Online payments are the lifeline of eCommerce. They have to be easily accessible, secure, and provide easy integration to the existing systems. Payment gateways play an important role in ensuring a smooth checkout process for customers. However, choosing the right payment processor can be a daunting task. Two of the most popular payment processors are BigCommerce Stripe and PayPal, which have gained widespread adoption in the eCommerce industry. This article provides an in-depth comparison of BigCommerce Stripe and PayPal to help merchants make an informed decision.
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What is BigCommerce Stripe and PayPal?
Before we compare these two payment processors, let us understand their individual features and capabilities.
BigCommerce Stripe
BigCommerce Stripe is an online payment gateway created by the partnership of BigCommerce and Stripe. It allows merchants to accept credit card payments online. Stripe’s technology includes checkout forms, payment APIs, and their payment processing engine that enables merchants to accept credit and debit card payments online.
PayPal
PayPal is one of the most popular payment processors used in the eCommerce industry. It enables businesses to accept credit cards and PayPal payments for goods and services. Its easy-to-navigate platform is user-friendly and intuitive, allowing consumers to easily transfer money or make payments with just a few clicks.
Integration and Compatibility
The integration and compatibility of a payment processor are critical to a merchant’s choice. BigCommerce Stripe has simple integration and offers seamless compatibility with the BigCommerce platform. This allows for hassle-free integration without the need for any additional plugins.
PayPal is also a popular choice due to its universal compatibility. It is accepted by almost all eCommerce platforms and third-party applications, making it an easy choice for merchants. PayPal also offers a range of payment options, including PayPal Checkout, PayPal Credit, and PayPal Pro for businesses with large-scale transactions.
Payment Security
The most critical factor while choosing an online payment processor is security. Merchants need to ensure that their customers’ sensitive payment information is safe and secure.
BigCommerce Stripe and PayPal both use state-of-the-art encryption methods to secure online payments. Stripe uses a combination of SSL encryption, tokenization, and network isolation to protect sensitive payment data. PayPal also offers advanced security features, such as fraud detection and prevention tools, 2-step verification, and transaction monitoring.
Transaction Fees
Transaction fees play a major role in determining the profitability of an eCommerce store. BigCommerce Stripe and PayPal both have different fee structures, making it important for merchants to understand what they are paying for.
BigCommerce Stripe charges a flat rate of 2.9% + $0.30 per transaction for credit card processing. However, the rate can go down for high volume merchants. The platform does not charge any monthly or setup fees.
PayPal also charges a flat rate of 2.9% + $0.30 per transaction for credit card processing. However, PayPal charges additional fees such as cross-border fees and currency conversion fees.
Payment Disputes and Chargebacks
Payment disputes and chargebacks are a common issue faced by eCommerce businesses. Payment processors need to have an efficient dispute resolution process in place to protect merchants from financial losses.
BigCommerce Stripe offers a chargeback protection service called Chargeback Protection. For $10 per month, merchants can protect themselves against fraudulent chargebacks up to $5,000 per month.
PayPal also offers a dispute resolution center to handle chargebacks and disputes. It enables merchants to communicate directly with buyers and provides effective solutions to resolve payment disputes.
Customer Support
A responsive and efficient customer support team is critical for eCommerce businesses. BigCommerce Stripe and PayPal both offer extensive support options for their merchants.
BigCommerce Stripe offers dedicated support through phone, email, and chat. Additionally, it provides extensive documentation, a knowledge base, and community forums to help merchants with common issues.
PayPal also offers phone, email, and community forums as support options. They also have a resolution center for merchants to track disputes and a resource center that provides information on how to use the platform.
Final Verdict
Choosing the right payment processor is crucial for any eCommerce business. Both BigCommerce Stripe and PayPal are popular payment processors that offer unique advantages and disadvantages. BigCommerce Stripe is an ideal choice for merchants who use BigCommerce as their website builder, looking for simple integration and lower transaction fees. On the other hand, PayPal is universally accepted by almost all eCommerce platforms and offers a wide range of payment options, making it an easy choice for many merchants. Ultimately, merchants should choose the payment processor that best meets their specific needs and budget.
In conclusion, if you’re looking for a payment gateway with easy integration and lower transaction fees, BigCommerce Stripe is your best bet. If you need universal compatibility and a wide range of payment options, PayPal is the clear choice.