Stripe: Far More Than a Payment Gateway for eCommerce
Miguel Nicolás
10/12/2024
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Stripe is far more than a payment gateway for eCommerce. Let us tell you everything it can do for you.
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Years ago, Oleoshop launched its payment integration with Stripe for our online stores. Its potential was immense, and over time, it has proven to be a solid bet.There are few alternatives in the market that surpass Stripe in terms of simplicity (for both the user and the merchant), versatility, supported payment methods, or security. In this article, we will delve into its main features and functionalities, highlighting its strengths but also discussing some areas where it could improve.Let’s dive into Stripe.
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What is Stripe?
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If you have made it this far, you probably already know that it is a platform to manage online payments. What you might not know is that they are true specialists in financial solutions and go far beyond being just another virtual POS system.They offer a wide range of services such as:
- In-person payments: If you have a physical store, this option allows you to integrate all operations with a single provider. It is simpler and cheaper because you can even operate without extra hardware (yes, without a card terminal).
- Fraud prevention tools: Their Radar system uses machine learning to create algorithms that very precisely evaluate the risk of each transaction. What is the best side? It is fully integrated into the platform, so there is no need for additional addons or plugins.
- Authorization optimization system: This functionality analyzes requests individually to prevent denying viable transactions. It also includes features designed to enhance the customer lifecycle, such as automatic credit card data updates.
On top of this, Stripe offers a comprehensive accounting suite that includes invoicing, tax management, report generation, and more.In short, Stripe is a complete financial software solution. The team behind it includes not only tech experts but also accounting specialists from various countries. -
Stripe for eCommerce
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Why should you consider using Stripe in your online store? Here are the main advantages this platform offers for eCommerce.
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#1 – Wide Variety of Payment Methods
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This is a critical factor in boosting the conversion rate of an online store. Users have their preferred payment methods, whether due to availability or trust. If your store supports that method (credit cards, PayPal, Bizum, Apple Pay, Google Pay, etc.), you eliminate a barrier to sales.Stripe understands this well, which is why they offer over 100 international payment methods, including the ones mentioned and many more. It even includes advanced options like payment via link sharing.Additionally, Stripe implements specific solutions for subscription, based businesses, enabling recurring payments.
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#2 – Smart Payments
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Behind every checkout process lies a wealth of research. Creating a functional solution that balances only requesting the necessary data while ensuring the best user experience is a real challenge.Stripe has designed a one-step checkout system that eliminates much of the friction during payment. Additionally, with its global focus, it offers different versions tailored to the needs of various markets and audiences.
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#3 – Less Fraud, Lower Risk
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As mentioned earlier, this company has integrated a highly advanced fraud prevention system. This feature, known as Stripe Radar, reduces fraud by an average of 32%, making it an incredibly valuable addition.How does it work? By managing risk data, it automatically assigns a risk level to each transaction. The results of this filter include:
- Transactions blocked due to clear fraud risk.
- Allowed and viable transactions.
- Transactions sent through 3D Secure (a system developed by VISA and Mastercard requiring additional verification via SMS).
- Other transactions that need manual validation by the merchant.
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How Much Does Stripe Cost for My eCommerce?
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We have discussed the good stuff, but let’s talk about the costs. This cutting-edge technology and extensive features come at a price.You’re probably wondering how much Stripe Payments costs.The short answer is:
- 1.5% + €0.25 per transaction for any standard card within the European Economic Area.
- 2.5% + €0.25 per transaction for any UK card.
- 1.2% + €0.25 per transaction for link-based payments.
These are the most common operations for any online store. However, if you want more details about other scenarios (premium cards, international cards, bank transfers, etc.), it is advisable to check their official pricing page.If the standard plan does not fully meet your needs, Stripe can create a custom proposal for you. -
As you can see, Stripe is far more than a payment gateway, and that is precisely why we decided to integrate it into Oleoshop’s virtual stores.