What Stripe Does

Stripe is a payment processor that lets businesses accept credit cards, debit cards, and other payment methods online. When a customer enters their card information on your website or app, Stripe securely handles that data, checks with the customer's bank, and transfers the money to your business account. You do not store the card details yourself — Stripe does that part.

Stripe sits between you and the customer's bank. The customer pays through Stripe, Stripe confirms the payment is real, and then Stripe deposits the funds into your business bank account, usually within one to two business days. Stripe charges a fee for this service, typically a percentage of each transaction plus a small flat fee.

Stripe is used by businesses of all sizes: freelancers taking one-off payments, online stores processing hundreds of orders daily, and subscription services charging customers monthly. You can use Stripe on a website, through a mobile app, or even in person with a card reader.

Key Takeaways

  • Stripe processes card payments and deposits the money into your business bank account, usually within one to two business days.
  • You set up a Stripe account, add your business and bank details, and then embed Stripe's payment form into your website or app.
  • Stripe charges a fee per transaction — the rate depends on your business type and the payment method, but typically ranges from 2% to 3% plus a flat fee.
  • Stripe handles the security and compliance work, so your business does not have to store or manage raw card data.
  • You can use Stripe for one-time purchases, subscriptions, invoices, or in-person payments depending on which Stripe product you choose.

Setting Up Your Stripe Account

Start by going to stripe.com and clicking the sign-up button. You will enter your email, create a password, and choose your country. Stripe will then ask for your business name, your role (owner, manager, developer), and what you plan to use Stripe for — selling online, taking subscriptions, invoicing, or something else.

Next, Stripe asks for your business address, tax ID, and the bank account where you want deposits to land. This is where Stripe will send your customer payments. You will also provide personal identification — Stripe needs to verify who is running the account. This step can take a few minutes to a few hours depending on how much information Stripe needs to confirm.

Once your account is live, you can start taking payments. If you have a website, you will add Stripe's code to your checkout page. If you do not have a website yet, Stripe offers a straightforward payment link tool — you create a link, share it with customers, and they pay through that link. Stripe also sells a card reader for in-person payments if you need that.

How Stripe Charges You

Stripe's fees vary by what you are selling and how the payment happens. For online card payments, Stripe typically charges 2.9% of the transaction plus 30 cents. So if a customer pays you $100, Stripe takes $3.20 and you receive $96.80. If you use Stripe's card reader for in-person payments, the rate is usually 2.7% plus 5 cents per transaction.

International payments cost more. If a customer in another country pays you, Stripe adds 1% to the standard rate. ACH bank transfers (moving money directly from a customer's bank account) cost 0.8% with a minimum of 5 cents and a maximum of $5 per transaction.

Some Stripe products have additional costs. If you use Stripe Invoicing to send bills to customers, there is no extra fee — you only pay the standard transaction fee when they pay. If you use Stripe Radar to detect fraudulent transactions, that is included at no extra cost. But if you need a custom integration or dedicated support, Stripe offers paid plans starting at $1,000 per month.

Payment Methods Stripe Accepts

Stripe accepts Visa, Mastercard, American Express, and Discover cards. It also accepts Diners Club and JCB in some countries. Beyond cards, Stripe handles digital wallets like Apple Pay and Google Pay, which let customers pay with a single tap on their phone.

In some regions, Stripe also processes local payment methods. In Europe, Stripe accepts SEPA bank transfers and iDEAL (a Dutch payment system). In Asia, Stripe works with Alipay and WeChat Pay. In Latin America, Stripe handles local bank transfers and cash payments through partners. The available methods depend on your customer's country and your business location.

You can choose which payment methods to offer. If you only want to accept cards, you can turn off digital wallets and bank transfers. Most businesses accept everything Stripe offers because it removes friction — customers pay with whatever method they prefer.

Security and Compliance

Stripe is PCI DSS Level 1 compliant, which is the highest security standard for handling card data. This means Stripe has passed rigorous audits and meets strict rules about how card information is stored and transmitted. When you use Stripe, you do not have to worry about storing card numbers yourself — Stripe does that in encrypted, find servers.

Stripe also uses tokenization, which means the card data is replaced with a unique token that only Stripe can decode. Your website or app never sees the actual card number. This protects both you and your customers because even if someone hacks your website, they cannot steal card data.

Stripe monitors transactions for fraud automatically through Stripe Radar. If a payment looks suspicious — for example, someone trying to charge $10,000 to a card that usually buys $20 items — Stripe can flag it or block it. You can set your own fraud rules or let Stripe's machine learning handle it.

Stripe Products for Different Needs

Stripe Payments is the core product for accepting one-time payments on a website or app. You add a payment form, the customer enters their card, and the money lands in your account.

Stripe Billing handles subscriptions and recurring charges. If you run a membership site, SaaS product, or any service that charges monthly, Stripe Billing automates the invoicing, payment collection, and renewal. It can also handle free trials and proration (adjusting charges if a customer upgrades mid-cycle).

Stripe Connect is for marketplaces and platforms. If you run a site where multiple sellers offer products or services, Stripe Connect lets you take a cut of each transaction and automatically pay out the seller. Stripe handles the complexity of splitting payments and managing separate accounts.

Stripe Invoicing lets you send bills to customers and collect payment through a link. The customer receives an invoice, clicks to pay, and Stripe processes it. You can set payment terms, send reminders, and track which invoices are paid.

When Money Arrives in Your Account

Stripe deposits funds into your business bank account on a rolling basis. Most payouts happen within one to two business days after a payment is processed. So if a customer pays on Monday, the money typically arrives in your bank account by Wednesday.

Stripe holds a small reserve for the first 30 days of your account — usually 5% to 10% of your transaction volume. This protects Stripe in case of chargebacks or refunds. After 30 days, Stripe releases the reserve and you have full access to all your money.

You can change your payout schedule in your Stripe dashboard. By default, payouts happen automatically every day, but you can switch to weekly or monthly if you prefer. You can also pause payouts temporarily if you need to.

Frequently Asked Questions

What happens if a customer disputes a charge?

If a customer tells their bank the charge was unauthorized or the product did not arrive, that is called a chargeback. Stripe notifies you and holds the disputed amount. You can respond with proof — a shipping confirmation, email receipt, or other evidence that the transaction was legitimate. If you win the dispute, the money stays with you. If you lose, Stripe returns it to the customer and charges you a chargeback fee (usually $15).

Can I use Stripe if I am outside the United States?

Yes. Stripe operates in over 40 countries and supports businesses in most regions. You will need a business bank account in your country and a tax ID. Some countries have restrictions — for example, Stripe does not serve certain high-risk industries in some regions. Check Stripe's website to see if your country and business type are supported.

Do I need a website to use Stripe?

No. Stripe offers payment links that you can share via email, text, or social media. Customers click the link and pay without needing to visit your website. You can also use Stripe's invoicing tool to send bills directly. For in-person payments, you can use Stripe's card reader with just a phone or tablet.

What if I want to refund a customer?

You can refund a payment through your Stripe dashboard. Click the transaction, select Refund, and choose the amount. Full refunds take one to two business days to appear in the customer's account. Partial refunds work the same way. Stripe does not charge you a fee to issue a refund, but you do not get back the transaction fee you originally paid.

Is there a monthly fee to use Stripe?

No. Stripe has no monthly subscription or account fee. You only pay when you process a transaction. If you do not take any payments in a month, you owe Stripe nothing. This makes Stripe affordable for new businesses or seasonal sellers who may have months with no sales.