The ultimate guide to Stripe and how to use it to process payments on your WordPress website

For any online business, whether they be a large corporation or a promising independent store, one of the biggest priorities is going to be the safety and security of your customers. This factor should be so crucial because if customers don’t feel comfortable shopping on your website, then they will just go somewhere else. There are many ways you can ensure the safety of your website for visitors. One of the biggest players is SSL certificates, but there are many other Website Security plans which can help too. All of this is vital, and if you already have it then great! However, your online store demands a bit more than the average website.

When checking out, your customers need to feel that the card credentials they are entering are going somewhere safe. Knowing that their data is encrypted can be a huge reassurance to some people. This is why offering your customers a safe and secure way to pay is so important. It can also be hard to identify what payment processing plugins are suitable for your website. This is where Stripe comes in – the self-proclaimed “Financial infrastructure for the internet”. In this blog post, we will take a look at what Stripe is, how it can be used for your website, and all the advantages it holds.

What is Stripe?

Stripe is an online payment processor and gateway that enables customers to securely make online payments for products and services. When customers are ready to make a purchase online, they can use it to submit their payment. It handles the payment processing, provides transaction status updates to the customer, and ensures smooth fund transfer to the business.

In addition to its core functionality, Stripe has forged integrations with well-known ecommerce website builders like WooCommerce and Elite. Moreover, it offers a comprehensive set of tools and APIs, empowering businesses to customize the integration of it’s capabilities into their websites. As a widely adopted payment processing system, Stripe serves businesses of all scales, ranging from renowned names like Atlassian and Lyft to small-scale eCommerce stores.

What are the benefits for my eCommerce store?

Okay: so you know what Stripe is. But why should you use it over any other payment processing extension out there? To answer this question, let’s explore the benefits Stripe offers for your eCommerce website.

Easily integrable with website builders and eCommerce websites

Stripe’s integrations with numerous popular eCommerce platforms and website builders provide significant benefits to small businesses. You can seamlessly incorporate the software into your website without any coding requirements. This streamlined setup not only saves time but also ensures reliable support and ongoing enhancements as the integrations evolve. One of the website builders which it is compatible with is Elite’s Website Builder.

User-friendly design

Stripe stands out for its exceptional user-friendliness, making it a popular choice among businesses of all sizes. From the intuitive user interface to the straightforward setup process, Stripe prioritizes simplicity and ease of use. The platform offers comprehensive documentation and developer tools that empower users to integrate it seamlessly into their websites or applications. Its user-friendly design extends to features like payment processing, subscription management, and fraud prevention, allowing businesses to efficiently manage transactions with minimal effort.

Infinitely customisable for developers

Although numerous pre-built Stripe apps and plugins are available, there might be instances where you need to customize it to align with your website’s unique requirements. Fortunately, it is renowned for its developer-friendly nature and flexibility for customization. With comprehensive documentation and resources, developers can easily tailor Stripe to meet specific needs and preferences, ensuring a seamless integration with your site.

Speedy and efficient payment process

The payment experience on your website significantly influences your conversion rates, as a smooth process enhances conversions, while a cumbersome or slow process may lead to abandoned purchases. Stripe offers a streamlined and user-friendly payment experience, increasing the likelihood of customers successfully completing their checkout process and boosting conversion rates.

What payment methods are accepted?

One of the reasons why it is so convenient for your customers is because it offers a wide variety of payment methods. By giving customers a range to choose from, you increase the amount of people who will shop with you. The payment methods Stripe accepts include:

• Major credit and debit cards (Such as Visa, Mastercard, American Express, Discover and more).
• ACH payments (Bank account transfers).
• Digital wallets and payment methods (Including Apple Pay, Google Pay and more).
• Buy now and pay later methods (Such as Klarna)

Stripe also works in-person as well as online. This is a great way to integrate your brick-and-mortar store to your online store (if you have both). By doing so, all the payments you accept will be accessible in one convenient location.

How does Stripe process payments?

One of the many advantages of Stripe is that is works as both the payment processor and payment gateway. This is great because it removes the need for another payment extension and unifies all of your payments. Here’s a quick look at how it works:

1. Customer gives payment credentials

Customers provide their credit card, debit card, or other payment details either on your online store’s checkout page or through a POS terminal (e.g., card reader) in a physical location.

2. Stripe securely sends the payment information to acquiring bank

After the customer submits their payment information, Stripe encrypts and securely transfers the sensitive details to the acquiring bank for transaction processing. It works with various acquiring banks, including Wells Fargo, eliminating the need for merchants to maintain a dedicated account with the acquiring bank. Instead, merchants can utilize it’s merchant account for these transactions.

3. The acquiring bank will connect to the issuing bank

Once the payment request reaches the acquirer, it establishes a connection with the issuing bank tied to the customer’s payment method. For instance, if the customer uses a Visa card issued by Citi, Citi acts as the issuing bank.

4. The payment is approved by the issuing bank and transfers the funds to the acquiring bank

If the customer’s funds are available, the issuing bank approves the payment, transfers the funds, and relays this information to the acquiring bank.

5. Stripe alerts the customer of a successful transaction

The acquiring bank informs Stripe of the successful transaction, and it promptly conveys this message to the customer (e.g., displaying an “Order successful!” message on the checkout page). From the customer’s perspective, this entire process takes just a few seconds.

6. Stripe delivers payments to your bank account

After the issuing bank provides its approval (usually on the same day), the team disburses the payment to your business bank account, deducting its processing fee. It may take a few days for the funds to reach your account, and some merchants opt for scheduled payouts that transfer payments regularly (e.g., weekly).

How can I get started?

Now you should have an understanding of how Stripe works, let us look at how you can use it as a merchant account on your eCommerce website.

A) Register for an account

To begin, sign up for an account by providing basic contact details, business information, and banking details. After verifying your account, you can proceed to step 2 or take time to configure additional settings like two-factor authentication.

B) Integrate Stripe to your eCommerce website

Integrating Stripe with your online store depends on your eCommerce platform. Luckily, it offers pre-built integrations for popular platforms like WooCommerce, Shopify, BigCommerce, and more. This allows you to easily start using Stripe on your store without developer assistance.

For custom sites not based on an eCommerce platform, a developer’s help is required to create a direct integration with Stripe. It provides comprehensive developer documentation to assist with custom builds.

C) Perform a test transaction

Before implementing Stripe for your customers, it’s recommended to conduct a test transaction to ensure smooth functionality. The specific steps may differ depending on your ecommerce platform. Typically, you can enable a test mode to verify if it can connect and communicate accurately without processing a live transaction. Alternatively, you can perform a live transaction and then issue a refund from your store dashboard.

This enables you to experience Stripe from a customer’s perspective and observe how the payments are displayed in your Dashboard.

D) Start selling!

Assuming your test transaction went smoothly, you can now disable any test modes and start using Stripe on your live website.

Is Stripe safe for my website?

Stripe ensures robust security and comprehensive fraud prevention measures, positioning it as a highly secure choice for accepting payments on your store. As a certified Level 1 PCI Service Provider, it strictly adheres to the rigorous security standards set by the PCI Security Standards Council. With Stripe, you can have peace of mind knowing that your customers’ payment information is handled securely.

To combat online fraud effectively, Stripe incorporates advanced fraud detection capabilities through its built-in Radar service. This proactive feature actively identifies and prevents fraudulent charges, safeguarding both your customers and your business. Furthermore, it supports additional features such as:

• Address Verification (AVS)
• Checking CVV codes
• 3D secure authentication

These features help to add an extra layer of fraud prevention to your payment processes, but it’s important to bear in mind that these could affect your transaction fees.

Is Stripe a good fit for my business?

Businesses all have differentiating factors that result in them having different needs. With this in mind, Stripe could be more suited towards some businesses more than others. It is ideal for small businesses that:

Use popular eCommerce platforms: Stripe is an excellent choice for businesses on WooCommerce and Shopify due to its seamless integrations. No need to invest time or resources in building and maintaining a connection with Stripe.

Have security and fraud worries: It is a top choice for security-conscious merchants due to its advanced fraud prevention and robust security measures. Avoid the costly impact on your business reputation and finances caused by fraudulent charges and bad actors.

Make international sales: You can use it in over 40 countries, so it is a great choice for businesses who sell internationally.

Appreciate customization: Stripe is incredibly developer-friendly, which makes it a great choice for businesses who want to utilize it’s possibilities to meet their store’s unique needs.

While Stripe has its advantages, it may not suit everyone. Some high-risk products are not eligible for sale through it (review their restricted businesses list for compatibility). Moreover, it imposes a notable transaction fee of per online transaction, making it potentially less cost-effective for certain businesses.

How does Stripe work with Elite?

If you are a customer of The Elite Web Co., you will be happy to find out that Stripe seemlessly integrates with Elite’s website builder and online store plans. It only takes a few clicks to convert and connect Stripe as your payment processor and gateway.