Credit cards · Online Payments

Credit card/payment processing?

Lucia Guh-Siesel CEO & Founder, Bandalou

March 28th, 2015

Can anyone recommend a credit card processing service with great low rates and decent service for startup companies?  We anticipate a high number of customer transactions and are looking at Stripe, Square, and Braintree. 

Does anyone have comments about each of these services?  Who's the best and who else should we also consider?

Thanks in advance.

Benjamin Olding Co-founder, Board Member at Jana

March 28th, 2015

If you haven't gone through it before, go with the easiest to start & optimize later.  We used Braintree; it was easy and worked the first time with no issues for our customers.  As a percentage of your revenue, the difference in fees for the first six months isn't going to break you; messing up your initial launch or accounting might.  

All fees are annoying, but don't lose sight of the business objectives and do something clever (i.e. non - standard) just to optimize revenue you don't have yet.  Try to only be clever with things you have experience with - advice I give mostly as a reminder to myself to follow.

Helen Adeosun

March 28th, 2015

Hey Lucia!

We use Stripe and I am quite happy with their turnaround on the payments (2 days) and the cost of transacting. Stripe needs a little more configuring but I have also heard a lot of great things about Braintree's support services. Would love to know what you select and why.

Ian Maddox

March 28th, 2015

Stripe and Braintree are very developer friendly, but you pay a bit more in fees. We switched to Merchant Warehouse, a firm who does cost-plus billing as opposed to flat or tiered pricing. We paid significantly less than we did with FirstData/LinkPoint. Dev integration was almost as easy as Stripe, and they have great support for payment profiles (an absolute must if you're doing recurring billing).

The biggest drawback on switching to MW is that they have a harder time articulating how much savings you'll see, especially if you don't already have transaction flow. If you do have active sales, you can give them a block of transaction data and they can show you side-by-side if their pricing model will benefit you.

Kelly Cullum

March 29th, 2015

It appears your solution may require a way for businesses to run payments within your system. If that's the case you can monetize that as an additional revenue stream. It's simple, it just a matter of finding the right payments provider that's inline with your vision and can execute how you see that process going. We have some features rolling out that instantly approve a merchant, provides a portal, and generates residual income for your business. I am happy to help if you need it.

Lane Campbell Lifelong Entrepreneur

March 28th, 2015

All of the services you mentioned have been great for my needs.  I've been able to get lower rates though through traditional merchant processing resellers.  The best rates I have ever had were through http://donateyourprocessing.com which is an Authorize.net reseller.  

Chris Korhonen Experienced Product Engineer & Leader, CTO of Minibar Delivery

March 28th, 2015

Both Braintree and Stripe are good choices if you want to get up and running quickly, great developer SDK's etc. and support for the latest innovations such as ApplePay. Easy to use dashboard too. 

As some have said, if you are doing a lot of volume and don't care too much about the developer end then you can probably get better rates with authorize.net or similar. 

David Crooke Serial entrepreneur and CTO

March 28th, 2015

These are all great services. I've also used PayPal with clients. The one thing I'd say is don't get overly focused on the discount rate (percentage) ... look at the total cost including all fees and value received.

Jeff Kuchak Owner/Artis at Storm Spoons

March 29th, 2015

I have used square and PayPal. Square puts your money directly into your account very fast, where PayPal makes you jump through hoops and it takes much longer. I use mine for running cards at art/craft shows. Both allow off line processing and invoices can be sent to customers. 

Mike Moyer

March 29th, 2015

My developer's love Braintree and there are no fees on your first $50,000 in charges... I'm not sure if the others do this...

-Mike

J Moore Publisher: EV World. Founder & Interim CEO of QUIKBYKE

March 29th, 2015

I am wanting to do credit card processing for electric bicycle rentals and was looking to do Square using their card swipe device on an iPAD.  Since the location will be out-of-doors, are there better options?