Is Stripe safe? How secure is Stripe for payments?

Stripe is a payment processing platform that offers low fees for online payments and plenty of customization options. Even though it has many developer tools, it also offers a straightforward interface.

If you run a business with an online presence, you can use Stripe for online card payments. You can also use Stripe as a business that trades globally. It supports currency conversion and is available in 195 countries across 135+ currencies.

But before you start using Stripe, there is one question you will want to be sure of: Is Stripe safe?

Is Stripe safe and secure?

Many business owners express concern about the security of payment processing platforms.

Without a certain level of security, the service lowers in value. After all, you want your customers to feel comfortable making purchases through your online store.

Several well-known brands use Stripe, like takeaway company Deliveroo, and accommodation hub Booking.com.¹ This can be a good indicator that it is safe to use Stripe, but it's worth doing some research to be certain.

How secure is Stripe payment?

Payment security is a priority for Stripe. This is evident through the various measures it uses to protect card information.

Here are some of those security measures, which should put your mind at ease if you’re on the fence about Stripe:

• PCI Service Provider Level 1 Certification - The highest level of certification in the payments industry.²
• Encrypted Data and Communication - The service uses PGP keys for safe communication.
• Money Transmitter Licenses - Stripe complies with legal regulations for payment platforms.

Is Stripe FDIC insured?

Yes, with Stripe, you can set up an account that is (Federal Deposit Insurance Corporation) FDIC insurance-eligible.

This is a big deal, since if something goes wrong with the company, you’re not the one who has to pay.

If you have $250,000 or less in the account, in the unlikely event that the company goes bust, the FDIC will reimburse the money lost.

Why does Stripe need my SSN?

Due to legal obligations, Stripe has to request your Social Security number (SSN) so that it can verify your information.

In this case, the SSN serves the purpose of identification. It’s like when you submit a voided check to supply your bank information. Except, in this case, it’s so that Stripe knows you are who you claim to be.

Stripe also needs to know your SSN to verify that you can act on your business’s behalf. This avoids the issue of identity fraud, which can be a huge headache for everyone involved.

Stripe vs PayPal security

Security is a huge factor in the payment industry. The last thing you want as a business is to have customers complain about issues at the checkout stage.

A comparison to draw with Stripe is the payment industry giant that is PayPal. It's interesting to see how the two services compare when it comes to security.

By now you’re well aware of Stripe’s top-notch security systems, but how does PayPal fare?

You can read more about PayPal security, but in short: you don’t get to be one of the leading payment services without high-quality security.

Like Stripe, PayPal offers encryption to protect personal data. However, with PayPal, the recipient of the money isn’t shown any bank information from the sender, and PayPal protects both parties.

PayPal is not FDIC insured, meaning FDIC insurance does not protect you against the risk of PayPal’s insolvency. Leaving a large sum of money in a PayPal account isn’t as secure as leaving it in a bank.

With Stripe, the FDIC will reimburse up to $250,000 in case of insolvency.

Stripe and PayPal both have plenty to offer businesses, so you’ll need to make a judgment call based on what’s best for your company. If you need help deciding, you can read the guide on Stripe vs PayPal.

How do I receive funds from Stripe?

Sending money from Stripe is easy, and you can make the pay-out straight away.

Here’s a step-by-step process to receiving funds from Stripe:

• First, go to the Stripe Dashboard and log in with your details.

• Head to ‘Balance,’ then ‘Payouts.’

• Click ‘Pay out funds instantly.’

• Now type in the sum of money you wish to send and the debit card you want to send it from. Or, you can use a Visa or Mastercard for this.

• Finally, click ‘Pay out’ to finish the process. Your funds should arrive within 30 minutes.

Use Wise Business for low-cost and secure international transfers

Every month, over 10,000 businesses join Wise to send, receive and manage their money.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 160+ countries.

Wise safeguards your money. It's also regulated by the Financial Crimes Enforcement Network (FinCEN) in the US, and other regulators around the world.

You can also connect Wise and Stripe to receive payments with ease. So, not only is your money secure, but you can also save money when you use Wise Business.

Get a Wise Business account online 🚀

Sources:

All sources checked 3 May 2021.