Stripe vs Shopify Payments: Which to Use?

Published on: June 5 2023 by pipiads

Hey there guys, my name is Marcus and in this video, I'm going to compare Stripe with Shopify. The first thing I'm going to share with you is my actual recommendation for you to use. Then, I'm going to compare the fee structure of Stripe and also Shopify, and then I will talk about additional features they offer. So let's start now.

Recommendation:

Personally, if you can use Shopify Payments, use Shopify Payments. It's going to be much more effective than choosing a different payment processor. But what I would do if I were you, okay, I would let you use Shopify Payments but then have a Stripe or PayPal or something in backup. Why? Because what can happen, let's say that you have a summer collection and you're going to sell a new product in summer, and you are earning right now 2k a month. What can happen is that let's say that you're going to jump to 30-40k a month, but right then, Shopify is going to stop. They are going to review your store if you're not a scam or something, right? They're not going to allow you to sell products. It can happen, but then you need to figure it out fast another payment processor. And what will happen is that you are going to wait to get verified on, I don't know, Stripe for a while, like one week, and you are going to lose a lot of revenue. This is why I always recommend if you're going to choose one payment processor, have some that you're not going to use straight away in backup that you can use anytime. This is what I would definitely recommend for you to do and have it as a backup, and from year two-three years from now when you're going to be big, you will remember what I said to you, and you will be so thankful because just this one minute is going to save you so much money.

Fee Structure:

Now let's go further to just payment and fee structure. In Shopify, you have to pay for the basic account like okay, but let's say you can't use Shopify Payments. But it's really important that if you're going to choose a different payment processor than Shopify Payments, you have to pay in a basic Shopify 2 percent, in the normal Shopify 1 percent, and advanced Shopify 0.5 based on a plan that you're going to choose. And then why is it important? Only because let's say that you would choose Stripe. In Stripe, you're going to see that okay, integrate 0.4 percent, 0.25 cents or 2.9 percent, right? And to those, let's say that I'm going to order from India, let's say I'm going to pay 2.2-2.9 percent to Stripe and also I'm going to pay another 2.1 or 0.5 to Shopify. So that's like free. This is like what, five percent, on a basic Shopify, and two percent goes to Shopify, and 0.3 percent goes to Stripe. So this is really important, and when you compare the online credit card rates, the Shopify Payments is 2.9-2.6 and 2.4. Here it's 0.4 percent for European card. So if you can have a lot of orders from Europe and you know that you are targeted in Germany or the UK or I don't know, Sweden, whatever, I would definitely go with Stripe. You're going to save actually money. So let's say that even here, it's 2.6 percent, but let's say you're going to see additional fees here for 0 percent, I would choose advanced Shopify account for $79, and then I'm going to pay one percent to Shopify. Then I'm going to get from European cards 1.4 percent. I'm like 2.4-2.4 percent. The cents are really similar, so still, it's better comparing to Shopify Payments. So you always need to do those kinds of shenanigans and calculations like which one is actually better.

Additional Features:

Now to go further, the one huge advantage I personally see there are more of them to Stripe comparing to Shopify Payments are these. So you got 135 currencies in Stripe. You got it available in more countries comparing to Shopify Payments. That's another thing. Two business days is really similar. The payment, then you're going to have like integration. There are plenty of them both. Customer support is good, but one really thing I like about, let me show you, about Stripe is 3D secure. Pretty secure that C3 is a method used to verify customer identity before an online car purchase. This is really important. So if you're going to get a lot of orders from scam people, etc., using Stripe is really effective and really good. So that's what I would definitely recommend for you to do and buy this. You're going to save also money. Adaptive acceptance. So they are going to help you 0.08 local payment methods. SEPA direct, and that's pretty much it. So I don't know what else should I share with you.

If you can use Shopify Payments, use it. But always have a backup payment processor like Stripe or PayPal in case Shopify stops your selling. When it comes to fees, Shopify Payments is better for US customers, but Stripe is cheaper for European customers. Stripe also offers more currency options and is available in more countries. Stripe has better security features like 3D secure, making it more effective for preventing fraud. Consider your business needs and target market when choosing between Shopify Payments and Stripe.

Table of Contents About Stripe vs Shopify Payments: Which to Use?

Shopify Payment Gateways: SHOP PAY vs STRIPE vs PAYPAL
How To Setup SHOPIFY Payments (Simple Method)
How to use Stripe & Shopify payments for NON USA Citizens/Residents
Is Shopify Payments right for you? || Shopify Help Center
How To Avoid Stripe and Shopify Payment Holds When Drop Shipping
Stripe vs Shopify Payments - Best Payment Processor? (2023)

Shopify Payment Gateways: SHOP PAY vs STRIPE vs PAYPAL

In this video, Tauren discusses the different payment processors available on Shopify, including Shopify Payments, Stripe, and PayPal. He highlights the importance of transaction fees and the relevance of the country of sale and payment types. Tauren provides a detailed analysis of each payment processor, including their pros and cons.

Payment Processors:

1. Shopify Payments

- Shopify Payments is a competitive offering in the market and makes it easy to integrate payment systems with Shopify stores.

- Shopify Payments uses Stripe to process credit card payments.

- The transaction fees for Shopify Payments are 2.9% + 30 cents per transaction for the basic plan and 2.7% for the advanced plan.

- Chargebacks cost $15 regardless of Shopify or Stripe.

2. Stripe

- Stripe is a payment processor that transfers to many different types of businesses and applications.

- Stripe accepts over 135 different currencies and is available in 35 different countries.

- The transaction fees for Stripe are the same as the basic Shopify plan.

- Stripe is a good option if you want to customize your payment solution or Shopify isn't available in your country.

3. PayPal

- PayPal is a trusted payment processor and is a good option to offer on your website.

- PayPal does not charge for disputes, giving you time to resolve them before they escalate.

Tauren recommends Shopify Payments for those who want an all-in-one solution and Stripe for those who want to customize their payment solution or Shopify isn't available in their country. He also recommends offering PayPal on your website for its trusted reputation and dispute policies.

How To Setup SHOPIFY Payments (Simple Method)

In this Shopify tutorial video, Dean guides us through the process of setting up Shopify payments on our Shopify Drop Shipping Store. Having a reliable payment system is crucial for any e-commerce business, as it allows customers to make purchases with ease and confidence. Dean explains the different payment options that Shopify provides, including PayPal, Amazon Pay, and Shopify Payments, which is linked to stripe. He suggests that offering a variety of payment options can increase sales by appealing to different customer preferences. Setting up Shopify Payments involves providing information about your business and proving ownership, and providing your banking information so that funds can be deposited directly into your bank account. Dean recommends setting up both Shopify Payments and PayPal to offer customers the most diverse payment options possible. If you have any questions or difficulties with setting up payments, Dean encourages viewers to leave comments on the video.

How to use Stripe & Shopify payments for NON USA Citizens/Residents

In this video, the speaker talks about how non-US citizens and non-US residents can start selling on Shopify with Shopify payments and/or Stripe without having to come to the US. The speaker discusses the limitations non-US residents face when it comes to payment options and provides three different options for them to set up a US-based company and bank account to start selling on Shopify.

Options for Non-US Residents to Sell on Shopify:

1. Stripe Atlas: Stripe offers a program called Stripe Atlas that allows non-US residents to apply and get approved to set up an LLC in the US on Delaware. Stripe Atlas also creates a bank account with one of their partners for the applicant, eliminating the need to come to the US. This option costs about $600.

2. Buffalo Registered Agents LLC: This website sets up a US-based LLC for non-US residents, without the need to be physically present in the US. The website takes care of all the paperwork, sets up a bank account, and gives the applicant complete access to the account. This option also costs around $600.

3. Payoneer: Payoneer offers an online bank account that non-US residents can use to get approved to sell on Shopify payments and/or Stripe. However, the routing number that Payoneer gives initially may not be approved by Shopify payments, and the applicant may have to call Payoneer to get a new routing number.

Non-US residents face restrictions when it comes to payment options on Shopify, but the three options mentioned in this video provide them with a way to set up a US-based company and bank account without having to physically come to the US. These options allow non-US residents to accept credit cards and expand their business, rather than being limited to only PayPal as a payment option.

Is Shopify Payments right for you? || Shopify Help Center

Are you wondering how to accept credit cards on your Shopify store? Look no further than Shopify Payments! In this article, we'll take a closer look at this payment service and see if it's right for your business. We'll cover what payment methods are accepted, eligibility requirements, fees, and alternatives to consider.

Payment Methods Accepted:

Shopify Payments allows customers to make purchases using credit cards, Apple Pay, Google Pay, and Shop Pay directly on your store. Depending on your location, there may be additional payment methods available, such as Visa and Mastercard. American Express and Discover are also accepted in the US, while iDeal is accepted in the Netherlands.

Eligibility Requirements:

Shopify Payments is available in 17 locations and can be used by numerous types of businesses and services. To find out if it's available in your country and if your business type is supported, check the Shopify Payments Terms of Service. If your country or business type is not supported, you can consider alternative payment methods.

Bank Account Requirements:

Each region has local requirements that your bank must follow, such as using the correct currency and accepting electronic bank transfers. To confirm that your account meets these requirements, contact your bank directly.

Fees:

Transaction fees are charged any time a payment is processed, while credit card fees are charged for any credit card sale. Shopify Payments charges credit card fees that vary based on your subscription plan. Lower rates are available by upgrading your plan. There are no transaction fees for stores located in most countries, but local non-credit card payment methods may have associated fees.

Alternatives:

If Shopify Payments is not available or not the right fit for your business, consider other payment providers listed by Shopify. Make sure to read the terms of service for each provider to find out about eligibility, fees, and usage.

Choosing the best payment service for your business is an important decision. Shopify Payments is a simple and straightforward option for accepting credit cards on your Shopify store, but there are also alternatives to consider. Take the time to research and find the best option for your business. For more information, visit help.shopify.com.

How To Avoid Stripe and Shopify Payment Holds When Drop Shipping

How to Avoid Payment Holds and Pay Less Fees on Shopify

- Scaling your Shopify store can be difficult when payments are put on hold by Shopify and Stripe.

- Payment holds prevent you from fulfilling orders and paying for ads, making it difficult to run a successful business.

- The solution is to find a good payment processor that will help you avoid payment holds and pay lower fees.

Why Shopify and Stripe Hold Your Payments:

- Shopify and Stripe tend to hold payments once you start seeing success and getting traction.

- They claim this is to pay for chargebacks, but often hold your money for no reason.

- They are not familiar with the dropshipping business model, which makes them more likely to hold your money.

Benefits of a Good Payment Processor:

- A good payment processor will answer all your questions about payment processing and offer lower fees than Shopify and Stripe.

- They charge true cost fees and do not hold your money, which is essential for scaling your business.

- They are familiar with ecommerce and know how to help you in every step of the way.

- To take your Shopify store to the next level, you need a good payment processor that can help you avoid payment holds and pay less fees.

- Fill out the questionnaire in the description to find a good payment processor that fits your needs.

- Follow Bogan Koslov on Instagram for more tips on running a successful Shopify store.

Stripe vs Shopify Payments - Best Payment Processor? (2023)

Stripe vs. Shopify Payments: Which One is the Best Payment Processor?

Are you planning to build an online store on Shopify and wondering about the payment processors? In this quick comparison, we will discuss the differences between Shopify Payments and Stripe and which one is the best payment processor.

Comparison:

1. Availability:

- Stripe is a third-party solution built for many e-commerce platforms to take the work out of billing.

- Shopify Payments provides its own payment solution, which means if you don't use Shopify, Shopify Payments isn't an available option anyway.

- If you don't use Shopify, you will use Stripe, which is the biggest pro for Stripe and the biggest con for Shopify Payments.

2. Currencies and Countries:

- Stripe is available in 135 plus countries and 85 currencies, while Shopify Payments is available in 17 countries and 4500 apps.

- Stripe has much better features than Shopify Payments because it has more currencies, which is essential for worldwide transactions.

3. Payout Time:

- Both Stripe and Shopify Payments have a similar average payout time of two business days for US-based businesses and can vary with customized payout schedules.

4. Integration:

- Shopify Payments has over 4,000 apps available to integrate with the Shopify platform, but not all apps will be compatible with Shopify Payments.

- Stripe has over 450 integration options available, and all 150 integrations are working well.

5. Fees:

- Shopify charges a big rate, and they may shut down your whole Shopify store, which is a big con.

- Stripe can ban your Stripe account only, and you can create another Stripe account or create a PayPal account or any other account.

6. Customer Support:

- Stripe has better customer support than Shopify, making it easier for users to solve their issues.

In conclusion, Stripe is the winner of this debate because it has more currencies, is available in more countries, has good integration options, better customer support, and only bans your Stripe account. Comment down below and let us know which one you think is the winner.