There are many payment options when it comes to using Shopify. Shopify payments is one of the most popular payment solutions, because it is the default and it has reasonable costs. However, that doesn’t mean that it’s always the best option for your brand when you want to accept credit card payments. Sometimes you might want to use a different provider, and another option is Stripe. In this article, we ask: does Stripe work with Shopify?

Key Takeaways
1
Setting up Stripe involves account creation, Shopify settings adjustment, and activation.
2
Stripe has lower fees and holds funds before depositing up to 90 days, affecting cash flow.
3
Testing the Stripe integration ensures a secure and efficient payment system.

What Is Stripe?

The Stripe payment gateway is a payment processing company that specializes in offering eCommerce companies a way to take payments through their website via credit and debit card. They have a similar system to processing payments to PayPal and therefore it is another way to accept payments on your website.

The process is simple, the customer makes a payment on your store and it is kept in ‘holding’ in your account for a set period time. After this, your funds are deposited into your bank account.

The transaction fees of Stripe are less than that of PayPal with fees as little as 1.2% from the very beginning, compared to the 3.4% of PayPal. However, the holding time of Stripe is much longer, it can be up to 90 days before you get the money, however it is often much shorter that this.

If you’re stuck with a 90 day waiting period, however, this can cause problems with your business’ cashflow.

How to Connect Stripe to Shopify

Stripe is a standard Shopify payment gateway. You don’t need to add an extension or an app to use it on your store. So the process to activate it is simple; just follow these instructions.

Step 1 - Login

Login to your Shopify account.

Step 2 - Payments

Click on the ‘Settings’ options and then the ‘Payments’ option.

Step 3 - Accept Credit Cards

Then find the option that says ‘Accept credit cards’ and then you can find the option that says ‘Stripe’.

Step 4 - Activate

Then you can click on the ‘Activate’ option.

Step 5 - Complete Account Setup

Then you can click on the ‘Complete Account Setup’ and then you can enter the various details and submit them. This will allow you create a Stripe account.