How to Use Stripe for Small Business
Stripe is the most flexible payment processor for small businesses. Here's what it does, how to set it up, and when it's the right choice.
2 min read · Updated 2026-05-12
Short answer
Stripe processes card payments online and in person. Sign up at stripe.com, connect your bank account, and you can start accepting payments within minutes. The standard rate is 1.5% + 20p per transaction for European cards (UK). No monthly fees.
What Stripe does
Stripe handles the technical side of accepting money: card processing, currency conversion, bank payouts, receipts, and fraud detection. It integrates with almost every website platform and e-commerce tool.
You can use Stripe for:
- Online store payments (via Shopify, WooCommerce, or a custom site)
- Invoice payments (send a payment link by email)
- Subscription billing (recurring payments for services or memberships)
- In-person payments (with the Stripe Terminal card reader)
Setting up Stripe
- Go to stripe.com and create a free account
- Enter your business details and bank account number
- Choose your integration method:
- No-code: use Stripe Payment Links (create a link, share it — no website needed)
- E-commerce platform: install the Stripe plugin on Shopify, WooCommerce, or Squarespace
- Custom: embed the Stripe checkout using their JavaScript library
Payouts reach your bank account in 2–7 days (standard) or next business day (with Stripe Express in eligible countries).
Stripe fees (UK)
- Standard cards (Visa/Mastercard): 1.5% + 20p
- Premium cards (Amex, international): 2.5% + 20p
- No monthly fee, no setup fee, no minimum volume
For very high volumes (£20,000+/month), you can negotiate custom rates by contacting Stripe directly.
When to use Stripe vs PayPal
Choose Stripe when:
- You have a website or e-commerce store
- You want a professional branded checkout (no PayPal redirect)
- You need subscriptions or custom payment flows
Choose PayPal when:
- Your customers explicitly ask for PayPal
- You're selling on a marketplace that requires it
- You want buyer protection as a selling point
Many small businesses use both — Stripe as the primary processor and PayPal as an alternative.
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