As an online business owner, you have a lot of different options to choose from when it comes to processing payments. You can use a traditional merchant account and gateway, you can use PayPal, or you can use a service like Stripe.
So, which one is the best for your business? The answer may surprise you.
Let’s take a closer look at each of these options:
Merchant accounts and gateways: This is the most traditional way to process payments, and it’s also the most expensive. You’ll need to set up a merchant account with a bank, and then you’ll need to sign up for a gateway service like Authorize.net or WorldPay. The fees for these services are typically around 2.9% + $0.30 per transaction, which can add up quickly.
PayPal: PayPal is a popular option for small businesses because it’s easy to set up and there are no monthly fees. You’ll pay 2.30 per transaction, which is comparable to what you’d pay with a merchant account and gateway. The downside of PayPal is that some customers don’t like having to create a PayPal account to pay for their purchase.
Stripe: Stripe is a newer option that’s becoming popular with small businesses because it has low fees and is easy to use.30 per transaction, which is the same as PayPal. The big advantage of Stripe over PayPal is that customers don’t need to create an account to pay – they can just enter their credit card information and be done.
So, which one should you use?
If you’re looking for the cheapest option, then merchant accounts and gateways are the way to go. However, if you’re looking for convenience and ease of use, then Stripe is the better option. And if you’re looking for something in between, then PayPal is a good choice.
Can I Use Stripe Instead of Shopify Payments?
The answer may surprise you – using Stripe instead of Shopify Payments could save you money!
While Shopify Payments does have its advantages – like being integrated with your Shopify store – it also has some drawbacks.
First of all, Shopify Payments charges 2% + $0.30 per transaction, which is higher than both Stripe (2.30) and PayPal (2.30).
Second, with Shopify Payments, your customers will have to create a Shopify account in order to make a purchase.
With Stripe, on the other hand, customers can simply enter their credit card information and be done – no need to create an account.
Conclusion:
So yes – using Stripe instead of Shopify Payments could save you money! If you’re looking for convenience and ease of use, then Stripe is the better option.
