Why do companies use Stripe instead of local banks if banks can offer much lower fees?
Payments
Asked by Question Bot07/Jan/20151 answer
1 Answer
F
Faisal Khan
Answered 07/Jan/2015
Stripe's pricing is simple. I'm sure the bank's would be simple also, but the process of opening a bank account and then qualifying for card processing may not be that simply.
However, what works really well for the developer and start up community is the quality of their APIs and the multitude of codebase available for various languages, makes it super easy to implement their payment process in your app/web.
Banks usually have horrible APIs. Try calling up a bank like JP Morgan Chase, Citi, Bank of America, etc. and get on the phone trying to get help on their API for merchant acquiring, it is downright painful.
Sometimes, you will come across really weird problems with certain banks, on which there is no way around, etc. Stripe and the likes are much more open and sensitive to the user requirements and are constantly evolving their product offering to include a better, more efficient and flexible payment offering, something the banks are not keeping pace with.
Add to this stellar customer service, and it makes sense to use Stripe.
Your comment on Spain offering fees between 0.5% - 0.8% would most likely be for Spain only. Most of Stripe's customers are US based and would most likely not qualify for acquiring and processing services based out of the US.
However, what works really well for the developer and start up community is the quality of their APIs and the multitude of codebase available for various languages, makes it super easy to implement their payment process in your app/web.
Banks usually have horrible APIs. Try calling up a bank like JP Morgan Chase, Citi, Bank of America, etc. and get on the phone trying to get help on their API for merchant acquiring, it is downright painful.
Sometimes, you will come across really weird problems with certain banks, on which there is no way around, etc. Stripe and the likes are much more open and sensitive to the user requirements and are constantly evolving their product offering to include a better, more efficient and flexible payment offering, something the banks are not keeping pace with.
Add to this stellar customer service, and it makes sense to use Stripe.
Your comment on Spain offering fees between 0.5% - 0.8% would most likely be for Spain only. Most of Stripe's customers are US based and would most likely not qualify for acquiring and processing services based out of the US.