Do you want to build an e-commerce or an internet business online? If yes, picking the right payment gateway provider to support your purchases/orders is crucial.
Payment Gateways are merchant services provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses. Payment solutions charge fees to offer gateways. Mostly, companies pay a portion of the aggregated sales and a per-transaction fee, although other pricing strategies exist.
There are a ton of payment service providers in the market and each with their own benefits and limitations. Let us take a look at two of the most popular options – Stripe and Braintree and try to conclude which is better for e-commerce and online payments.
It is essential to understand that advanced coding knowledge or developer assistance is required to set up and make the most out of the two payment providers. Stripe and Braintree are built on APIs that are compatible with programming languages such as PHP, Python, Ruby/Ruby on Rails, and Node.js. These APIs explained in detail on their API documentation. In the case of developing apps on various platforms, the payment platforms have APIs for iOS and Android to make it easier for cross-platform expansions. Both Stripe and Braintree will continually update their payment infrastructure as your business scales.
In case you would want to try out the gateways, both Braintree and Stripe offer sandbox accounts. Sandboxes allow you to get a feel for the payment experience before going live.
If you run an e-commerce store, chances are that you support multiple payment methods – not limited to the popular Visa/Mastercard/AmericanExpress(Amex). Braintree and Stripe accept payment methods like Discover, Maestro, JCB, Apple Pay, Android Pay, Pay with Google and Diner’s Club in addition to the traditional credit/debit cards.
If you’re targeting an e-commerce store in the Asian market, Stripe is your best bet. Stripe allows users to pay via AliPay and WeChat Pay. Stripe and Braintree payment gateways offer ACH (Automatic House Clearing) which are direct payments to your bank account.
Stripe also has its own payment method – Stripe Checkout. 1-tap-payments and bitcoin support are a few of its payment processing features.
There are no major differences between Braintree and Stripe pricing models. Both the payment platforms charge a fixed 30-cent fee and an additional fee of 2.9% for every e-wallet or credit card payments. Stripe and Braintree charge an extra 1% for international transactions. If currency conversion is required, an additional 1% fee will be levied on both platforms. Braintree supports transactions in over 135 currencies whereas stripe supports over 130 currencies.
With ACH debits, the charge is 0.75% for Braintree, 0.8% for Stripe. Both of them are capped at $5 for direct debits. While processing refunds, both Braintree and Stripe refund the entire transaction amount including the 30 cent charge. Bitcoin payments and direct debits above $625 incur a fee of $5. A flat $15 fee is assessed for each chargeback claim by both Braintree and Stripe.
For businesses with large payment volumes, both Stripe and Braintree offer customized pricing plans with volume discounts, Interchange pricing, Multi-product discounts, and Country-specific rates. However, the extent to which these monthly fee discounts/rate-deductions apply is not mentioned on their website.
Stripe integrates with over 300 third party tools in the areas of Accounting, analytics, ordering, CRM, POS, financing, forms, inventory management, invoicing, mobile app payments, notifications, transaction monitoring, relay, referral marketing, recurring subscriptions, user management, and shipping
Braintree’s third-party integrations are less when compared to Stripe, but it does integrate with over 50 apps covering major business needs like recurring billing, accounting, etc.
When it comes to billing analytics, both Braintree and Stripe integrate with tools like Baremetrics, ChartMogul, etc. Similarly, for accounting and invoicing, Stripe integrates with Freshbooks, and Braintree integrates with Elorus.
Stripe enjoys the advantage of integrating with popular Helpdesk and CRM tools like HappyFox, Salesforce, etc. Contextual payment information within the help desk can help supplement support agents for any order-related queries.
Owing to a sheer large number of native third-party integrations catering to different business needs, Stripe is a clear winner in this category. Whether Stripe or Braintree offers an advantage depends on which other integrations your organization is looking for.
Both Braintree and Stripe integrate with Zapier – allowing access data on many other 1000+ apps and services.
Stripe and Braintree are fully PCI compliant. Both tools provide modern security infrastructure to keep order and customer information safe and secure. Stripe has a separate product – Radar, which uses machine learning for fraud protection. Stripe and Braintree provide advanced security features like IP whitelisting, two-factor authentication and data encryption.
There is no clear winner in this battle. Both the providers offer similar fees, competitive feature sets, enhanced security and provide lots of support for developers for hassle-free setup. Irrespective of your choice, you can rest assured that your existing site infrastructure will likely work with either platform.
So where is the differential? Braintree offers free processing fee for up to $50,000 – This may come in handy if you’re a small business focusing primarily on domestic payments. If you’re looking at global expansions, especially in Asian markets, Stripe is preferred – owing to integrations with Alipay and WeChat. You must also look into the integrations list offered by Stripe and Braintree and check for the SaaS tools you already use in your organization like Shopify, ChartMogul, etc.
It is recommended to get a developer’s help to unlock the full potential of these payment gateways in the manner in which you would want them to function. At HappyFox, we use both Stripe and Braintree in our payment architecture and we couldn’t live without either of them!
In a nutshell, the decision should be based on your business requirements, the different payment methods your customers like, and the availability of payment platforms in the regions in which you would like to expand.