GoCardless vs Stripe for e-commerce payments

Anna Shvets
GoCardless vs Stripe - woman in white at a white desk with laptop and a credit card in her hand

If your e-commerce store is hosted through WooCommerce or Shopify, you can choose your payment system. Let’s look at a couple of popular options – GoCardless vs Stripe.

E-commerce stores can be run entirely on marketplaces such as Amazon FBA or eBay, with payment processing options out of your hands, but if you are hosting your store on a private website, you get to set the payment terms. You will need to find an option that is easy and accessible for the customer yet keeps admin and fees to a minimum. GoCardless vs Stripe… who will win?

GoCardless

GoCardless launched into the marketplace in 2013 and has proven to be a successful and popular payment method. It is unusual in as much as it takes payments via direct debit, but with its flexible options, you can use it to take a one-time direct debit for standard e-commerce payments.

Of course, should you use subscription selling as an option on your store, GoCardless makes recurring payments quick and easy too.

Stripe

Stripe launched in 2010 and has been a constant in the world of online business ever since. It has stayed at the forefront of the market, moving with the times and even allowing payments in crypto. It works in a more traditional way, allowing people to pay via debit or credit card.

Integrations

GoCardless integrates with most accounting software, including our recommendation for e-commerce entrepreneurs, Xero. Stripe, as the longer-established payment method, is also easy to integrate with Xero amongst others.

Stripe can also connect easily to WooCommerce, as can GoCardless. Shopify also connects well with both options.

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GoCardless vs Stripe - Woman in a rust coloured suit jacket and white top writing at a desk

GoCardless vs Stripe Pricing

This is where GoCardless and Stripe differ.

For European cards, Stripe charges 1.4% + 20p. For non-European cards, this increases to 2.9% + 20p. There are no subscription costs, just pay-as-you-go transaction fees. It can take 7-10 days to receive your funds.

GoCardless’ direct debit system means funds arrive within 5 days for existing clients and 6 days if they are new to your site. The rates on GoCardless are exceptionally low at just 1%, a major factor in its popularity!

The winner for e-commerce

GoCardless is very clear that if instant payments are needed, in the ways of most e-commerce transactions, they are not the tool for the job. However, with more sites moving to subscription selling, it is worth having in the back of your mind as an affordable and effective way to manage these orders.

Stripe may charge higher fees, but it is the right tool for traditional e-commerce stores. While the fees and wait time for funds to clear may be frustrating, it is fit for purpose and easy to integrate into your e-commerce site. Keep an eye out for our comparison of Stripe vs Square in the near future.

Next Steps

If you’re looking for accounting guidance for your e-commerce store or want some help automating your accounting through Xero, our team is here to guide you. Get in touch to find out how to grow your store and optimise your accounting.

The best time to act is now.

hello@unicornaccounting.co.uk