Category: Accounting

Understanding Stripe’s Credit Card Processing Fees

Customers expect they can pay for goods and services beyond just paying with cash. Debit card and credit card transactions are increasingly common, as are digital wallets, which allow consumers to make contactless payments by holding their smartphone to an NFC-enabled payment terminal. But to extend these payment options to your customers, you need to partner with a payment processor.

Stripe is one such processor. In fact, it’s our pick as the best processor for online businesses. It offers competitive rates and relatively few fees compared to other leading payment processors.

This guide will help you understand Stripe’s pricing and the fees you can expect to pay when partnering with the company.


Editor’s note: Looking for the right credit card processor for your business? Fill out the below questionnaire below to have our vendor partners contact you about your needs. 

Stripe has chargeback fees, like most other credit card processors. If a customer disputes a charge and requests a payment reversal, Stripe charges you $15. However, if the dispute is settled in your favor, Stripe will reimburse the entirety of the fee. Most credit card processors do not reimburse chargeback fees in the event of a payment dispute. Moreover, if you issue a refund to a customer, Stripe does not charge a refund fee, but you will not be reimbursed for the initial transaction cost of the refunded payment.

How much does Stripe cost per month?

Stripe charges different rates and per-transaction fees depending on the transaction being conducted and how the customer is paying for those goods and services.

Here’s a closer look at Stripe’s rates and fees:

  • Domestic debit card and credit card payments: When you accept domestic debit cards or credit cards, regardless of the brand, you will pay a 2.9% rate plus 30 cents for each

What Should a Good Credit Application Include?

If you’re providing a service such as marketing or technology, a credit application might not seem like an obvious need. But anytime you perform work for a client before you’re paid, you are in fact loaning the client money. Before you loan your clients money, make sure they fill out a credit application. 

A credit application has three main purposes:

  • To evaluate your customer’s creditworthiness.
  • To establish terms with your customer.
  • To provide protection in case your customer defaults on the agreement.

You don’t want your credit application to be too lengthy, especially if you are also going to have a contract, but to be effective your credit application needs to have certain key elements.

Information to evaluate your customer

To evaluate your customer, you need some basic information. This should also include information you might need if the customer becomes delinquent. For example, instead of only collecting the contact information for accounts payable, also collect contact information for the owner or senior management, depending on the size of the company. The more phone numbers, cell numbers and email addresses you have, the better.

The most basic information to collect is the name, address and phone number for the company and any parent companies. You will also want references and bank information. Performing a basic check of any information given can prevent you from doing business with a fraudulent company. You would be surprised at the number of companies who do business without first confirming even the most basic information.

Establishing terms with your customer

It may be obvious, but all too often I’ve seen clients who did not have any written terms of agreement with their customers. Without something in writing a customer can claim that the salesperson told them they could wait and pay until a certain


What Small Business Need to Know About Accounting

Most small business owners aren’t accountants by trade. But whether their background is in product development, HR, management, or anything else, they have to learn the nuts and bolts of accounting.

The good news is that small business accounting is relatively simple. Companies that operate in a single state and have a simple business structure have three accounting priorities: ensure their revenues exceed expenses, keep their books clean and pay their taxes. Still, small business accounting can be tricky for leaders without any sort of financial background. Use these tips to make sure you’re on the right path:

1. Keep business and personal accounts separate

One of the messiest accounting blunders small business leaders can make is to mix their business and personal funds. Although plenty of entrepreneurs chip in their own startup money, business revenue and expenses must be kept separate from personal ones. 

The best solution is to start with a sound structure. Establish your company as a distinct legal entity, such as an S Corp or LLC. Open a business checking account as your financial hub, and pay yourself a salary from it each month. Get a business credit card for expenses you can’t, or don’t, want to pay cash for, and open a business savings account as a rainy day or investment fund. Track any usage of personal items for business reasons.

2. Classify workers properly

When it comes time to build a team, you have two choices: employees or contractors. The IRS considers employees as those who you have behavioral authority and financial control over, as well as a long-term relationship with. Contractors, meanwhile, are people who work for your company on a per-project basis and retain control over their own schedules and business decisions.

Beware that the penalties for misclassifying workers are


How to Pick a Charity Your Business Should Support

It is remarkably important for brands to give back to the community, including by donating some of their time and other resources toward helping worthy causes. However, not all charities and nonprofits are worth your time: Some lack transparency, while others may have management issues or other potential problems.

So how can companies decide who best to support? To find out more, we asked a panel of Young Entrepreneur Council members what qualities business leaders should look for in a charitable or nonprofit organization. These answers are provided by Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most successful young entrepreneurs. 

1. Transparency

I think it’s important that nonprofits are transparent with their donors and the general public. If you want people to trust and support you, you have to give people a reason to see that you’re trustworthy. Once a charity is viewed as unethical, it’s hard to recover from that title. – Syed Balkhi, WPBeginner

2. Great results and accomplishments

Before I’m willing to invest in a charity, I want to know what they have accomplished in the past. Are they known for helping out in disastrous situations, or do they only show up when things are at ease and they want donations? – Blair Williams, MemberPress

3. How the charity uses donations

Actually seeing or knowing how the charity uses their donation is important to many people. With some charities, they lay out exactly what your donation is going to be used for, while with others it’s a little vague. Decide if knowing exactly how your donation is going to help is important to you when choosing a charity to support. – Stephanie Wells, Formidable Forms

4. An informative website

Does their website detail where the proceeds go and who gets


Accepting Credit Card Payments on a Mobile Phone

The ability to accept credit cards and debit cards at the point of sale (POS) is a must for small businesses today. In an increasingly cashless society, customers expect to pay for goods and services with their cards. An in-store ATM doesn’t cut it; customers want quick and easy payment options.

Unfortunately, investing in a credit card terminal or POS system can be expensive. For some small businesses, these systems might be overkill. Luckily, there are payment processors that allow you to accept credit card payments using your phone. All you need is a mobile application and a credit card reader.


Editor’s note: Looking for the right credit card processor for your business? Fill out the below questionnaire below to have our vendor partners contact you about your needs.



Can I take credit card payments on my phone?

You can accept credit card payments on your phone by partnering with a payment processor that offers mobile credit card processing solutions. Some of the most popular brands are Square, SumUp and PayPal, each of which offers mobile credit card readers and pay-as-you-go terms specifically for mobile credit card processing.

Generally, you download an application from the processor and provide basic information about your business to sign up for an account. Many processors will send you a free mobile credit card swiper so you can begin accepting payments, but you should order a mobile credit card reader that accepts chip cards as they deter counterfeit fraud, and using them protects you from liability if you unknowingly accept a counterfeit card.

Mobile credit card readers connect to your phone either by Bluetooth or through your phone’s headphone jack. When you accept card payments, the transactions are encrypted and transmitted to the processor, and no sensitive card data is stored