Stripe vs WooCommerce Payments: Which is Best?

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By Ewen Finser

Last Updated on July 2, 2023 by Ewen Finser

If you are trying to figure out if WooCommerce Payments or Stripe is the best payment gateway, you are in the right place.

I went down this rabbit hole when we were setting up a digital products brand recently. It’s actually really confusing and hard to decide!

I created this comparison guide to walk other digital operators through the research steps I took to find the right solution for our business.

Disclaimer: for different businesses we use Stripe and WooCommerce. So it really does depend. Rather than leave you with that, I’ll dig into what these factors are and which types of businesses should opt for either platform.

Understanding Payment Gateways

Before diving into the comparison, it’s essential to understand what a payment gateway is and how it functions. In simple terms, a payment gateway is a third-party service that enables online stores to accept and process payments. It acts as a bridge between customers’ payment methods and merchants’ bank accounts, ensuring secure and fast transactions.

Stripe and WooCommerce Payments: An Overview

  • Stripe is a robust payment processing platform that offers a suite of APIs to facilitate online transactions. Its popularity stems from its ease of use, wide range of accepted payment methods, and seamless integration with various eCommerce platforms, including WooCommerce.
  • WooCommerce Payments, on the other hand, is a payment solution specifically designed for WooCommerce. Powered by Stripe, WooCommerce Payments provides a more integrated user experience by allowing store owners to manage payments directly from their WordPress dashboard.

High Level Summary at Glance

Here’s my top line take for a quick reference:

WooCommerce Payments
Stripe charges 2.9% + 30¢ per successful card charge for businesses in the US. For international transactions, an additional 1% fee is applied.
WooCommerce Payments has the same pricing as Stripe, charging 2.9% + 30¢ per successful card transaction for US transactions and an additional 1% for international transactions.
ACH Payments
Stripe supports ACH payments, allowing customers to pay directly from their bank accounts.
WooCommerce Payments does not support ACH payments. Customers need to use debit or credit cards.
Payment Platforms
Stripe supports a wide range of platforms including web, iOS, and Android.
WooCommerce Payments is designed specifically for WooCommerce platform, limiting its use on other platforms.
Business Solutions
Stripe provides solutions for various business models, including ecommerce, SaaS, marketplaces, and platforms.
WooCommerce Payments is primarily designed for ecommerce businesses using the WooCommerce platform.
Support for International Payments
Stripe supports over 135 currencies, making it suitable for businesses with international customers.
WooCommerce Payments supports multiple currencies but not as many as Stripe.
High Volume Businesses
Stripe can handle high-volume transactions, making it suitable for large businesses.
WooCommerce Payments can also handle high-volume transactions, but it’s more targeted towards small to medium-sized businesses.
Stripe offers a robust API, allowing businesses to integrate it into their own applications.
WooCommerce Payments is directly integrated into the WooCommerce dashboard, making it more accessible for WooCommerce users.
Availability of Funds
Stripe initiates transfers to your bank account on a 2-day rolling basis, but can take 7-14 days to arrive in your bank account. 
WooCommerce Payments transfers funds to your bank account within 2-7 business days based on your settings.

Stripe vs WooCommerce Payments: A Comprehensive Comparison

This section delves into a detailed comparison between Stripe and WooCommerce Payments, focusing on various crucial factors such as ease of use, cost, availability, and POS integration.

Ease of Use

An intuitive and user-friendly payment gateway is critical for a seamless customer experience. Both Stripe and WooCommerce Payments score well in this aspect.

  • Stripe allows customers to complete transactions directly on your online store without redirecting them to a separate checkout page. This lowers the chances of cart abandonment and enhances the checkout experience.
  • WooCommerce Payments offers a similar checkout experience. However, it goes a step further by incorporating all payment-related data within the WordPress dashboard. This makes it easier for store owners to track and manage transactions.

Cost Analysis

Cost is a significant factor when choosing a payment gateway. Both Stripe and WooCommerce Payments have similar fee structures, with minor differences.

Transaction Fees

Both platforms charge a transaction fee of 2.9% plus $0.30 for domestic transactions. For international transactions, WooCommerce Payments charges an additional 1.5%, whereas Stripe charges an additional 1%.

In-Person Sales

For in-person sales, WooCommerce Payments charges 2.6% plus $0.10 per transaction, with an extra 1% charge for international cards. Stripe, however, charges 2.7% plus $0.05 per transaction.

Currency Conversion Charges

Both platforms impose a 2% currency conversion fee.

Dispute Charges

In case of disputes, both Stripe and WooCommerce Payments charge $15 per dispute for US-based businesses.

Stripe vs WooCommerce Payments Fees Comparison

Here’s a summary of the key trade-offs to consider:

WooCommerce Payments
Transaction Fees
2.9% + 30¢ per successful card charge for businesses in the US
2.9% + 30¢ per transaction for US-issued cards and an additional 1% for cards issued outside the US
ACH Direct Debit
0.8% capped at $5
Not supported
International Cards
An additional 1% fee applies if the card is issued outside the US
An additional 1% fee for cards issued outside the US
Currency Conversion
Additional 1% fee if currency conversion is required
Additional 1% fee if currency conversion is required
Refund Costs
Refunds are free, but the original transaction charges aren’t returned
Refunds are free, but the original transaction charges aren’t returned
Chargeback Fees
Setup/ Monthly Fees
No setup or monthly fees
No setup or monthly fees
In-person Payments
Starts at 2.7% + 0¢ for Tap, Dip, and Swipe transactions
Not supported
ACH Credit
1.5% capped at $5
Not supported

Availability and Supported Currencies

Both platforms support multiple currencies, but there’s a significant difference in their availability across countries.

  • Stripe is available in 47 countries and supports more than 135 currencies, making it an excellent option for businesses with a global customer base.
  • WooCommerce Payments is available in 18 countries and supports more than 100 currencies. However, its in-person transactions are limited to the US and Canada, which may be a drawback for businesses operating in other regions.

Integration with POS Systems

If your business operates both online and offline, it’s crucial to choose a payment gateway that integrates seamlessly with your POS system.

  • Stripe, through its Stripe Terminal, offers an easy setup for in-person payments. It works well with various WooCommerce POS systems, providing a unified platform for managing online and offline transactions.
  • WooCommerce Payments, while offering robust integration with WooCommerce, is limited when it comes to in-person transactions due to its availability only in the US and Canada.

Other Stripe Competitors Worth Considering

There are definitely some other payment solutions to consider as Stripe alternatives. If you’re in the evaluation stage still, check these out:

Final Verdict: Stripe vs WooCommerce Payments

Taking into account the factors discussed above, both Stripe and WooCommerce Payments offer robust solutions for WooCommerce stores.

However, Stripe’s wider availability, especially for in-person transactions, gives it a slight edge over WooCommerce Payments. Therefore, if your business operates both online and offline in multiple countries, Stripe is likely the better choice.

However, remember that the best payment gateway for your store ultimately depends on your specific needs, including your target market, business model, and personal preferences. Always consider these factors when making your decision.

Wrapping Up

Choosing the right payment gateway is a critical decision that can significantly impact your online store’s success.

Both Stripe and WooCommerce Payments offer robust features and competitive pricing, making them viable options for any WooCommerce store.

However, consider your specific needs and circumstances before making a final decision.

Other Payment Gateway Guides

If you are operating on a specific platform, you might find these guides helpful:


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