Stripe pricing hikes - your guide.

Stripe card payment alternatives

Following the recent announcement that Stripe’s cost will increases we delve in to take a look at what this means for merchants and when to consider alternative payment solutions.

Stripe price increase

Stripe is a well-known PSP provider, often recommended by developers, with a cracking reputation for easy integration and cost-effective payment solutions for start-up merchants and SME’s. However, in April 2023 those costs are set to increase for UK and EU based merchants which will naturally have a knock-on effect on their bottom line. Here we take a look at how this plays out for your business and the alternative payment processing options for Stripe users.

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Stripe merchant accounts

Stripe offer out of the box facilities which cater for merchants selling online – they provide a fast set up process and have additional services which claim to increase revenue by 6.7%* when using the Stripe platform. This coupled with no set up fees and no monthly costs means that Stripe is an appealing payment processor for a lot of smaller companies. However, the cost per transaction is often higher than standard acquiring banks, despite them having additional fees to consider. So, how do you know when its time to leave Stripe for better pricing elsewhere?

(*taken from the Stripe website on 9th Feb 2023)

Stripe price hikes 2023

In February 2023 Stripe announced that they’d be increasing all of the percentage rates which are charged upon transaction. This varies depending on card type – but we’ll take a look at that in a moment. The worst hit being international processing costs in some cases increasing by over 1.5%. For merchants trading worldwide this can have a compound effect across all of their ongoing card payment costs, prompting most to shop around.

Comparing Stripe card processing fees

The pricing structure given to Stripe business owners encourages them to compare merchant accounts on one element alone – the headline rates. At Merchant Advice Service we always suggest comparing accounts on a pound for pound basis, meaning that if it’s finically beneficial to switch you can make an informed decision to do so. It’s important not to overlook elements such as payment methods, security, and PCI compliance in the meantime.

Merchants are encouraged to review their processing requirements and costs every 18-24 months. Using a non-biased, independent Broker to do so if needed.

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What do the Stripe cost increases mean to merchants

As of 1st April 2023 processing card payments with Stripe will increase in cost. Here we look at what that means for each card type;

DOMESTIC CARDS 1.4% to 1.5%

BUSINESS AND PREMIUM CARDS 1.4% to 1.9%

EU TRANSACTIONS 1.4% to 2.5%

NON-EU TRANSACTIONS 2.9% to 3.25%

For merchants processing over £3000 a month it could be worthwhile assessing your card processing costs elsewhere. In some circumstances for example it would be better to pay monthly fees and (A LOT) less per transaction. If you need a hand switching, speak to our non-biased experts today.

Switching merchant accounts from Stripe

So, once you’ve compared (on a pound for pound basis) your Stripe merchant account to alternative providers out there it’s important to understand what’s involved in the switching process.

You’ll be asked by the acquiring bank or your chosen broker to provide the following paperwork to accompany your application;

• ID
• Incorporation documents
• Proof of address and business location
• Transaction history
• Licencing (if applicable)

The above documents will help the underwriting team to approve your account application, before integration can begin.

Help switching Stripe merchant accounts

If you’re unsure of where to start when it comes to Stripe alternatives, our team of experts at Merchant Advice Service HQ are happy to assist. We provide free of charge, non-biased advice ensuring your card payment requirements are met for the lifetime of your business. Speak to us today.

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