How does Stripe work for online payments? The ultimate website guide

November 20, 2023

Understand the benefits of Stripe for your business and how this e-commerce integration can swiftly facilitate customer transactions

It goes without saying that nowadays, for a website to perform really well, it must have some form of e-commerce offering. If there’s one thing we’ve learned from working with car dealers, it’s that a reserve online or full end-to-end functionality is key to a successful online business. But this process doesn’t just magically happen – integrations are the answer here – and good ones at that. 

As an agency specialising in automotive website design, we are always looking to build on our existing offering with platform developments that benefit our customers and their dealerships. As such, we have expanded on our existing e-commerce suite thanks to the implementation of a new Stripe integration. 

In this article, we discuss the benefits of Stripe, how this payment process works on a website, what payment methods are included, and how customers of 67 Degrees can reap the rewards. Read on to find out more…  

What is Stripe?

Stripe is a piece of software developed as a Payment Service Provider (PSP) system to enable simple and seamless online payments. It serves as a gateway for businesses to process website card transactions through a fully integrated suite of global payment-based products. 

Stripe’s clever software moves money around the world in a super safe manner so that customers are protected from potential fraud. Because of the financial infrastructure involved in keeping businesses and their customers safe, Stripe does charge a small fee per transaction – which we explain in more detail further into the article. 

Why do businesses use Stripe?

There are many reasons why businesses rely on Stripe to effectively and accurately process payments online – these include: 

  • Fast and simple setup – Stripe’s integration takes a matter of minutes to set up, allowing businesses to quickly start accepting online payments. There is no lengthy contract or underwriting processes for businesses to worry about.
  • Global payment structure – Stripe enables businesses to accept payments from customers all over the world with support for over 135 different currencies.
  • Flexible pricing – Stripe has no monthly sign-up fees and offers competitive transaction charges, so businesses only pay for what they use.
  • Optimised checkout process – The Stripe checkout service optimises conversion rates with a payment widget that works across all devices.
  • Fraud protection – Stripe uses AI machine learning to block fraudulent transactions and minimise chargebacks which is critical for online businesses where trust and safety are concerned. 
  • Brand customisation opportunities – The Stripe online checkout journey can be customised with a business logo, brand colors, and supporting images to match your website.
  • Recurring billing system – Stripe lets you create subscriptions and bill customers on a recurring schedule automatically.
  • Payment tracking data – Access detailed reporting on payments, customers and revenue directly within the Stripe dashboard.
  • Mobile friendly – Stripe is optimised to work seamlessly across mobile apps and mobile web browsers.

What are the benefits of Stripe payment processing?

Stripe really is a clever piece of software which is why we champion it as a gateway payment system to fulfil customer transactions across our dealers’ websites. Some of the key benefits include: 

Multiple payment methods

In addition to standard debit and credit cards, Stripe supports and accepts newer payment options like Apple Pay, Google Pay, Klarna, and paying via Alipay.

Built-in fraud protection

Stripe takes safety extremely seriously. It has developed advanced AI algorithms that monitor transactions which can detect fraudulent payments to minimise the risks to both customers and businesses. 

Global reach

No matter what your business ambitions are, Stripe works on a global scale by accepting payments from over 135 currencies across the globe – ideal if you trade internationally. 

Rapid payouts

Forget lengthy payment processes of 30-60 day payouts, Stripe sends funds to your linked bank account on a one to two-day rolling basis helping you to manage your finances more efficiently. 

Developer friendly

For web design agencies like ourselves, Stripe provides comprehensive API documentation to integrate online payments seamlessly – music to the ears of our in-house developers!

How much does Stripe charge per transaction UK?

Stripe’s pay-as-you-go setup means there are no monthly fees or hidden charges, which is good news for businesses. Instead, you’ll be charged accordingly to the payments you process via the website. At the time of writing this article, standard Stripe fees are priced at 1.5% + 20p for UK cards, or 2.5% + 20p for EU-based cards. For any company dealing in large payment volumes, there is a custom Stripe package available – more details can be found online via the Stripe pricing page on the website. 

How can Stripe payments benefit car dealerships in the UK?

As an agency working exclusively within the automotive industry, it’s important for us to highlight just how beneficial Stripe’s payment integration is for car dealership websites. As we’ve explained above, Stripe can make payment collection and processing much more convenient and secure for car dealerships, while providing a better customer experience overall.

Here are five ways in which Stripe can be an added benefit to your dealership: 

1 – Enables online car reservations

Consumers can reserve specific cars online and prepay a deposit using Stripe – without needing to visit the dealership first. This allows them to ‘hold’ a vehicle while arranging a test drive or closer inspection and in the meantime, the car is taken off-sale temporarily while a decision is made. 

2 – Streamlines purchase payments

Stripe makes it easy for websites to accept online credit card payments for vehicle purchases. This is a safe and secure way of processing transactions and means your dealership is able to trade remotely if the customer desires a contactless experience. 

3 – Payment plans can be set up

Although not applicable to every dealer, there is the option for businesses to use Stripe to create installment plans and recurring payments for the likes of vehicle financing. This is an ideal option if your dealership provides finance services in-house. 

4 – Allows customers to pay repair bills online

Similarly to the point above, Stripe can facilitate the online payment of servicing, repairs, and MOT invoices. Yet another perk if your dealership offers these services to customers. 

5 – Global payment acceptance

We know the world can be a small place when it comes to online purchasing, so why not be part of that with the ability to accept payments from international customers if desired? The Stripe setup will let you do just that. 

In this day and age, the ability to accept payments online and via mobile devices is especially beneficial and could make the difference between a customer purchasing a vehicle from your dealership, rather than a competitor’s. 

What payment methods can I use with Stripe?

Now you’ve got a much better understanding of Stripe and how it works, it’s important to understand exactly what payment methods are facilitated through the online service provider. You may be surprised at the variety:  

  • Credit and Debit Cards (Visa, Mastercard, American Express, Discover, JCB, and UnionPay cards can all be processed by Stripe)
  • Google Pay (credit and debit cards stored in Google accounts)
  • Apple Pay (available through iOS apps and websites) 
  • Klarna (spreading the cost via installments after purchase)
  • Mobile wallets (such as Google Wallet, GrabPay, WeChat Pay, and Paytm)

How do Stripe payments work on a website?

There are nine key steps when it comes to the Stripe payment process online – these are:

  1. A customer initiates the checkout process on your website and enters their payment information.
  2. Via an API (Application Programming Interface) your website passes the payment data to Stripe. 
  3. Stripe then validates the payment details, automatically triggering anti-fraud checks and (all being well) processes the transaction.
  4. At this point, Stripe sends back a payment token that represents the transaction to your website server – this removes the need for any sensitive card data to be returned. 
  5. Your website will then display a confirmation and receipt to the customer confirming the purchase completion.
  6. Still working in the background, Stripe sends the completed transaction to the customer’s card network (e.g. Visa, Mastercard). 
  7. Next, the card network immediately transfers funds to Stripe’s secure bank account – it’s at this point that Stripe will retain its small transaction fee.
  8. Following this, Stripe then deposits the remaining funds from the transaction into your authorised Stripe account.
  9. Job done! You can then log into your personalised Stripe dashboard to view transactions, issue refunds (if necessary), and manage payments accordingly.

Five of these steps are outlined in the image below, courtesy of Stripe:

How does Stripe benefit 67 Degrees customers? 

The Stripe payment gateway is used to accommodate customer transactions on our car dealer websites that offer a two-step reservation or full end-to-end e-commerce solutions. There are many fantastic benefits of this feature – including an upgrade to Apple Pay and Google Wallet direct payment options.

We have many more e-commerce plans in the pipeline which will continue to improve the way in which consumers experience our websites. In the meantime, if you have any questions at all about our Stripe integration, then please get in touch and we’ll be happy to help.    

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