Stripe basics for business owners

What Stripe is, how it works, what you can do with it, and whether it is the right payment processor for your business.

Stripe is one of the most widely used payment processors in the world. If you are building or running an online store, there is a good chance your developer has mentioned it. This guide explains what Stripe is and what it means for your day-to-day business.

Quick summary

Stripe is an all-in-one payment processor that lets your website accept credit cards, debit cards, and digital wallets. It handles everything from the checkout form to the payout to your bank. On Stripe's standard pricing there is no setup fee and no monthly fee — you pay a percentage plus a small fixed amount on each successful transaction.

What Stripe does

Stripe sits between your website and your customer's bank. When a customer checks out, Stripe:

Securely collects the card details
Sends the payment for authorization through the card network (Visa, Mastercard, etc.) to the customer's bank
Holds the funds until they settle into your Stripe balance
Pays you out to your bank account, minus its fee

How much of this your customer sees depends on how checkout is built. Stripe offers a payment form embedded in your own pages, so the customer never leaves your site, as well as a full Stripe-hosted checkout page they are redirected to. Both look and feel professional; we will tell you which one your site uses.

What you can do with Stripe

Beyond basic card processing, Stripe supports:

One-time payments — standard checkout for products and services
Recurring billing — subscriptions charged automatically on a schedule
Invoicing — send a payment link by email with a professional invoice
Digital wallets — Apple Pay, Google Pay, and more
Buy now, pay later — installment payment options (availability varies)
International currencies — accept payments from customers around the world
Saved cards — customers can store a card for faster repeat checkout

The Stripe dashboard

Once Stripe is connected to your site, you get access to the Stripe Dashboard — a website at dashboard.stripe.com. From there you can:

See all recent payments and their status
Issue refunds
Track your upcoming payouts
Download reports and tax documents
Manage customer subscriptions (if you have recurring billing)
View and respond to disputes

You do not need to log in regularly, but it is useful to know it is there, especially when you want to issue a refund or check on a payment.

Stripe fees

Stripe charges a fee on each successful transaction. On standard pricing there is no setup fee and no monthly fee. See Stripe payouts & fees explained for the current rate and a full breakdown, or stripe.com/pricing for Stripe's own figures.

Fees are deducted automatically

Stripe does not invoice you for fees. It takes them out of each payment as it settles, so the amount that arrives in your bank is already net of fees.

How payouts work

Money from a card payment sits in your Stripe balance as pending until it settles, which in the US takes about two business days. Once it is available, Stripe sends it to your linked bank account on your account's payout schedule. Where Stripe supports it, that schedule defaults to daily, and you can change it to weekly, monthly or manual.

See Stripe payouts & fees explained for more detail on payout timing and how to read your payout history.

Is Stripe right for you?

Stripe is a strong choice for most online businesses. It works particularly well if:

You are running an online store (WooCommerce, Webflow, Squarespace Commerce, etc.)
You want a clean, on-site checkout experience
You need recurring billing or subscriptions
You sell internationally

Stripe may not be the best fit if:

Your customers strongly prefer PayPal (consider adding both)
Your business type is restricted by Stripe (check their Prohibited and Restricted Businesses list)
Stripe is not yet available in your country (check Stripe global availability)

Giving Chykalophia access to your Stripe account

If Chykalophia is setting up or maintaining your payment integration, we will need access to your Stripe account. See Give us access to your Stripe account for instructions.

Common questions

Does Stripe hold my money?

Only briefly. Funds sit in your pending balance while the payment settles, which is about two business days in the US for card payments. Stripe may also set up a reserve on your account, which holds back some funds to cover expected refunds and disputes until the reserve period ends. Your first payout takes longer than later ones: Stripe says it typically schedules that one to complete within 7 to 14 days of your first live payment.

Do my customers need a Stripe account?

No. Your customers enter their card details at checkout. They do not need to sign up for anything. Only you (the business owner) need a Stripe account.

Can I use Stripe if I also sell in person?

Yes. Stripe Terminal lets businesses accept in-person payments with a card reader, and you manage in-person and online payments together in the same Dashboard.

Is Stripe available outside the US?

Stripe is available in many countries. Visit stripe.com/global for the current list. Rates differ by country, so check the pricing page for your country rather than assuming the US rate applies.

A valid email address, your business details and your bank account information for payouts. For a US account, Stripe says it verifies your legal entity name, legal entity type (such as Sole Proprietor or LLC), EIN, SSN (or ITIN), and business address. See What we need to set up Stripe for the full checklist.

Need a hand?

If you're stuck, email support@chykalophia.com and we'll help. Include your website address and a screenshot if you can.