Stripe Connect is an extremely popular platform for merchants, but what it costs can depend on what your specific needs are. This post will tell you what Stripe Connect is, why you might need it, and how much Stripe Connect costs for businesses with various needs. What is Stripe Connect? Stripe Connect is a payments […]
Stripe Connect is an extremely popular platform for merchants, but what it costs can depend on what your specific needs are. This post will tell you what Stripe Connect is, why you might need it, and how much Stripe Connect costs for businesses with various needs.
Stripe Connect is a payments platform for online marketplaces and services. Companies use it to allow users to accept payments from one another. For example, if I run an app and website called AntiqueConnect, which allows peer-to-peer sales of antiques, I can use Stripe Connect to enable buyers and sellers to transact on my platform with ACH payments and other payment types.
The cost of Stripe Connect depends on what your particular needs are. Stripe offers various pricing tiers that each include different levels of features. Let’s take a look at each subscription tier, what they include, and what they cost:
The “standard” account is the most common type, with features that are sufficient for most small to mid-size businesses. The standard package is designed for platforms allowing peer-to-peer transactions between individuals or small businesses. This type of account doesn’t allow full customization or support the need for more complex business types.
If you’re looking to onboard buyers and sellers quickly, and be able to scale up rapidly, Stripe Connect Express is your best option.
Stripe Custom allows you to completely customize your features and user experience, giving you the most amount of flexibility and leeway with regard to what features to offer.
For Stripe Connect Standard, all features are already included as part of your regular Stripe account that allows you to accept debit and credit card payments. To add payments for users to your platform, there are no additional fees required if you’re already a Stripe subscriber. Stripe automatically includes the Standard version of Stripe Connect with a fully-featured Stripe dashboard, international support, and all the necessary on-boarding and verification processes.
For Stripe Connect Express and Custom, however, there are some fees charged in addition to the typical Stripe subscription costs. First and foremost, there is a $2 fee that is charged monthly on top of your regular Stripe subscription. In addition, there is a 0.25% per-transaction fee. Again, this is in addition to the per-transaction fees within the existing Stripe fee structure.
If your account is connected for international payments, there are some additional fees you will incur. A cross-border fee will apply, and the amount will be based on the volume of transactions that are completed. For Stripe Connect Custom, enabling certain other features also triggers additional fees.
For example, to provide account debits and payouts for users of your platform, you have to enable an add-on feature that costs a little bit extra. The total cost of your service will depend on how many extra features you decide to subscribe to. For example, if you need to support certain payment methods, or provide a payment gateway for international users, you may pay more.
Regardless of which subscription tier you use, Stripe is a payment processor and merchant service provider that is known for an easy onboarding experience, an intuitive API with easy to use dropdown menus, and a variety of plugins (like the WooCommerce Stripe Plugin) to connect your account with other services and fully customize what you offer your users.
But the question of how much Stripe Connect costs depends on your individual needs. Overall the service is affordable, however the fees can add up if you need more than just what is included. Explore your company’s needs and evaluate your scaling plan, and you can easily determine which pricing tier is right for you so there are no surprises. Just remember to always read your services agreement carefully so that you know your subscription will cover everything you need.
In today’s business world, the point of sale (POS) system has become a key part of operations for retailers. The POS system is involved in several aspects of a business, such as inventory management, funds, and managing the inflow and outflow of products and services within a store. Due to its unique position in key […]
What Is Sales Tax Compliance Outsourcing? (SALT)Ever since the South Dakota v. Wayfair court ruling that you don’t need to have a presence in a state in order to be required to collect taxes on sales there, tax law has never quite been the same. If you need to collect taxes in many states and […]
Knowing how to properly collect sales taxes in different states and jurisdictions is incredibly complicated. Different tax jurisdictions have different laws and rates, but accountants and tax lawyers are expensive. Worse yet, a tax mistake due to ignorance of sales tax law can lead to an audit or penalty that will cost your business a […]
Chargebacks are debit or credit card charges that have been disputed by customers. Sometimes these come in the form of chargeback fraud, but other times they are legitimate. When a chargeback happens, you have to deal with the acquiring bank and other entities in order to dispute it. Regardless of the reason for any given […]