Stripe vs Merchant Account: What's the Difference?

 Introduction

If you're looking to start accepting credit card payments, you might be wondering what the difference between Stripe and a merchant account is. The two terms are often used interchangeably, but they're actually two separate things that can both help your business accept credit card payments. In this blog post, we'll explain how Stripe differs from merchant accounts so that you can decide which one is right for you.

Stripe vs Payment Processing

Stripe is a payment processing platform. It provides the infrastructure to accept credit cards online, but it's not a merchant account. Stripe acts as a third-party processor, which means they work with banks and other financial institutions to process payments on your behalf.

Stripe charges 2-2.9% per swipe or click (depending on plan), plus $0.30 per successful charge and $0.50 per failed charge (only if you're using their gateway). There are no monthly fees associated with using Stripe; however, you will pay an initial setup fee of $5 for every new user and $1 for each additional API key request that needs access to your account information

Stripe vs Merchant Account

Stripe is a payment processing platform that allows you to accept credit cards online and in-person. It's not a traditional merchant account, but it can be used as one. Stripe is best suited for businesses that want to accept online payments or are looking for a way to streamline their current payment processes.



Stripe doesn't provide any of the following services:

  • Merchant accounts (also known as business banking) - These accounts allow businesses to accept debit and credit card payments, track sales activity, generate reports about their business performance, etc. They come with fees based on the amount of money you bring in each month through your customers' purchases (commonly referred to as interchange fees).

  • POS systems - Point-of-sale systems allow employees at physical locations like restaurants or retail stores to process transactions with customers using cash registers connected directly into their merchant accounts so they don't need access via computer/tablet/phone etc..

Stripe is a payment processing platform, while a merchant account is the type of account that allows you to accept payments. This can be confusing when the terms are used interchangeably.

Stripe is a payment processing platform. It allows you to accept payments with your own website or app, without having to worry about the technical details of processing payments. Stripe handles everything from taking the customer order to sending it through its own network and then back out again.

Merchant accounts are simply bank accounts that allow you to accept electronic payments over the internet, usually in real time (or "real-time").

Conclusion

As you can see, Stripe and merchant accounts are two different things with very different purposes. Stripe is a payment processing platform that allows you to accept payments online while a merchant account provides access to credit card processing services through an issuing bank. If you're looking for an easy way to accept credit cards online, then Stripe might be right for you! Read more about Stripe Vs Merchant Account

Location: United States

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