Stripe is one of the most established and the most significant providers in the massive world of online payments. When people use Stripe, they can accept debit cards, credit cards, and even ACH (automated clearing house) transactions from their website. For this purpose, they don’t need to cobble together a payments solution.
Stripe powers the dealings of the largest brands including, Pinterest, Blue Apron, Lyft, and Under Armour. This company claims that 89 per cent of every credit card gets processed on the network of Stripe at some point. Stripe has the capability to handle more than 135 currencies, and it turns into a standard solution for a company that does its business internationally.
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The Importance of Stripe Payments
If you want to understand the importance of Stripe Payments, you need to know how credit card processing works. Countless consumers believe that this process is straightforward and simple, as inserting or swiping their cards into the machine. At times, they also enter their information and number, which makes their payment go through. For a customer, it is the finishing of the transaction, but for sellers, it is just the starting.
To understand how a credit card transaction works, you must understand who is involved. A couple of distinct parties are involved in this process, although lines become blurred sometimes. The chief ones involved are:
- Customers – Customers include people who have credit cards or debit cards and try to purchase.
- Merchants – Merchants are businesses that customers try to buy services or goods. Every merchant is found with an exclusive merchant ID.
- Processors – A processor is commonly a large financial institution that becomes the backbone of every transaction. A few instances of processors comprise Chase Paymentech and Wells Fargo.
- Merchant acquirers – A merchant acquirer is a financial organization or institution that proposes the tools as well as processing that permit cards to get accepted. You will find merchant acquirers in a couple of kinds, processors and ISOs.