What Is Stripe & How Does It Work

Stripe is a technology company that provides an online payment processing platform allowing all businesses to accept and manage payments over the internet. Stripe offers a suite of APIs and tools that enable businesses to process payments, manage subscriptions, prevent fraud and more. Its platform supports a wide range of payment methods including credit and debit cards, digital wallets and bank transfers. Stripe is used by businesses of all sizes from small startups to large enterprises and operates in over 40 countries around the world.

How Does Stripe Work

Stripe works by providing a set of APIs and tools that businesses can use to integrate payment processing functionality into their websites, mobile apps or other online platforms. Here’s a general overview of how Stripe works:

Business integrates Stripe: The business sets up a Stripe account and integrates Stripe’s APIs and tools into their website or app.

Customer initiates payment: The customer initiates a payment by entering their payment information into the payment form on the website or app.

Payment information is sent to Stripe: When the payment form is submitted, the payment information is securely sent to Stripe’s servers.

Payment is authorized: Stripe processes the payment information and either approves or declines the payment based on factors like the availability of funds, fraud prevention measures and other criteria.

Payment is transferred: If the payment is approved, the funds are transferred from the customer’s account to the business’s Stripe account.

Business receives payment: The business can then access the payment funds in their Stripe account and manage them as needed.

Stripe also offers additional features like subscription management, fraud prevention tools and more depending on the needs of the business.

What Types Of Payments Can Be Accepted Through Stripe

Stripe supports variety of payment methods including:

Credit and debit cards: Stripe can process payments made with most major credit and debit cards including Visa, Mastercard, American Express, Discover, JCB and Diners Club.

Digital wallets: Stripe supports payments made with popular digital wallets like Apple Pay, Google Pay and Microsoft Pay.

Bank transfers: Stripe can accept payments made via bank transfers which is also known as ACH or SEPA payments in many countries.

Local payment methods: Stripe supports a variety of local payment methods in different countries such as Alipay in China, iDEAL in the Netherlands and Bancontact in Belgium.

Alternative payment methods: Stripe can process payments made with various alternative payment methods such as Bitcoin, WeChat Pay and more.

The specific payment methods that are available to a business may depend on their location and the countries they do business in.

What Are The Fees For Using Stripe

Transaction fees: Stripe charges a per transaction fee for each successful payment processed through its platform. The fee is currently 2.9% + 30 cents for transactions in the United States and may vary in other countries.

Subscription fees: Stripe charges a monthly fee for businesses that use its subscription management features. The fee is currently $20 per month in the United States and may vary in other countries.

There are also additional fees for certain services or circumstances such as chargebacks, international payments and currency conversion. The specific fees that a business will pay depend on a variety of factors including the country they are based in, the types of payments they accept and the specific features they use on the Stripe platform.

What Security Measures Does Stripe Have In Place

Stripe takes security very seriously and has implemented multiple measures to protect its platform and its customers’ data. Some of the key security measures Stripe has in place include:

Compliance with industry standards: Stripe is PCI DSS (Payment Card Industry Data Security Standard) Level 1 certified which is the highest level of certification for payment processors. It is also compliant with other industry standards such as SOC 1, SOC 2 and SOC 3.

Encryption: Stripe uses 256 bit SSL encryption to protect data in transit and encrypts sensitive data such as credit card numbers when it is stored on its servers.

Two factor authentication: Stripe offers two factor authentication to help prevent unauthorized access to its platform.

Fraud prevention: Stripe has a suite of fraud prevention tools that help detect and prevent fraudulent transactions including machine learning algorithms and advanced fraud detection filters.

Access controls: Stripe restricts access to its platform and customer data to only authorized personnel and employs strong password policies and other access controls.

Monitoring and alerts: Stripe has continuous monitoring and alerting systems in place to detect and respond to potential security incidents.

These are just a few of the security measures Stripe has in place. Stripe also regularly tests and audits its security controls to ensure they are effective and up to date.

Stripe Integration With Other Platforms & Tools

Stripe integrates with a wide range of other platforms and tools including popular ecommerce platforms, content management systems, billing and invoicing software and more. Some of the common integrations for Stripe include:

E-commerce platforms: Stripe integrates with a variety of ecommerce platforms such as Shopify, WooCommerce, Magento and BigCommerce allowing businesses to accept payments on their online stores.

Content management systems: Stripe can be integrated with popular CMS platforms like WordPress and Squarespace allowing businesses to accept payments directly on their website.

Billing and invoicing software: Stripe can be integrated with billing and invoicing software like QuickBooks, Xero and FreshBooks allowing businesses to manage payments and invoices in one place.

Analytics and reporting tools: Stripe can be integrated with analytics and reporting tools like Google Analytics and Mixpanel allowing businesses to track payment data and customer behavior.

Stripe offers a robust API and developer tools making it easy for businesses to build custom integrations and applications that work with Stripe. Additionally, Stripe has an app marketplace where businesses can find pre built integrations and tools to extend the functionality of Stripe.

Does Stripe Offer Any Fraud Protection

Stripe offers a range of fraud protection tools to help businesses prevent and detect fraudulent transactions. These tools use machine learning algorithms and advanced fraud detection filters to analyze payment data and identify potentially fraudulent transactions. Some of the key fraud protection tools offered by Stripe include:

Radar: Stripe’s machine learning fraud detection system which uses advanced algorithms to analyze payment data and identify potentially fraudulent transactions.

3D Secure: Stripe supports 3D Secure which is an authentication protocol that adds an additional layer of security to online payments by requiring the cardholder to enter a password or code.

Verified Identity: Stripe also verifies the identity of businesses and users to reduce the risk of fraud and prevent money laundering.

Custom fraud rules: Stripe allows businesses to create custom fraud rules to block specific types of transactions or to flag suspicious activity for manual review.

Chargeback protection: Stripe’s chargeback protection feature helps businesses to prevent disputes and chargebacks by providing automated responses and evidence submission.

These tools are designed to help businesses protect themselves and their customers from fraud and can be customized to meet the specific needs of each business.

How Long Does It Take To Set Up Stripe Account

Setting up a Stripe account is typically a quick and straightforward process. The time it takes to set up a Stripe account can vary depending on the complexity of the business and the specific requirements in their country, but generally it can be completed in a matter of minutes. To set up a Stripe account, a business needs to provide some basic information such as their name, email address and business details and then verify their identity and bank account information.

Once a business has completed the necessary steps to verify their account, they can start accepting payments through Stripe. Stripe provides clear documentation and support throughout the setup process to make it as easy as possible. In some cases, additional verification steps may be required such as for high risk industries or larger transactions and this may take longer. However, for most businesses, setting up a Stripe account is a quick and hassle free process.

Stripe Customer Support Services

Stripe offers customer support via email, chat and phone and provides extensive documentation and resources for developers and businesses. Stripe’s customer support team is available 24/7 to help with any questions or issues that arise. Businesses can contact Stripe’s support team via email or chat, and phone support is available for urgent issues.

In addition to its customer support team, Stripe provides a wide range of documentation and resources to help businesses get the most out of its platform. This includes developer documentation, guides and tutorials as well as a knowledge base and community forum where businesses can get help from other Stripe users.

Stripe also offers a range of professional services such as custom development, data migration and account management for businesses that need additional support. These services are designed to help businesses optimize their use of Stripe and get the most out of the platform.

How Stripe Handle Disputes & Chargebacks

Stripe has a process in place to help businesses handle disputes and chargebacks which are initiated by a customer’s bank. If a customer disputes a charge or requests a chargeback, the funds are immediately frozen and Stripe will notify the business of the dispute.

To handle a dispute, the business can provide evidence to support the validity of the charge. This evidence can include documentation, receipts and correspondence with the customer. Stripe provides a dashboard where businesses can manage disputes and upload any necessary evidence.

Stripe’s chargeback protection feature can also help businesses to prevent disputes and chargebacks by providing automated responses and evidence submission. This feature allows businesses to set up rules for handling disputes such as issuing refunds or submitting evidence and Stripe will automatically respond to disputes that meet those criteria.


Stripe is an online payment processing platform that allows businesses of all sizes to accept and process online payments. Stripe is known for its ease of use, flexibility and scalability making it a popular choice for businesses of all sizes and industries. With its powerful features, reliable support and innovative technology, Stripe is helping businesses to grow and thrive in the rapidly evolving world of ecommerce.