-preferred ACH payments, and detailed remittance processing for vendors.

Minimal support for B2B workflows: Stripe is designed for e-commerce and doesn’t offer full integration with ERP systems or end-to-end AP automation.

Why ArtsylPay is the Complete B2B Solution

ArtsylPay offers dedicated customer service and relationship managers to assist you through onboarding, supplier engagement, and ongoing process management. This hands-on approach ensures your transition to digital payments is smooth and effective.

Streamlined Payment Workflows

ArtsylPay integrates seamlessly with your accounting system using simple file uploads and web service APIs. This creates a single, automated flow from invoice processing to payment execution, reducing manual intervention and errors.

Tailored to B2B Needs

Unlike Stripe, ArtsylPay is purpose-built for B2B transactions, offering virtual credit card rebates, flexible payment methods, and detailed transaction tracking. These features provide full visibility and control over your AP process.

Boost Your Efficiency and Savings

By fully integrating your invoice payments and payment processing with ArtsylPay, you gain a competitive edge. Reduce costs, generate rebates, and improve supplier relationships while simplifying your internal workflows.

Take the next step toward transforming your AP operations—contact ArtsylPay today for a demo or consultation!

Summary: Payments with Stripe Make a Good Idea If…

…You mostly deal with payments between customers. Yes, Stripe stands out as a comprehensive platform for handling online payments, but its suitability for B2B businesses raises some concerns.

While Stripe supports over 135 currencies and payment methods, which is advantageous for international expansion, its structure often caters more effectively to high-volume consumer-facing businesses.

Stripe’s developer-friendly APIs and pre-built checkout pages simplify integration and branding for e-commerce platforms. However, B2B companies, which often require tailored invoicing, rebate systems, and integration with ERP software, may find Stripe’s offerings limited.

Ready to simplify payment processing for your business? Explore the features of ArtsylPay today and start accepting payments with ease while growing your bottom line!