Let’s get into it. Simply put, merchant accounts let companies accept credit card payments. Stripe also enables businesses to accept credit card payments. So, what is the difference between Stripe and a merchant account?
Abbreviated Explanation
A merchant account is in a sense a business banking account. It allows a business to accept credit card payments electronically. What is the difference between Stripe and a merchant account? Stripe is known as an online solution that allows businesses to accept credit card payments devoid of a specific kind of bank account. Whereas a merchant account relies on a payment gateway and a processor. Stripe simulates a merchant account, payment processor, and gateway rolled into one.
What are Gateways and Processors?
Gateways are the interface that not only accepts payments but encrypts them, and they’re the card swipes you use as a consumer at checkout time. So they’re the technology behind payment acceptance throughout the checkout process on websites.
What is the difference between Stripe and a merchant account? A merchant account is a bank account explicitly established for business reasons, where companies can make and accept payments.
Therefore payment processors are the businesses that carry out the transaction between the gateway and the bank account. Transaction processing is regularly a service – a bank provides.
There are many reasons why the stripe payment gateway is the best option for businesses
Here are just a few of the advantages:
- Stripe is one of the most popular and well-trusted payment gateways available. This means that your customers are likely to already have stripe accounts, making it easy for them to make purchases from you.
- Stripe is very easy to use, both for businesses and customers. Setting up an account and adding stripes as a payment method to your website or app is simple.
- Stripe has low transaction fees, which can save you a lot of money compared to other payment gateways. For example, stripe charges a flat fee of 2.9% + $0.30 per transaction, while PayPal charges a variable fee of 2.9% – 4.4% + $0.30 per transaction.
- Stripe is available in many countries around the world, so you can accept payments from customers anywhere.
- Stripe also offers several features that can be helpful for businesses, such as fraud detection and customer support.
Overall, the stripe is an excellent choice for businesses of all sizes who want to accept credit card payments online or via mobile apps. If you are looking for a reliable and easy-to-use payment gateway, Stripe should be at the top of your list.
E-commerce & Merchant Accounts
E-commerce merchant accounts give online sellers the capacity to accept debit and credit card payments. Alternate payment approaches are often included as a speedy way to expand sales with no extra work. Therefore research has shown the more ways customers can purchase from you, the more sales you receive. What is the difference between Stripe and a merchant account? Basically, in the US, adding ACH or checks to the checkout page boosts Ecommerce merchants’ orders up to 35%, depending on the product & service sold. Research also shows for international Ecommerce merchants, adding similar “in-country” payment methods can boost sales by up to 42%.
What is Encompassed in an E-commerce Merchant Account?
An E-commerce merchant account in most instances has two parts. First, the merchant account created with the acquiring bank (similar to 5 Star Processing), gives you the capability to take debit & credit cards and other payment methods. What is the difference between Stripe and a merchant account? So the next part is the secure Ecommerce payment gateway, through which online payments are tendered to the banking networks for approval.
5 Star Processing E-commerce merchant accounts include the following:
- Accept All Major Card Brands. Effortlessly take Ecommerce payments from buyers utilizing debit or credit cards.
- A complete Payment Gateway. Enhanced technology ensures the ultimate security for Ecommerce payments. All transactions are SSL encrypted with military-grade security ensuring data privacy and safeguarding sensitive card information from data breaches.
- Virtual Terminals. Securely accept mail, fax & mail orders (better known as MOTO). Unrestricted virtual terminals are usually included as a typical feature on all accounts.
- Fraud Combat Weapons. Vast and substantial fraud filters help you promptly approve good orders and decline fraudulent ones. Tailored fraud protection features to meet the needs of your business.
- Exceptional Customer Service. Highly skilled customer service representatives committed to your satisfaction. Get the support you need when you need it. So hearty and robust Cloud Reporting. Access reports in any format.
- Modify to meet your needs. A personalized portal.
Conclusion: What is the difference between Stripe and a merchant account?
Need a merchant service for your E-commerce business? Contact 5 Star Processing.
