Payments. Ecommerce. Profits.

Can Stripe hold your money

Can Stripe Hold Your Money?

Stripe is a payment processing company that allows businesses to accept payments from their customers using credit cards or bank accounts. Stripe has raised $1.5 billion in funding since its founding in 2011.

Stripe was founded in 2011 by brothers John and Patrick Collison. They wanted to create a simple way for companies to accept payments without having to build out their own infrastructure.

Stripe is now one of the largest providers of ecommerce services in the US. The company offers a range of features such as fraud protection, PCI compliance, and API integration.

It also provides tools for marketing and analytics.

What Is Stripe? 

Stripe started as an open source project in 2011. The founders, John and Patrick Collison, were working at Google when they decided to start building this new service.

This idea eventually grew into a full-fledged startup called Stripe.

The goal of Stripe is to make it easy for developers to add commerce capabilities to their apps. By providing APIs (application programming interfaces) and other tools, Stripe makes it easier for people to use online banking and mobile wallets.

The first version of the software was released in 2012. Since then, Stripe has expanded to offer more than just payments.

Today, the company offers a suite of products including a subscription management tool, a customer support app, and a marketplace for small business owners.

How Does Stripe Work? 

When you sign up with Stripe, you’re given access to a dashboard where you can manage all of your transactions.

You can view your balance, see how much money you have left on each card, and even update your billing information.

When someone purchases something through your site, Stripe takes care of the transaction details. First, it creates a token that represents the amount owed.

Then, it sends the token to your server so that you can process the charge. Finally, it returns the token back to the customer.

Stripe charges a fee per transaction based on your plan level. For example, if you choose the “Standard” plan, you will pay 2.9% + 30¢ per successful transaction.

If you go over your monthly limit, you will be charged 3.4% + 30¢ for every dollar above your limit.

You don’t need to worry about setting up any additional hardware or software. All you need is a web browser.

Why Use Stripe? 

There are many reasons why you should consider using Stripe instead of another provider. Here are some of the most common:


With Stripe, you only pay fees for what you actually use. There are no hidden costs.


Your data is encrypted during transmission. Plus, there are multiple layers of security built into the system.

Fraud Protection 

When someone uses your website to purchase a product, Stripe automatically reviews the transaction. If there is any suspicious activity, Stripe stops the transaction immediately.

Customer Support 

When you run into problems with your account, Stripe has a team ready to help. They provide 24/7 phone support and email support.

API Integration 

Stripe integrates seamlessly with popular platforms like Shopify, Magento, WooCommerce, and others.

What Are Some Alternatives To Stripe? 

While Stripe is one of the best options available, you may want to explore alternatives. Here are some of them:


Braintree provides similar services to Stripe. It also supports integration with popular ecommerce platforms. However, it does not integrate as well with third-party applications.


While Stripe is focused on payments, PayPal is a leader in digital goods. This means they handle subscriptions and other types of recurring revenue.


Square works similarly to Stripe. In fact, it was founded by two former employees from Stripe. But unlike Stripe, Square doesn’t focus solely on payments.

Instead, it offers tools for businesses to accept credit cards, take online surveys, and sell physical items.

Google Wallet 

Google recently announced their own payment platform called Google Pay. Like Stripe, this service allows customers to make purchases without sharing sensitive financial information.

Amazon Payments 

Amazon launched its own payment solution called Amazon Payments. It works much like Stripe but focuses more heavily on mobile apps than websites.


Authorize.net is an industry leader when it comes to processing transactions. Their API is easy to set up, and they have excellent customer support.

Can Stripe Hold Your Money? 

Yes! In fact, Stripe holds your funds until you make a payment. Once you receive the funds from your customers, you can deposit them into your bank account.

Is Stripe Safe? 

Absolutely! Stripe is an industry leader when it comes to online security. The company encrypts all of your sensitive data before sending it to their servers.

And because they do not store your credit card numbers, they cannot be used by hackers.

How Do I Set Up My Account?

Setting up an account with Stripe is easy. Just visit stripe.com and click the “Signup” button in the top right corner. Follow the instructions on screen, and you will be set up in minutes.

How Much Does Stripe Charge?

The price varies depending on your plan level. You will pay between 0.25% and 2.9% plus 30¢ per successful transaction (depending on your plan).

If you exceed your monthly limit, you’ll be charged 3.4 percent plus 30¢ for every dollar over your limit.

Can I Get A Refund From Stripe?

No. Stripe does not offer refunds. If you have questions about your refund policy, please contact customer service.

Can I Use Stripe With Other Payment Gateways?

Stripe integrates with many payment gateways including PayPal, Dwolla, Google Checkout, Amazon Payments, etc.

What Is The Best Way To Manage Customers On My Website?

Stripe offers several ways to manage your customers. For example, you can create a Customer Record or Subscription Record.

These records allow you to track your customers across various websites. Or, if you prefer, you can use the API to automate processes.

How Can I Integrate Stripe With My Ecommerce Platform?

Stripe supports most major ecommerce platforms. Their API allows developers to easily integrate Stripe into their own apps. Visit stripe.com/developers to learn more.

Do I Have To Accept Credit Cards To Use Stripe?

You don’t need to accept credit cards to use Stripe. But if you choose to accept credit cards, you must comply with the PCI DSS standard.

Does Stripe Offer Any Discounts?

For new merchants, Stripe offers a free trial. After that, there are no discounts. But if you sign up today, you can save 10%.

How Long Will It Take To Receive Funds From My Customers?

Once you receive the funds from a customer, you should see them appear in your balance within 24 hours.

Final Thoughts

Stripe is one of the best options available for accepting payments online. They provide a simple interface, great support, and competitive pricing.

Plus, they’re backed by some of the best technology companies in the world. So whether you want to start accepting payments online or grow your business, Stripe is worth checking out.

There is a ton of helpful information in in our merchant processing knowledge center to learn more. 

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