In light of the current economic situation and the latest questions from members, we want to report on a few less conventional finance options. Some businesses are struggling to stay afloat while others are exploring new ways to grow so that they can come out on top when all of this is over. We just finished a Stripe Capital review. Now, let’s take a look at the Stripe Corporate Card.
Whether you’ve heard of the offer or not, it’s smart to stay up-to-date with your business funding options. Here, let’s explore the highlights of the Corporate Card from Stripe.
- What is the Stripe Card?
- See Stripe Next to Other Corporate Cards
- Stripe Company Overview
- Answers to Stripe Corporate Card FAQs
- Conclusion
This Stripe Corporate Credit Card review should tell you basically everything you need to know before you accept an offer or request an invite. Keep reading if that’s what you are interested in.
What is the Stripe Card?
The Stripe Corporate card is a credit card that stands out from the crowd (in a loud way). Invitation-only borrowers can upload their logo to create a branded credit card in a matter of minutes. But, that’s not even the best part.
The most attractive aspect of the card is that it’s free. Users pay 0% interest and there are no fees of any kind: late fees, annual fees, or foreign transaction fees.
Plus, with $5,000 in spending on a Stripe corporate card, cardholders can access $50,000 in free transactions on the platform. In addition, You can earn 2% back on spending in your top two categories, which are automatically calculated by the system. And, cashback is automatically credited to your monthly bill.
So, not only can you eliminate the fees typically associated with credit cards, but you can actually earn money to put toward repayment.
Cards are available as both virtual and physical cards. Upon acceptance, virtual cards are available instantly and physical cards will arrive within a few days.
But, wait, there’s more: Stripe Issuing can enable you to originate your own credit cards to offer your customers.
How Does Stripe Offer Such Low Rates on a Credit Card?
This sounds too good to be true, right? Well, think about it this way — Stripe still makes the bulk of its money from fees for processing transactions. Users whose transactions meet certain criteria are able to make up for the typical fees that would be associated with a credit card through their transaction costs on the platform.
So, the company earns money from all users, even if it’s not through high interest and fees. It actually makes perfect sense. Are you sold yet?
So, What’s the Catch?
The only catch to the Stripe Corporate Card system is that you must be an existing Stripe Payments user to qualify. But, if you aren’t an existing user and you do it now, you can request an invitation. While it may take some time to receive an offer, it’s too good to pass up.
See Stripe Next to Other Corporate Cards
While this is an innovative, highly-beneficial idea, Stripe isn’t the first company to offer such an enticing credit card. Brex is a top competitor and they’ve been around longer. So, quickly, how do the Stripe Corporate Card, Brex, Ramp, and Divvy stack up to one another?
Let’s see what these corporate cards provide, side-by-side.
If you’re not an existing Stripe user and you generate at least $100,000 in daily sales, Brex could be a better fit. Plus, they report to D&B to help you boost your business credit profile. Still, the Stripe Corporate Card comes with more rewards.
Stripe Company Overview
Most business owners have heard of Stripe as a payment processor. And, many eCommerce stores use their transaction service for online sales. But, despite what you might think, that’s not all they do. Here’s more about the financial services offered by Stripe.
What, Exactly, Does Stripe Do?
Stripe started out as a payment platform for businesses. The company also helps companies and individuals manage revenue, prevent fraud, and expand their geographic reach with various applications. The core software that helps users process transactions is cloud-based, so it can easily be integrated with nearly any website or app.
The convenience of the software is meant to simplify the process of collecting payments from anywhere on or offline. Stripe offers payment terminals for in-person transactions and can be used for sales of all types of products and services online.
Here are some of their products:
- Payments – Online payments platform
- Terminal – Programmable, offline transactions
- Radar – Machine-learning-based fraud prevention
- Billing – Invoicing and subscription management
- Connect – Multi-party payments
- Payouts & Issuing – Currency exchange and card management
- Atlas – Business entity creation for startups
- Sigma – Advanced financial analytics and reporting
They are primarily known for payment processing, but the above-list showcases that they are expanding into more realms of business financial services.
How Does Stripe Earn Money?
The quick answer to how Stripe earns money is that their core payment system costs $0.30 per transaction plus 2.9% for each credit card transaction made through the platform. So, on a $50 sale from one of their users, they earn $1.75. And, this isn’t the only revenue they pull in.
In addition to payments, Stripe earns revenue from several of its products. The company charges a set price for terminals in a range from around $50-300, $500 for the Atlas service and an additional $0.02 per transaction for Radar.
Fun Fact: Why is Stripe Called “Stripe?”
Stripe was established as a solution for developers who wanted an easier way to add payment gateways to websites. In the operating system UNIX, the “strip” program removes non-essential data from programs and objects to deliver better performance and less disk space usage. And, the names they had come up with, according to Forbes’ account of CTO, Greg Brockman’s answer to the question, the company couldn’t let go of their UNIX references.
(To think… All this time, I assumed Stripe got its name from the magnetic stripes on the backside of credit cards.)
What Led to the Corporate Credit service?
While many modern credit cards require a lengthy application process and charge high fees, Stripe was in a position to do something that could help their existing users grow their companies and attract new business. Their advantage was that they could develop an algorithm based on the transactions, not the credit of the user. So, they moved forward with their plans.
Answers to Stripe Corporate Card FAQs
While we’ve almost covered everything, there are a handful of common questions we can still answer.
How can you get an offer for a Stripe Corporate Card?
To get an offer for a Stripe Corporate credit card, you must currently process regular transactions through the payment gateway. In addition, you should maintain a high volume of sales. You can request an invitation to the card on the company website.
Does Stripe have a debit card?
No, Stripe does not offer a debit card. But, they do offer a unique and free corporate credit card to select users in the US. You must be invited or request an invite to qualify.
Does Stripe use Visa?
Yeah, the Stripe Corporate Credit card is powered by Visa. Stripe Payments can also be used to process Visa transactions.
Is Stripe owned by PayPal?
No, Stripe is not owned by PayPal. Stripe is owned by brothers John and Patrick Collison. Diane Green also sits on the board. PayPal is currently held under the eBay umbrella, which is a publically-traded company.
Conclusion
If you’re an existing Stripe user with a volume of transactions coming through the platform, the corporate card may provide you with a way to access funds fast and pay for nearly anything you need to power your business with no personal or business credit.
The most attractive aspect of the card is that it’s free. Users pay 0% interest and there are no fees of any kind: late fees, annual fees, or foreign transaction fees — I say, if you get an invite and you are able to pay your balance in full, you’ll only gain from the Stripe Corporate Card.
Are you interested in learning how to obtain up to $100K in business credit in as few as 30 days? If so, join Business Credit Workshop today.