Stripe is a payment processor that makes it easy for you to accept payments from customers. But there are certain fees associated with using Stripe. These fees vary depending on what type of account you want and how much money you want to send through your Stripe account each month, so it’s important that you know what these fees will be before signing up with them.
Stripe Merchant Account Fees
If we are talking about stripe merchant account fees, Stripe charges a one-time application fee of $500, which is non-refundable. This fee is charged for each new merchant account you open, even if you don’t end up using Stripe as your payment processor. You will be charged this fee even if you don’t end up using Stripe at all!
Monthly minimum charges
A monthly minimum charge is a fixed amount that you’ll be charged every month. It’s often used to cover the costs of running your business and ensuring you have enough money in the bank to pay your bills.
There are two types of Stripe merchant account fees: recurring and non-recurring fees. When it comes to recurring fees, they’re generally easier to estimate because they’re paid once per year or other specified period (for example, six months). So if you want some peace of mind knowing how much this will cost every year, we recommend looking at our annual plans instead!
Authorization fees
Authorization fees are charged when you authorize a transaction. When a customer attempts to buy something, such as an item from your website or app, and their credit card information is processed through Stripe’s servers. This process is known as authorization, because it authorizes the transaction.
You pay an authorization fee when accepting a customer’s credit card for the first time so that they can use it at checkout (or anywhere else where they want to make purchases). This means that once this happens, there won’t be any more charges on your account until it expires—which means all future transactions are free!
Discount rate
Discount rate is the amount that Stripe will discount from the total amount of a sale. The discount rate is not charged to the customer and it never affects your fees. It’s only deducted when your customer pays, so you can use this to get paid faster without affecting your overall profit margin.
The formula for calculating your discount rate is:
Discount Rate = Total AmountSold / PricePerUnit * 100%
Per transaction charges
Stripe charges a per-transaction fee. The fee is based on the size of the transaction, but it usually ranges between 1.4% and 2.9%.
It’s important to note that this charge can vary widely depending on how many transactions you have in your account and what type of card you’re using: if you have more than 5,000 monthly card activations (that’s when all of your customers use their cards), you’ll pay more than someone who only does one or two purchases each month; if someone likes shopping at Whole Foods, they may benefit from lower fees as well (because it tends to be higher volume).
Cross border fee
A cross-border fee is a charge levied by Stripe to process transactions in currencies other than the one you’re using. In most cases, this fee is based on the total amount charged for a sale and can range from 2% to 5%.
In order to avoid these charges, we recommend that you select your currency manually when setting up your account—you’ll be able to choose between USD and EURO (or any other supported currency).
Declined transaction fees
A declined transaction fee is a charge to your cardholder when they decline a transaction. The amount of this fee depends on the type of card and what you charged them. It’s usually between 2% and 3% of each sale, but it can go as high as 4%.
The reason these fees are so high is because banks want to make sure that their bank accounts are protected from fraudulent activity. If an account has been compromised through fraud, then having too much money in it could lead someone with malicious intent (i.e., hackers) to try and steal funds from your account without them knowing about it first—and that could cause problems for both parties involved!
Refunds and chargebacks
Withdrawing funds is a necessary part of running your business, but it can be uncomfortable if you’re not sure how to go about it. It’s important to understand that refunds and chargebacks are different things:
- A refund is when a customer disputes a transaction on their credit card statement. This can happen for many reasons, including fraud or because the customer doesn’t recognize the transaction as legitimate (for example, if they didn’t originally authorize it).
- A chargeback occurs when a merchant has been charged with fraudulent activity by one or more customers who dispute charges made by them through their bank accounts—for example, someone buys something from an online retailer and later decides that he never authorized any purchases made on his account during this time period.*
You should be aware of the fees that you’ll pay when you sign up with Stripe. Stripe’s fees are transparent and predictable, so it’s easy to understand what your costs will be before signing up.
- You can find out about the fees on their website at https://stripe.com/pricing or by calling them directly (1-888-447-4541). Their pricing is also displayed in their FAQs section which is located under Support > Pricing & Billing > Pricing Information.
- You can also ask them for a quote if they don’t seem clear enough about what they’re charging or if there’s something else that might be confusing about their billing process—for example: Are there any setup fees? How much does it cost me each month? What happens if I don’t pay my bill on time?
Conclusion
As you can see, there are a lot of fees associated with using Stripe. These fees may not seem like much at first, but they add up quickly if you want to make use of the features that Stripe offers. This is why it’s important for merchants who want to accept credit card payments online (or offline) to learn about all their options before making any decisions about which service provider would be best suited for them.
