Let's face it - in today's world, if you're running a business, you need to be able to take payments online. It doesn't matter if you're selling homemade candles from your garage or running a tech startup with dreams of going global. The ability to accept money over the internet isn't just nice to have anymore - it's essential.
That's where Stripe comes in. If you've been in the e-commerce game for a while, you've probably heard of it. If you're new, you're in for a treat.
Why Stripe? In a sea of payment processors, what makes this particular platform stand out? For starters, Stripe's user-friendly interface and robust API have made it the go-to choice for businesses of all sizes, from scrappy startups to Fortune 500 companies. Its flexibility allows for seamless integration with a multitude of platforms and services, while its stringent security measures ensure that both you and your customers can transact with peace of mind.
More than that, Stripe is an entire ecosystem designed to help your business grow. From detailed analytics that help you understand your cash flow to tools that combat fraud, Stripe offers a comprehensive suite of services that go beyond simple transactions.
In this guide, we'll walk you through the process of opening a Stripe account. We'll navigate the setup process, and equip you with the knowledge to leverage Stripe's powerful features.
Stripe's global reach: is your country supported?
Before you start working with Stripe, check if your country is supported by this platform. Currently, it operates in 46 countries, including the United States, Canada, the United Kingdom, Australia, and several European nations.
If you work in multiple countries or have different business lines that require distinct financial management, you might need multiple Stripe accounts. Each country may require a separate account due to local regulations and compliance requirements. For example, if you have a retail operation in both the U.S. and the U.K., you’ll likely need individual accounts for each country to adhere to their respective laws and regulations.
And if your country is not on Stripe’s list, you might consider establishing a business entity in a supported location. This could be beneficial not only for creating a Stripe account but also for gaining access to other financial and operational advantages in that region.
One effective way to establish a business entity in the United States is through Stripe Atlas. This service allows entrepreneurs from around the globe to incorporate a company in the U.S., specifically in Delaware, without needing to travel there. By using Stripe Atlas, businesses can create a U.S.-based legal entity, obtain a bank account with Silicon Valley Bank, and receive a tax ID number. This setup enables them to create a Stripe account, facilitating payment processing from customers worldwide.
Setting up Stripe Connect for marketplace owners
Stripe Connect helps online marketplaces and apps handle payments between buyers and sellers. It's like a payment system that does all the hard work for you.
With this tool, you can:
- Accept payments from around the world
- Split money between different people
- Pay sellers in their local currency
- Track all transactions in one place
Enabling Stripe Connect is essential for marketplace owners aiming to provide an easy and reliable payment experience. Follow our detailed guide to set up Stripe Connect and enhance your marketplace’s functionality.
Step 1: Navigate to Stripe Connect settings
You've got three ways to get there:
1. The Side Menu Route:
- Look at the left side menu
- Find and click on "More"
- Then select "Connect"
2. The Top Bar Shortcut:
- Spot the gear icon in the top bar? Click it!
- Go to "Settings"
- Look for "Discover more features"
3. The Payments Menu:
- In the Payments menu, find and select "Connect"
- Then click on "Create a platform or marketplace"
Step 2: Choose your funds flow
- Stripe will show you different options for fund circulation
- Take your time here - this decision is important for your marketplace's financial structure. Generally, marketplaces tend to choose the second option (Buyers will purchase from you), while the first option (Sellers will collect payments directly) is more suitable for single-vendor stores
Step 3: Review payment and refund details
- Carefully read through all the details about payment returns and refunds
- You'll need to confirm that you've read and understood these details
- Once you're comfortable with everything, go ahead and move to the next step
Step 4: Select the seller payout method
- Stripe will present you with options for seller payouts
- Choose the method that best fits your marketplace model
Pro tip: When sellers register on your marketplace, they'll need to create a Stripe account to receive payouts. We'll cover that process in more detail later!
Step 5: Choose seller finance management
- Stripe offers different options for seller finance management
- For the fastest, most seamless experience, choose the first option
This uses native Stripe code, which means smoother operations for you and your sellers
Step 6: Final check and confirmation
- Review all the settings you've chosen
- Double-check that everything looks correct
- If it all looks good, click that "Continue" button!
And there you have it! You've successfully set up Stripe Connect for your marketplace.
Creating a Stripe account for sellers
If you're a seller looking to use Stripe for payment processing, you need to understand that you can only create a connected account after registering on a marketplace that integrates with Stripe. The account creation process is guided by the marketplace developers, ensuring a tailored experience specific to their platform.
In this section, we’ll provide step-by-step instructions for Stripe Connect Custom accounts on how to navigate this procedure effectively and get started with your connected Stripe account. Please note that this guide is relevant only for creating a seller's account on the Sharetribe marketplace.
Step 1: Set Up Your Payout Details
1.1. Choose your account type
- Individual: If you're a freelancer or sole proprietor, choose this option.
- Company: For businesses registered as LLCs, corporations, or other entities.
1.2. Select your country
1.3. Enter your bank account information
- Routing number: A unique code that identifies your bank.
- Bank account number: The number for your specific bank account where funds will be deposited.
Step 2: Fill out your contact information
- Mobile number: Enter your mobile phone number. Stripe will send a verification code to this number to make sure it's valid.
- Email address: Provide an email address. This will be used for important account notifications and communications from Stripe.
Step 3: Verify your personal details
- Legal name: Enter your full legal name exactly as it appears on official documents like your ID or passport.
- Date of birth: Add your date of birth, which Stripe will use for identity verification purposes.
- Home address: Enter your residential address. Make sure it matches the address on your identification documents to avoid any issues.
- Last four digits of your Social Security Number (SSN): For individuals in the U.S., you'll need to provide the last four digits of your SSN for further verification.
Step 4: Provide additional information
Depending on whether you're registering as an individual or a business, Stripe may ask for extra details like:
- Business type: Sole proprietorship, LLC, or corporation.
- Business registration information: If you're registering a company, you'll need to provide this.
- Description of business activities: Briefly describe what your business does.
- Estimated monthly revenue: Give an estimate of how much you expect to earn monthly.
Step 5: Review and confirm your details
- Review your information: Go over all the information you've entered to make sure everything is accurate. Check your personal details, bank information, and any other additional info you provided.
- Confirm your account setup: Once you’ve reviewed everything, confirm your account setup. You might also need to agree to Stripe's terms of service and privacy policy.
- Submit your application: After confirming, submit your application. Stripe will review your details and may take a few minutes to verify your account.
Additional considerations
Requirements to open a Stripe account include some other aspects. If you plan to accept payments in multiple currencies, be aware that multi-currency support must be configured separately. In some cases, marketplaces operate with a single currency, meaning payments to both customers and providers will be handled in that currency. Ensure that your business adheres to local laws regarding online payments, taxation, and data protection. Staying compliant with regulations like GDPR or PCI-DSS is essential to protect your customers' data and avoid potential legal issues.
Need a helping hand? Roobykon's got your back!
Setting up a Stripe account, thinking about international sales, following all the rules... it can feel like a lot to handle. But here's some good news: you don't have to do it all on your own! Roobykon, a technology company specializing in software development and integration services, has partnered with Stripe to offer clients seamless access to Stripe's powerful payment processing tools.
Ready to get started? Reach out to Roobykon and take the first step towards hassle-free online payments!
