WHAT IS STRIPE HOW IT WORKS?
The fact is that Stripe is a “full-fledged payment processor”, which is, to put it mildly, a third-party system of both payments and payment getaways. This means that Stripe allows your business to perform credit and debit card processes and automated clearing house (ACH) transactions both online and offline.
With the support of Stripe, established in 2010, some of the world’s largest and most visible brands on the market, such as Lyft, Under Armor, Blue Apron and Pinterest, also conduct their transactions. It is claimed that at one point or another, 89% of global transactions were made with Stripe. As the Stripe is able to handle as many as 135 different currencies, many companies also use it on a daily basis for international transactions.
Stripe is an extremely feature-rich payment system, but not every company has the capabilities or needs to use them all. Here you can read about how Stripe works and what it can do for you.
How does Stripe work?
Stripe Payments is a payment processing platform. It allows you to make transfers from a customer’s bank account to your company’s account using credit or debit card transactions. This means that it is defined in the simplest way, but we will go into more detail later. If Stripe can be used for many different transactions, you are considering it because you are looking for e-commerce solutions. To get a complete overview of how Stripe works in online retail, you need to read on.
Stripe Payment Tools.
You need both a payment getaway and a payment processor to process and execute online transactions. The payment gateway securely captures and transmits the customer’s credit card payment information to the processor, whose next step is to actually process the transfer. The amounts received from the customer’s bank are then temporarily transferred to the merchant’s account, in this case a third party processor, in this case Stripe, which is a consolidated account where credit or debit card fees are deducted from the total. Next, payments will be routed to the merchant’s account. In fact, it’s all a lot more complicated than what’s being said here, but here you should get an overview of what it’s all about. Stripe combines the functionality of a payment gateway and the payment process, making e-commerce handling extremely easy and convenient for you.
Stripe Development Tools
Stripe’s web development tools are definitely very impressive and very powerful, and unlike many of its competitors, they are completely publicly available, so you can easily understand how to set them up. To use the Stripe REST API, you need two pairs of keys: one for testing and another for live transmission. You can find these on the Stripe desktop from the API menu. Finally, once your account is activated, you have the option to choose between real-time and test keys. Stripe accepts all server-side languages and frameworks, namely Ruby, Python, PHP, Java, Node.js, Go and .NET. Initial setup of Stripe is very easy, and if you use a pre-built checkout like Stripe Checkout, it is primarily for developers with limited experience. By this we mean less than 15 lines of code.
The first thing you need to do is install the Stripe library for your language. You can do this for package managers like “npm” for Node.js, “pip” for Python, etc. From there, it’s all just a matter of setting up API keys, which includes your payment intentions along with the amount, currency, form of payment, and email address to which the receipt will be sent. If you are successfully on one side with all the necessary steps, the details of the transaction will be returned to you.
From here, Stripe offers you a few different paths that you can use in the future and that you can use to build your e-commerce site in the future.
Each manual contains exactly the same amount of important information as the main tutorials needed for setup, covering the various code snippets and other important parts of Stripe Docs.
Configuring the Stripe Plug & Play
Were you interested in the previous part of this article? Completely understandable. Not all companies have access to professional developers. While Stripe itself is a developer-focused application by nature, there are other ways to use it on your payment processing journey without having in-house developers. Additional options are:
⦁ A developer hired from a Stripe partner under a contract.
⦁ Use a pre-built e-commerce solution that supports Stripe integration.
If you choose the second option, you will see many familiar names there. We use the WooCommerce plug-in for this. WooCommerce exists as both a WordPress theme and an integration that you can add to WordPress themes. First, make sure you also have the WooCommerc Stripe Payment Gateway plugin installed. Finally, once you get to the bottom of it, you’ll also find the settings you need here – WooCommerce -> Settings in the sidebar of your content management system. Next, click the “Checkout” tab and then find the “Stripe” link.
You will then see the Stripe options “Enable / Disable” and create custom fields for your shopping cart. You can now turn on test mode here from “Enable Test Mode” to test using the test credit card numbers provided by Stripe. To do this, you need a Test Secret Key and Test Publishable keys. If test mode is disabled for you, this plug-in will ask you for real-time versions instead.
From now on, there are some more “enable / disable” options to suit your own taste. Including automatically acquiring credit card information or authorizing it manually instead. Using the pre-created fields and data in Stripe Checkout, allow yourself to use “Apple Pay” and pay with saved cards, including languages. Please note that credit or debit card information is stored on Stripe and not on your server, which should be a convenience to you.
And that’s it! You now have the opportunity to start accepting e-commerce payments with Stripe. Although this type of setup does not require any programming, you need to have some knowledge of the content management system you are using in order to have an overview of how to navigate there. Fortunately, most and the most popular pre-created shopping carts are rich in instructional videos created for them, which should help you overcome greater difficulties.
Does Stripe also provide security for its users?
Stripe is just notorious for its security, taking it all very seriously. Stripe is a Level 1 Certified PCI Service Provider, which means it meets the industry’s most stringent security standards.
Stripe uses HTTPS for all its services that use TLS (SSL), even for their public website and desktop. In addition, for security reasons, all credit and debit card numbers are encrypted with decryption keys stored on separate devices.
It is only natural that no one is perfect and we are still human. Therefore, Stripe offers an incentive program to anyone who detects, takes the trouble to identify security-related errors, and then notifies the security team. Those who find larger flaws can expect at least $ 500 in compensation for it, and at least $ 100 for smaller vulnerabilities.
If you are still concerned about fraud, Stripe offers you an advanced error detection service called Radar. Radar is most likely an over-powerful service, but it uses machine learning to predict the likelihood of fraudulent transactions, given your company’s data and the information Stripe has about the card you’re using.
You can use standard fraud prevention tools such as the address verification service and CVV Checks.
Why is Stripe useful for multinational companies?
If you are considering using Stripe as the most cost-effective solution, this is the best option for you, as this is where you are interested in international transactions. Stripe advertises itself as the best payment service provider, which can be controversial at times, it is definitely one of the main contenders for this position.
Stripe is available in as many as 34 different countries. This means that it is available to merchants whose businesses are located in these countries, but it can hold over 135 different currencies. What’s even better is that if your own currency differs from the currency on your customer’s credit card, Stripe will convert it to your currency for a very minimal fee, based on daily average market exchange rates. You can avoid a currency conversion fee if you have interconnected bank accounts that use the same currency.
In addition, another good feature for multinational companies is that Stripe allows you to display product costs in a user-specific language. This means that even if your food sales company is physically located in Estonia, you can sell the products of this store for SEK in Sweden.
Finally, Stripe accepts a number of payment methods, making trading in foreign markets completely natural. Stripe uses even the rarest approaches to support local types of payments, in addition to the more common “universal” payments, which focus in particular on the types that are popular in the European Union and China.
The Stripe Payments API supports the following types of payments on which all markets in the world are based:
⦁ Apple Pay
⦁ Google Pay
⦁ Microsoft Pay
⦁ Amex Express Checkout
⦁ Masterpass by Mastercard
⦁ Visa Checkout
⦁ WeChat Pay
Here, however, you will see a diagram to get an idea of where and what you can use:
Businesses banned by Stripe: what can you sell there and what can’t?
Most payment services do not work in all industries, whether for security, legal or even moral reasons. Stripe is no different in this respect either. Because Stripe is a third-party processor, which means that it consolidates all its customers into a single merchant account, which also carries a slightly higher risk if each customer had their own personal merchant account. If you are in a problem area and are still required to accept card payments, you may want to consider requesting a merchant account with a company such as Payment Cloud instead.
Therefore, it is also quite clear that Stripe does not cooperate with companies that sell illegal products or services. All the more so, the Stripe restrictions are a little too vague: here you have the opportunity to pass on to your Stripe team to make an exception for you.
Financial and professional services
⦁ Investing and credit card services
⦁ Financial and legal services
⦁ Virtual currency
Infringements of intellectual property rights, regulated or illegal products and services
⦁ Everything about IP
⦁ Counterfeit products
⦁ Regulated products (tobacco, cannabis and similar products)
⦁ Adult content and services
Unfair, abusive or deceptive practices
⦁ Quick enrichment schemes
⦁ Paid removal sites
⦁ Services without added value
Products or services restricted by Stripe’s financial partners
⦁ Pooling of funds and facilitation of payments
⦁ Drug processing equipment
⦁ High risk companies
⦁ Multilevel marketing
⦁ Pseudo rabies
⦁ Social media activities
⦁ Substances designed to mimic illicit drugs
⦁ Video Game / Virtual World Credits
Nor are they interested in Stripe being used in a manner inconsistent with its intended purposes and inconsistent with Stripe’s service agreement.
Is Stripe the best choice for your business?
Stripe is best for companies that are involved in e-commerce, want the best sense of security and do business in foreign markets. If you are a programmer yourself or your team owns one, Stripe offers you the best development tools on the payment systems market.
That being said, you probably won’t need all the Stripe features most of the time. This is not the cheapest solution either. And, like all third-party processors, there is an increased risk of unexplained account holding and freezing.
If you like what the Stripe has to offer you, but you’re a little exhausted by its wide reach, check out Stripe’s alternatives. If Stripe doesn’t suit your industry, find the right payment gateway and credit card processor for you online.