Stripe vs Paypal

Stripe vs PayPal: Payment Processing Solutions

Knowing the differences between Stripe vs PayPal is key to choosing the best payment processor. With many credit card processing services on the market today, finding the right one can be daunting. Each company operates in different countries, offers unique services, and sells various products made to work with their own devices.

There are several payment processing businesses to choose from. But for this article, we will match up two of the larger aggregate companies that do not offer high risk merchant accounts or ecommerce merchant account providers– Stripe vs PayPal.

Stripe vs PayPal: Card Payment Options

When a customer makes a credit card payment in-person, the transaction is very secure. In comparison, online credit card payments are more susceptible to fraud or other security issues. Because of this, the transaction fee is greater.

Card present transactions are a relatively secure form of payment to receive as a business. There is less risk involved in card-present transactions because the card owner is physically in attendance for the transaction, therefore eliminating inherent risks that otherwise would occur online.

Stripe Credit Card Processing

Stripe payment processing has proven to be a good choice for online merchants whose checkout experience is conducted on the internet. Especially those needing an ecommerce merchant account.

The company is based in Ireland but operates in over 25 different countries. Large businesses, startup companies, and private individuals can use their service to accept payments online via a digital shopping cart. Stripe has grown to be one of the larger players in the payment methods industry.

Stripe Payment Gateway

Reliable payment gateway integration is essential for any processing company. As mandated by the Payment Card Industry Security Standards Council, both Stripe and PayPal are PCI compliant.

Stripe Sigma: Business Insights

A unique quality to Stripe's business services is the integration of Stripe Sigma. This payment processing transaction data analysis tool allows businesses to find new opportunities and run their company more efficiently.

Some additional features to Stripe Sigma include:

• Location data to determine what impacts the most revenue
• Increased ease and accessibility to run payment reports directly
• Ability to identify which customers will stay with your company or leave during the year
• View the products or services that are most popular within a given month

PayPal Merchant Account

A PayPal merchant account is a robust payment processing solution for growing startup businesses, particularly those in need of a subscription merchant account. It allows your online customers to make secure and quick transactions through your website. This gives you the freedom to sell products with a trusted payment provider.

PayPal, founded in 1999, is a general ecommerce payment tool. Their platform is designed to cover a number of business needs, but still has a few limitations you should be aware of. According to the Terms and Conditions, there are certain high risk industries they will not allow on their platform.

PayPal Transaction Fees

When choosing to set up your merchant account through PayPal, make sure to consider if your company is considered high risk. Otherwise, PayPal can freeze your merchant account, and you may not have the ability to process payments on your website until you find another provider.

PayPal Pay in 4

This new feature of PayPal allows their customers to choose an alternative payment method in the form of installments. PayPal is available to divide your payment into four separate payments – one payment every two weeks. Pay in 4 is also provided at no additional cost and is interest free.

PayPal Crypto

Now, using the PayPal app, you can discover, buy, and sell different cryptocurrencies. PayPal Crypto is managed right in your PayPal Wallet and has the same protections as regular PayPal accounts.

Currently, PayPal Crypto is only available in the United States and is even limited in certain states. Cryptocurrency prices change every minute since the crypto financial market runs 24/7, 365 days a year. It's the only financial market that never sleeps.

You can purchase the following kinds of crypto coins through PayPal starting as low as $1:

• Bitcoin
• Litecoin
• Ethereum
• Bitcoin Cash

PayPal Merchant ID

A PayPal Merchant ID is the identification number of your account for your business. Much like a social security number for an individual, this number is the personal identity of your payment processing account for your company. It's essential for sharing fiscal growth metrics for tax statements or other financial entities.

PayPal Limitations

More than a bank, PayPal is a multi-purpose company that can help you grow your company over time. However, as your business scales, it's important to consider your options when it comes to lowering your costs.

As you start producing more sales volume, you'll have the ability to leverage your growth to reduce rates. Be sure to seek alternative payment providers who can lower your processing fees so you can save critical revenue in your growing business.

High Risk Merchant Solutions

Many business owners pursue their dreams of owning a successful company not being aware that there are many business types classified as high risk. And as a company that is classified as high risk, you must be aware of the hurdles, processes, and stipulations related to payment processing.

If you don't, you can get shut down by the acquiring bank. This is the last situation you want to be in as a high risk business. So how do you ensure that you keep processing payments and increase revenue?

Before covering the details of high risk credit card processing, it is important to understand what factors contribute to determining if a business is classified as one.

The factors below are indicators that your company may be high risk:

• The individual registering the business has a bad credit score
• Products and services sold are large ticket transactions
• There is a high amount of returns and chargebacks
• The bank considers your company having a reputational risk
• You use a recurring billing model for monthly and subscription-based sales
• Processing is for card-not-present transactions
• The merchant is in a highly-regulated industry

Do one or more of the above indicators describe your company? If so, it's likely your business falls into the high risk category. In this case, it is essential to find a payment processor other than Stripe and PayPal, like PayKings, who specialize in providing sustainable high risk merchant accounts.