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If you operate an online store and use Stripe to process payments, you’ve likely noticed that transaction fees can significantly affect your profits. Luckily, there are several strategies you can implement to minimize these costs while still providing a seamless payment experience for your customers.

Understanding the Costs

Stripe typically charges a standard fee of 2.9% plus 30¢ per successful credit card transaction, which can accumulate quickly, especially if you have high sales volumes. For example, if you generate $10,000 monthly, you’d be losing approximately $290 to Stripe alone. This can be even more burdensome if your transactions are mostly smaller amounts.

Reducing these fees can directly impact your bottom line and allow you to reinvest those savings into other parts of your business. Here are several effective strategies to help you cut down on transaction costs without compromising service.

Tip 1: Accept ACH Payments (For U.S. Customers)

For businesses in the United States, consider enabling Automated Clearing House (ACH) payments. These transactions often incur a flat fee of just 0.8%, capped at $5, compared to credit card fees that can be much higher. For example, a $1,000 purchase would incur a $29.30 fee through credit card payment, but only $5 through ACH.

To set this up, you can utilize a plugin like WP Simple Pay, which allows you to easily add ACH payment options to your forms or WooCommerce products.

  1. Install and activate the WP Simple Pay plugin.
  2. Follow the setup wizard to connect to your Stripe account.
  3. Create a new payment form and select an ACH Direct Debit template to use.

Tip 2: Accept Bacs Direct Debit Payments (For UK Customers)

If your business caters to UK clients, Bacs Direct Debit can be a viable alternative to credit card payments. With fees around 1% per transaction and a cap of £2, you’ll retain a larger percentage of your sales compared to card payments.

You can also utilize WP Simple Pay to create a Bacs Direct Debit payment form.

  1. Install and activate WP Simple Pay.
  2. Use the Bacs Direct Debit template when creating a new payment form.
  3. Adjust your settings to accommodate Bacs payments.

Tip 3: Upgrade to Premium Plugins

Using free plugins may seem enticing, but they often come with additional fees that can increase transaction costs. By upgrading to premium plugins such as WP Simple Pay Pro or Easy Digital Downloads Pro, you eliminate these extra fees and only pay Stripe’s standard rates.

Bonus Tip: Pass Payment Processing Fees to Customers

While not always ideal, passing the payment processing fees to customers can help you maintain profit margins. This means adding these costs to the overall purchase price. Be conscious, however, that this strategy can potentially deter sales. If you decide to go this route, communicate transparently with your customers about the reasons for the increase.

By implementing these strategies, you can effectively reduce your Stripe transaction fees, increase your profit margins, and ultimately reinvest those savings into growing your business.


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