Shopify vs Stripe: Pick the right option for your business
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Shopify and Stripe are two popular too to help online business, but they serves diffrent purposes. Shopify is a full-pledged platform to build a online store front while Stripe is a payment processing service.
Shopify Payments is the default payment precessing service of Shopify. Therefore, Nexstsky will compare Shopify Payments and Stripe to see how they stack up against each other.
In this comparison, we’ll explore the strengths and differences of each to help you determine which one is the right fit for your e-commerce operations.
Shopify Payments vs Stripe: Which payment method is better?
Shopify is one of the best all-in-one e-commerce platforms and it comes with its own payment method called Shopify Payment. Shopify Payments is the default option if you use a Shopify store and you don’t have to pay transaction fees if you use it.
Stripe is one of the most popular online payment methods. You can use it for transactions not only on Shopify but on most websites on the internet. Stripe is used and trusted by millions of people for online transactions on the internet. Stripe actually powers Shopify Payments so both have quite similar features.
Choose Shopify Payments if:
- You want a seamless and fully integrated payment solution with your Shopify store.
- You prefer not to pay additional transaction fees on top of credit card processing fees on Shopify.
- You value simplicity and ease of setup, with no need for a separate merchant account.
- You want to manage all your payments and store data from a single dashboard within Shopify.
- You operate primarily in countries where Shopify Payments is supported.
Choose Stripe if:
- You need a versatile payment gateway that supports a wider range of currencies and countries, beyond those supported by Shopify Payments.
- You require advanced customization and flexibility in payment processing.
- You operate multiple online stores or non-Shopify platforms and need a consistent payment solution across all platforms.
- You value detailed reporting and extensive developer tools for customizing your payment workflow.
- You want to offer more diverse payment methods, including alternative payment options like Alipay and Bitcoin.
What is Shopify Payments?
Shopify Payments is Shopify's own payment service, which simplifies online transactions and payment acceptance for businesses. Powered by Stripe, a trusted name in online payments, Shopify Payments ensures security and reliability.
One standout feature of Shopify Payments is its seamless integration, requiring no additional fees beyond connecting your Stripe account. It supports multiple currencies, catering to customers worldwide.
Shopify Payments operates similarly to Stripe, PayPal, and Authorize.net. Once linked to your online store, it processes payments by verifying the payment method and communicating with the bank, all within seconds. Accepted payments are then deposited directly into your bank account.
What sets Shopify Payments apart is its merchant-focused approach, allowing buyers to use major credit cards such as Mastercard, American Express, Visa, and more, along with convenient options like Apple Pay and Google Pay.
With Shopify Payments, businesses can effortlessly accept online payments while enjoying cost savings on transaction fees.
What is Stripe?
Stripe is an online payment processing platform. Stripe is designed to handle all kinds of online transactions and it suits all business sites. Users can use their credit card or debit card to process transactions.
Stripe supports over 135 currencies and even accepts a variety of payment methods such as Apple Pay or WeChat Pay.
Integrating Stripe into different platforms is quite straightforward with its developer-friendly tools and APIs,
In addition, Stripe offers top-notch security so businesses and users have absolutely nothing to worry about when making online transactions. And should something happen, Stripe will handle your problem promptly and effectively.
Stripe is widely used for its flexibility, robust functionality, and ability to scale with growing businesses.
Shopify vs Stripe: Pricing And Fees
Shopify Payments |
Stripe |
|
Monthly Fees |
Shopify Basic - $25/month |
Standard - $0 |
Shopify - $65/month |
Customized - $2 per account for Stripe Express or Stripe Custom |
|
Shopify Advanced - $399/month |
||
Shopify Plus - $2,300/month |
||
Payment Processing Fees |
||
In-Person Transactions |
2.4%, 2.5%, or 2.6% + 10 cents for Advanced, Shopify, or Basic plan respectively |
2.7% + 5 cents |
Online Transactions |
2.5%, 2.7%, or 2.9% + 30 cents for Advanced, Shopify, or Basic plan respectively |
2.9% + 30 cents |
Manually Keyed Transactions |
3.4% + 30 cents |
|
International Transactions |
4.4% + 30 cents |
|
Additional Fees |
||
Currency Conversion |
1% cross-border fee on all sales made with a credit card issued in another country (for U.S.-based businesses) |
1% fee for currency conversion |
Chargeback Fee |
$15 |
$15 |
Other Fees |
2%, 1%, or 0.5% additional fee based on the plan if you don’t use Shopify Payments on Shopify |
Fees for Extra Services and Custom Solutions |
Shopify Payments vs Stripe: Detailed Comparison
Availability
Shopify Payments is available in 17 countries, including key markets like the US, Canada, UK, Australia, and several European countries, making it a strong option for businesses operating within these regions. It supports multiple currencies, but the range is more limited compared to Stripe.
Stripe boasts a broader availability, being accessible in over 45 countries, which makes it ideal for businesses with a global presence or those planning international expansion. It supports over 135 currencies, allowing businesses to accept payments from customers worldwide without currency conversion limitations. This versatility makes Stripe a robust choice for businesses looking for a highly adaptable and globally compatible payment processing solution.
Payout Time
The payout time of Shopify Payments and Stripe is roughly the same since Shopify Payment is powered by Stripe.
Shopify Payments will take around 2-3 days to return money to your bank account, depending on your location. Also, you need to take into account the processing time of your bank.
As for Stripe, your first payout will take around 7 to 14 days. Stripe uses this process to check the legitimacy of your business and the products your business is selling. If they think your business is involved in a high-risk industry, they might temporarily hold your money. Other than that, It is pretty much the same.
Chargeback
Both Shopify Payments and Stripe keep a record of your refunds and chargebacks. Every chargeback, on both Shopify Payments and Stripe, will cost you $15. This number can add up quite fast if your store has a high chargeback rate.
If your store has too many chargebacks, Shopify might even close down your Shopify store. This is why many dropshippers avoid using Shopify Payments since it is hard to deliver products in time in the dropshipping business.
As for Stripe, having many chargebacks might also get your Stripe account banned, but you will get to keep your Shopify store. And as long as your Shopify store is still there, you can always just choose another payment method.
Accepted payment methods
Payment methods |
Shopify Payments |
Stripe |
Credit and debit cards ( (Visa, Mastercard, American Express, Discover, etc) |
Yes |
Yes |
Digital wallets (Apple Pay, Google Pay, Amazon Pay,...) |
Yes |
Yes |
Local and international payment methods. |
Yes |
Yes |
ACH debit, ACH credit, and wire transfers. |
Yes |
|
Buy now, pay later methods |
Yes |
|
Manual payment methods |
Yes |
Implementation
Shopify Payments |
Stripe |
|
Ease of Setup |
Seamlessly integrated with Shopify store setup |
Requires separate setup and integration |
Integration Process |
One-click activation through Shopify dashboard |
Involves API integration and developer setup |
Customization |
Limited customization, follows Shopify's ecosystem |
Highly customizable through extensive APIs |
Time to Implement |
Quick and straightforward, minimal technical knowledge required |
May take longer, requires technical expertise |
Support and Resources |
Extensive documentation and 24/7 support via Shopify |
Comprehensive documentation, developer tools, and dedicated support |
Fraud filter
Shopify Payments offers integrated fraud detection tools designed to protect businesses from Shopify scams. These tools include automatic fraud analysis on every order, which assesses risk levels and flags potentially suspicious transactions.
The system analyzes various factors such as IP address, billing and shipping addresses, and order value to provide a risk score for each transaction.
Additionally, Shopify's built-in fraud analysis tools help merchants identify chargebacks and take necessary actions to mitigate them. While these features provide a solid level of protection, the customization options for fraud detection are somewhat limited compared to more specialized solutions.
Stripe excels in fraud protection with its advanced machine-learning tool called Radar. Radar leverages data from millions of global businesses to detect and prevent fraud in real-time.
It automatically learns and adapts to new fraud patterns, offering highly customizable settings that allow businesses to create specific rules tailored to their needs. Stripe's comprehensive approach includes real-time risk scoring, detailed insights, and the ability to review and manage suspicious transactions directly from the dashboard.
Additionally, Stripe offers premium features such as Chargeback Protection and Identity Verification for enhanced security. This sophisticated and flexible fraud detection system makes Stripe a robust choice for businesses seeking advanced fraud protection.
Conclusion
Choose Shopify Payments if you want seamless integration with your Shopify store, ease of use, and a straightforward setup. It's ideal for small to medium-sized businesses looking for a hassle-free payment solution.
Opt for Stripe if you need extensive global reach, advanced customization, and robust fraud protection. Stripe is perfect for businesses with technical expertise and those requiring a versatile and powerful payment processing solution.
Check out more Shopify comparison articles from Nextky: