Setting up a hassle-free and secure way for customers to pay you is an important step for eCommerce businesses. It helps build trust with your brand and to process online payments easily.
Two popular payment solutions are GoCardless and Stripe. Each comes with its own unique features, fees, and capabilities that work differently for different types of online businesses. Read on as we break down the pros and cons of each payment method and help you find the right fit.
Need more help managing your eCommerce payments? Unicorn Accountants is happy to help! Give us a call on 0208 064 0454 or drop us a message today, and let's chat.
GoCardless vs. Stripe
GoCardless and Stripe are two leading payment gateways that cater to different businesses and their needs. Unlike traditional bank payments and offline options, both Stripe and GoCardless offer a more secure, cost-effective, and scalable solution for your business. They provide a direct payment link between you and your customer's bank account, enabling you to receive one-off or recurring payments.
Deciding which to use depends on your business's needs and how you want your customers to pay. They each have their own unique features, allowing you to customise checkout pages, reach customers worldwide, connect with your business apps and accounting software, and keep customer data secure.
Let's take a look at how each of these versatile payment gateways differs.
GoCardless
GoCardless is a niche payment platform founded in 2011 that specialises in recurring payments and Direct Debits. It suits small businesses and established enterprises alike, thanks to its adaptability and customisable features.
Pros
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Ideal for recurring payments and subscription-based businesses
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Customise payment settings and checkout pages to suit your brand
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Integrates with accounting software for better cash flow management
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Reduces failed payments
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Lower fees for Direct Debit payments
Cons
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Doesn't accept card payments
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Limited international payment options
Stripe
Founded in 2010, Stripe is an established payment tool that works with major credit cards and debit cards, as well as alternative payment methods like Apple Pay and Google Pay. It's a versatile solution for businesses of all sizes.
If you need to offer various ways for your customers to pay, Stripe will help facilitate you.
Pros
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Ideal for eCommerce stores, one-time transactions, and global payments
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Supports various payment methods
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Customise payment pages and settings to match your brand
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Integrates with business apps and accounting software
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No setup fees or monthly fees
Cons
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Higher transaction fees for certain payments
Quickly compare the features of GoCardless and Stripe
|
Feature |
GoCardless |
Stripe |
|
Payment methods |
Direct Debit and bank payments |
Credit and debit cards and bank transfers |
|
Digital Wallets |
No |
Apple Pay, Google Pay, and other digital wallets |
|
International transactions |
Yes (30+ countries, 8 currencies) |
Yes (25+ countries, 135+ currencies) |
|
Local transaction fees |
1% - 1.4% (+£0.20) |
1.5% - 1.9% (+£0.20) |
|
International transaction fees |
2% - 2.4% (+£0.20) |
2.5% - 3.25% (+£0.20) (2% if currency conversion is applied) |
|
Transaction speed |
3-5 working days (or same day with Instant Bank Transfer) |
1-4 working days (or within 30 minutes with Instant Payouts) |
|
Fraud protection |
Protect+ fraud protection and chargeback support |
Radar fraud protection and prevention, and Chargeback Protection |
|
Customer protection |
Authorised by the FCA, ISO27001 certified, strong encryption, and Direct Debit Guarantee |
PCI-DSS compliant, two-step authentication, data security and encryption |
|
Failed payment handling |
Automatic retries |
Automatic retries |
|
Software integration |
Yes |
Yes |
How to choose the right payment processor for your online business
If you want to move away from outdated payment systems and manual invoicing, you need to consider your business needs and which type of product will fit.
The most important thing is to consider what you want your payment processor to do for your business, but also for your customers. It may benefit you to set up Direct Debit mandates with your customers and collect payments directly, or you might need more flexibility when it comes to international payments. You should also consider which platforms and accounting software you use and whether your payment processor can easily integrate.
If you're looking to reach more customers globally and offer various payment options, then Stripe is an excellent choice, but GoCardless is great if you want to focus on setting up secure Direct Debits.
Ultimately, the choice is yours to make.
Types of businesses to use GoCardless
GoCardless is favoured for its ability to provide seamless recurring payments. It is used by various online businesses, including limited companies, charities, startups, and other organisations.
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Subscription-based services (e.g. SaaS companies, streaming platforms, and memberships)
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B2B businesses
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Companies that need to automate invoice collection (e.g. utility companies and insurance providers)
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eCommerce businesses
Types of businesses to use Stripe
Stripe is often chosen for its flexible payment solutions. It is used by various eCommerce businesses and online marketplaces, as well as traditional brick-and-mortar stores.
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Startups that need to provide various payment options
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Retail companies that offer in-person payments
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Subscription-based companies
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International businesses
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eCommerce businesses
Can I use both GoCardless and Stripe for my eCommerce business?
If you're looking to provide a wide range of payment options and find that using just one payment processor doesn't quite cover all of your needs, then you can use both GoCardless and Stripe. This gives you the ability to reach more customers globally and offer recurring payments and Direct Debits, as well as traditional card payments.
Looking for eCommerce accounting advice? Get in touch
Choosing the right payment gateway is just one part of managing your eCommerce business. If you need help taking control of your eCommerce finances, contact Unicorn Accountants today. Call us on 020 8064 0454 for a friendly, no-obligation chat.