Replace stripe with instantdebit
Why Stripe?
For years stripe has been the dominant payment provider of choice for ecommerce sites. It’s for good reason- their implementation is straightforward and websites can be taking payments in hours rather than days or even months.
Website developers love it because of its simplicity, it’s got a great interface for users and is intuitive to use.
The Benefits for Moving From Stripe?
Benefit Number 1 – The Cost Savings are Massive!
Dependendent upon which rate your contract is with Stripe you will be paying Stripe either 1.5% plus 20 pence per transaction or 1.6% plus 20 pence per transaction. Here are some example costs that you pay with Stripe compared to the costs of instantdebit
Transaction Amount | Stripe | InstantDebit | Saving £ | Saving % |
£10.00 | £0.35 | £0.19 | £0.16 | 46% |
£50.00 | £0.85 | £0.19 | £0.66 | 78% |
£150.00 | £2.45 | £0.19 | £2.26 | 92% |
£300.00 | £4.70 | £0.19 | £4.51 | 95% |
£500.00 | £7.70 | £0.19 | £7.51 | 96% |
£1,000.00 | £15.20 | £0.19 | £15.01 | 99% |
So, for an ecommerce site turning over £1m a year with an average transaction value of £150 the fees with Stripe would be £ 16,331. With instantdebit the fees would be £ 1,266, a saving of over £15,065 or 92% less.
For an ecommerce site turning over £10m a year with an average transaction value of £500 then the stripe fees will be £154,000 and the instantdebit fees would be £3,800 a saving of £150,200 or 97%.
Benefit Number 2 – The Time it Takes to get Paid by Stripe – You Free up Between Two and Four Days Cashflow
For the vast majority of ecommerce sites using Stripe they receive their money two working days after the payment has been taken. So, for a payment that gets taken on a Monday you would receive the money on a Wednesday. However, if you take a payment on Friday you will receive the funds on Tuesday.
Benefit Number 3 – No Arbitrary Holds on Your Money
If your business makes a bad decision or you get unlucky then Stripe can delay or even hold your money and it can take weeks or months to get your money, which for a lot of businesses means insolvency. All this when your business needs the money the most!
Benefit Number 4 – It’s Safer for the Consumer
Because the payment has to be approved in a banking app then biometrics are used to authorise the payments. If your customer’s debit card is stolen thieves will use tap and pay to empty your account. It is impossible for this to happen with instantdebit.