Payment Processing with Stripe
We use Stripe as the main method for processing member payments on your behalf. Stripe is a modern and flexible payment processor, headquartered in San Francisco, CA.
Stripe is available in 24 countries, and allows you to start accepting payment cards quickly and with little effort compared to most payments processors (if your country is not on the list, contact us and we'll find an alternative solution for you).
It makes it happen in two ways:
1. Stripe does not require a merchant account.
Typically, most payment processors require you to open a merchant account with your bank in order to process payment cards. Aside from the hassle of opening a merchant account, operating one also carries additional fees.
The way it works is that Stripe use their own merchant account when processing your payments - the same as PayPal, which allows you to charge payments without a merchant account as well.
2. Stripe handles PCI compliance for you
PCI (Payment Card Industry) compliance is required from anyone processing card payments. Typically, this would require you to meet a set of security criteria to make sure you are properly protecting credit-card information from theft.
- Payment card information never go through your account or our servers. It is transmitted directly to Stripe from the web browser, and is then tokenized - we receive a unique keyphrase from Stripe (a token), that identifies the card.
We use this token to charge your member's card whenever you need to do so. This token only allows your specific account to charge that specific payment card, so there is no risk of payment card information theft.
- When you create your Stripe account, Stripe asks you a few questions on how you handle credit-card data. The answers you provide are used to fill out the Payment Card Industry’s Security Questionnaire, so you don't have to do it yourself.
For example, to use Quick Books payments, you need to read the following document and follow the instructions to be PCI compliant.
A Stripe account is like a swiss army knife
You can use a Stripe account for much more than just member payments through our system - there are literally hundreds of other products that use Stripe for payment processing. You can use it for Mobile payments, eCommerce carts such as Shopify and more. You can see a full list of Stripe integrations on their website.
Receiving your money from Stripe
Similar to other payment processors, Stripe transfers payments you process through it to your bank account automatically, on a rolling basis - meaning you will see the money in your bank account a couple of days after it has been processed. The default is 2 days after the transaction has been processed (with first transfer being 7 days out), but you can change that from your Stripe account. You can learn more about bank transfers on the Stripe website.
Accounting with Quick books and other software
All your transactions are available from your Stripe account. You can export your transaction information into Quick Books format at any time, or even connect it directly to Quick Books online. The same format can be used for many other accounting software as well.
Stripe also provides you with a 1099-K statement if your business is based in the U.S, and you made more than $20,000 and 200 charges in one calendar year. The 1099-K form is used to declare income to the IRS, and you should include it when calculating taxes at the end of the fiscal year.
Setting up your account for billing with Stripe
When you set up your Martial Arts on Rails account for receiving payments, you will be asked to connect it to a Stripe account - if you do not have a Stripe account yet, the system will guide you through the process of creating one, which typically takes less than 5 minutes.
During the process, you will need to answer a couple of questions about your business, provide your business address and bank account details.
Click here for more information on setting up billing for your account.