Braintree vs Stripe: Comparison of Two Top Online Payment Gateways August 2, 2021July 22, 2021 196 It is expected that in 2022, 28% of payments will be made with eWallets, 52% with credit and debit cards, and only 17% with cash. This data indicates that the majority of the transactions will be processed online.Now let’s face the fact that every entrepreneur wants to make a profit through their online businesses, and choosing the right payment provider influences the online income. No one would want to make the slightest mistake.According to a Datanyze report, Stripe and Braintree are two leading payment processors. So, being an entrepreneur, you are considering choosing between Braintree vs Stripe for your business, then this blog is for you. We have shared every essential information that you need to make the right choice. Let’s get started.ContentsWhat is Braintree?What is Stripe?Braintree vs Stripe: Top 10 Difference Between Two Payment ProcessorsSimilarities Between Braintree and StripeStripe vs Braintree: Which One is Best for Your Business?FAQsDoes PayPal own Braintree?How long will it take to get a Braintree account?Do customers also need a Stripe account to purchase from an online shop?ConclusionOverview of Payment Gateways Used for Online PaymentA payment gateway is a technology that helps customers to make payments online. The payment gateway feature is integrated by e-commerce, online retailers, and various marketplaces and e-businesses.A payment gateway helps to establish a secure network between a client, the online platform, and a bank account. With the gateway, a client or customer makes electronic payments in real-time. Also, payment gateways are integrated to authorize card payments and check for frauds.The providers of payment gateways charge a transaction fee to offer gateways. Usually, the clients have to pay a percentage of the total sale and a per-transaction fee. However, other pricing models can exist too.Moreover, every credit card processing business offers a payment gateway for their customers, whether it’s their own proprietary version or an account with a supported gateway. The best-known payment gateways are Braintree and Stripe.Here is the trend of Stripe and Braintree in the USA over the last year.Source: Google TrendsWe will discuss Braintree vs Stripe in detail today to know more about them.What is Braintree?Braintree is a gateway provider based in Chicago, the USA. It offers mobile and web payments systems for eCommerce businesses, where clients get a merchant account and a payment gateway.Source: Braintree WebsiteBraintree is a service provider that offers gateway services for merchants in more than 45 countries. Braintree offers support for over 130 currencies with streamlined PayPal integration.Braintree is owned by the super popular payment system PayPal. Therefore, these two payment providers work really well in unison. Also, the payment service supports both iOS and Android for mobile developers.Features of BraintreeHelp detect and prevent fraudulent online transactionsSafeguard your customer’s informationAccept PayPal, cards, and VenmoEasy to check key transaction insightsPay your sellers and freelancers globally Braintree Pricing PlansStandard pricing – 2.9% + $.30 per transactionTransaction Fees2.2% + $.30 per transaction for Visa, Mastercard, Discover, JCB, digital wallets, and Diners Clubs cards3.25% + $.30 per transaction for American Express cards2.9% + $.30 per transaction for Venmo0.75% per transaction for ACH paymentsSupported Countries45 CountriesProminent Clients Now let us take an overview of Stripe along with its features and essential information. Get to know more about Stripe in the next section.What is Stripe?Strips is an Irish-American financial service and software as a service (SaaS) company. The Stripe payment gateway offers payment processing software and application programming interfaces (APIs) for several e-commerce websites and mobile applications.Source: Stripe WebsiteUntil now, Stripe has offered its services to millions of businesses of all sizes, from startups to large enterprises, such as Amazon and Shopify. Stripe’s software and APIs help its clients to accept payments, send payouts, and manage their businesses online.Stripe is now available in 34 countries and Stripe supports more than 135 currencies. Stripe accepts various payment methods, such as Visa, Mastercard, Maestro, and AliPay.Features of StripeAccept online payments from debit and credit cardsAuthorize payment using the customer’s online banking credentialsProcess payments and show prices in a customer’s preferred currency to avoid conversion ratesPrevent fraudulent activities with Stripe Radar that is fully integrated with the paymentsEasy to sync Stripe data to export information about payments, refunds, and feesGet unified payouts across all the other payment methods and currencies Stripe Pricing Plans2.9% + $.30Transaction Fees2.9% + $0.30 for cards and wallets0.8% and capping at $5.00 for ACH direct debit cardSupported Countries34 CountriesProminent Clients After knowing Braintree and Stripe, we have compared both the payment processors based on different factors, such as Stripe and Braintree processing fees, payment options, and card types.Looking for a Web or App based eCommerce Solution?Want to discuss your business requirements? Want to get a free consultation? Contact Us To Get Your Free QuoteStripe vs Braintree: Top 10 Differences Between Two Payment ProcessorsBefore discussing the top differences between both the payment systems, let’s have a gist of Stripe as well as Braintree through the following table.FactorsBraintreeStripeChargeback Fee RefundDoes not give a refundStripe will refund chargeback fees if the dispute is in your favorInternational Fees1% of the transactionFreePayment OptionsPayPal Payments, Venmo, Apple Pay, Android PayAliPay, Apple Pay, Android PayCard TypesPayPal, Venmo, Visa, Mastercard, American Express, Discover, JCB, and Diner’s ClubAmerican Express, China UnionPay (CUP), Discover & Diners, Japan Credit Bureau (JCB), Mastercard, VisaPayment Settlement2 business days, 4 days for AMEX2 business days (or less frequently if desired)Availability45 countries34 countriesBitcoin FeesFirst $1,000,000 is free, then 1%Doesn’t offer Bitcoin payment servicesGateway ProviderYes – $49 a month and 10 cents per transactionDoesn’t provide a gateway to existing merchant processing accountsCustomer ServiceEmail and phoneEmail and web formSecurity3D Secure 2PCI & DSS compliantWe will also discuss all these top 10 differences between Braintree and Stripe in detail. Now dive in deeper to know more about them for your business requirements.Chargeback Fee RefundWhen it comes to chargeback fee refund, only Stripe refunds a chargeback fee if you win the dispute.On the other hand, Braintree doesn’t offer this service. Thus, you don’t get a chargeback fee refund in Braintree.Moreover, both Stripe and Braintree charge the industry standard $15 fee for chargebacks. Winner: StripeInternational FeesBoth payment processors support more than 100 currencies. However, both Braintree and Stripe charge different fees for international payments.International fees are calculated when a customer uses different world currencies and conversions. Thus, Braintree charges 1% for international payments, and Stripe doesn’t charge for international transactions. Winner: StripePayment OptionsStripe and Braintree support the major credit card types, including Visa, MasterCard, JBC, Diner’s Club, AMEX, Discover.Both providers enable the usage of some modern payment methods, such as Apple Pay and Android Pay.While both are pretty similar in terms of available payment methods, Alipay can be implemented only with the Stripe integration, while PayPal and Venmo are used with Braintree only. Winner: Stripe & BraintreeCard TypesAlthough a few card types are common between Stripe and Braintree, there are still some cards that are different for both cases.Similar Card Types: Visa, Mastercard, JCB, AMEX, Apple Pay, Android Pay, Discover & DinersDifferent Cards-supported by Braintree: PayPal, VenmoDifferent Cards-supported by Stripe: AliPay, China UnionPay (CUP) Winner: Stripe & BraintreePayment SettlementThe payment settlement time is also different for both payment processors. Where Braintree takes 2 days for payment settlement (4 days for American Express Cards), Stripe takes less than 2 days to settle payments.In terms of payment settlement, Stripe offers better services to its clients as compared to Braintree. Winner: StripeAvailabilityWhen it comes to the availability of payment processors, Braintree payment processor offers its services in more than 45 countries. On the other hand, Stripe offers its services in more than 34 countries.Some common countries that avail the benefits of Braintree and Stripe are the United States, Canada, Austria, Germany, Denmark, New Zealand, Ireland, Netherlands, France, and Portugal. Winner: BraintreeBitcoin FeesThe Bitcoin transactions are no more available on Stripe. Earlier, Stripe offered the service for Bitcoin transactions. However, they discontinued the Bitcoin transactions service from April 23, 2018.Braintree accepts Bitcoin transactions and processes the first $1,000,000 of Bitcoin payments for free. After the first $1,000,000 of Bitcoin payments, Braintree charges a 1% fee to convert money from Bitcoin to USD. Winner: BraintreeGateway ProviderIf anyone decides to use Braintree despite being locked into any other payment processing account, they can surely use it as their gateway to accept payments. Braintree charges a flat monthly fee of $49 to offer their services, with additional fees of 10 cents per transaction.On the other hand, Stripe doesn’t provide their services just for acting as a gateway. Stripe must be used with a Stripe merchant account only. In case you are stuck in such a situation, you are recommended to choose Braintree over Stripe. Winner: BraintreeCustomer ServiceBraintree offers great customer services through various channels, such as email or phone. Being an entrepreneur, you can directly communicate with the customer support team and get the best resolution for your business challenges.You can connect with the Stripe team through email or web form. However, there is no direct communication channel to get in touch with the customer service team, where you can discuss one-on-one. Winner: StripeSecurityBoth the processors are highly secured, compliant and have advanced fraud checking and prevention technology.Braintree is compliant with 3D Secure 2, and Stripe is PCI & DSS compliant to prevent frauds during online domestic and international transactions.After discussing all the differences, we have shared some of the top similarities between Stripe and Braintree. Let’s discuss those similarities one by one. Winner: Stripe & BraintreeSimilarities Between Braintree and StripeThere are various factors that are similar in the cases of Braintree and Stripe. We have shown the same through the following table to give you a quick gist of the similarities.FactorsBraintreeStripeFees for Credit and Debit Transactions2.9% of transaction amount + 30 cents per transactionChargeback Fees$15Refund FeesNo fees for refunds or failed transactionsAccepted CardsVisa, MasterCard, AMEX, Diners Club Credit Cards, JCB, DiscoverBilling ServicesRecurring billing, subscriptions, discount codesAutomatic Card UpdatingYes, both providers update details of expired credit card data automaticallyThese are the top similarities between both Stripe and Braintree. Now, let’s discuss each similarity in detail to know more about Stripe and Braintree.Fees for Credit and Debit TransactionIt’s a tie after comparing both Braintree and Stripe for the pricing model. Both the gateways help in accepting payments with a flat fee of 2.9% of every transaction and an additional fee of 30 cents per transaction.Additionally, Stripe and Braintree offer discounts to businesses for making sales of more than $80,000 in a month. Braintree will process your first transaction of $50,000 free of cost and help you to save $2,000 or more, which adds a slight advantage over Stripe.Chargeback FeesThe chargeback fee is the same for both Stripe and Braintree. They charge the industry standard $15 fee for chargebacks.However, only Stripe will refund you the fee if the dispute is in your favor and the customer is found to be at fault. In such conditions, you are bound to get a refund, and the chargeback is not upheld.Refund FeesBoth payment gateways do not charge you for any refunded and failed transactions. So, if you are worried about the refund fees, then you can choose either Braintree or Stripe for your business requirements. You will not be charged.Accepted CardsSeveral card types are common for Stripe as well as Braintree. Here are some of the common card types:VisaMasterCardAmerican ExpressDiners Club Credit CardsJapan Credit Bureau (JCB)DiscoverApple PayAndroid PayBilling ServicesRecurring Billing: Both platforms offer minimum fees or recurring monthly fees. This adds an advantage for small start-ups and businesses.Subscriptions: Subscriptions allow charging a customer based on a recurring system. It is easy to create, retrieve, update, and cancel subscription plans.Discount Codes: Discount coupons or codes help to give some percent discount from the transaction fees. Coupons may be applied to invoices or orders and do not work with conventional one-off charges.Automatic Card UpdatingBoth providers update you with the details of expired credit card details automatically. It becomes really easy to keep track of the details of your credit card.However, after discussing essential information about Braintree and Stripe, such as their differences, similarities, and features, you must want to know which payment processor would be the best for your business requirements. So, check the next section to find out which processor perfectly fits your requirements.Stripe vs Braintree – Which One is Best for Your Business?To identify which payment gateway would fit the best for your business, we have created the following table based on the important factors.We have also mentioned the result after comparing both the processors. Now, it would be easy for you to pick the best processor according to your requirements.FactorsBraintreeStripeResultFees – Credit and Debit2.9% of transaction amount + 30 cents per transactionTieFees – BitcoinFirst $1,000,000 is free, then 1%NABraintreeFees – Chargeback$15Stripe will refund chargeback fees if the dispute is in your favorStripeFees – International Payment1% of the transactionNoneStripeAccepted CardsVisa, MasterCard, AMEX, Diners Club Credit Cards, JCB, DiscoverTieOther Payment MethodsPayPal, Venmo, Apple Pay, Android PayAliPay, Apple Pay, Android PayBraintreeGateway OnlyYes, for monthly fees of $49 and 10 cents per transactionNoBraintreeOther Billing ServicesRecurring billing, subscriptions, discount codes, add-onsRecurring billing, subscriptions, discount codes, couponsTiePayment Settlement2 business days, 4 days for American Express2 business days (or less frequently if desired)StripeMobile PaymentsYes, online and via the web appTieMarketplace PaymentsBoth providers offer thisTieNative LanguagesRuby, Python, PHP, Java, Microsoft .Net, NodeCurl, Ruby, Python, PHP, Java, Node, GoNAIntegration with Existing Apps and ServicesYes, over 40 apps and services, including Magento, FreshBooks, and RecurlyYes, over 300 apps and services, FreshBooks, Zoho, and FreeAgentStripeSupport DocumentationStandardComprehensiveStripePOS TerminalsNo, neither provider offers thisTieCustomer Service ReputationVery good, contact by email or phonePoor, contact by email or web formBraintreeAutomatic Card UpdatingYes, both providers update expired credit card details automaticallyTieSafety and Security3D Secure 2PCI & DSS compliantTieGoing through this table, you must have understood that in the battle of Stripe vs Braintree, the ‘winner’ ultimately depends on your business requirements and the type of business you have.So if you want to process a lot of international transactions, Stripe is a better option. On the other hand, if you want to deal with domestic payments, Braintree’s service of $50,000 fee-free will be helpful.However, if you already have a processor and want a gateway for your business, then go for Braintree. In case you are concerned with the matter of the dispute, go for Stripe as it will refund the chargeback fees if the dispute goes in your favor.Other than this, both providers offer similar types of services and lots of support for developers and integrations. However, many factors help to decide which gateway provider will perfectly fit your requirements. So, choose the gateway provider based on your business requirements.Want to Create a Custom eCommerce Solution?Want to discuss your mobile app idea? Want to get a free consultation? Book Your Free Consultation NowFrequently Asked QuestionsDoes PayPal own Braintree?Yes, PayPal acquired Braintree in 2013. Here is the logo of Braintree that states, “Braintree – A PayPal Service”.How long will it take to get a Braintree account?Some merchant accounts are created immediately after filling out the signup form. However, in some cases, the Braintree team needs to gather additional information before merchants can start processing. Also, in such cases, the team will contact you within one business day.Do customers also need a Stripe account to purchase from an online shop?No. Customers only require a valid credit card or debit card to purchase anything from your shop.ConclusionWe have shared almost every essential information that will help you to find the comparison between two top online payment processors – Braintree vs Stripe.We discussed the top 10 differences between Braintree and Stripe in detail. Also, we showed the similarities between Braintree and Stripe, so you know which factor you need to focus on. However, choosing a gateway entirely depends on the type of business you run and your business requirements.In case you want to use one of the gateways for your online business and face any challenge, contact our team of experts. Our app development team has experience in developing over 3500 iOS and Android apps using various technologies, such as Machine Learning and Blockchain.Also, have a look at some of the on-demand apps developed by our team. So far, we have developed over 50 on-demand applications.Glovo – Has over 30 million installs and received funding amount of $513M by over 28 investorsBevy – Covered by TechCrunch, The Huffington Post, The Guardian, and Yahoo FinanceLet us know if you want to connect with our team and discuss your requirements? We will be happy to guide you further.0Author BioJigar MistryDesignation: Vice President (Technologies) Jigar Mistry is Vice President (Technologies) at Space-O Technologies. He has 14+ years of experience in the web and mobile app development industry. He has expertise in different mobile app categories like health and fitness, eCommerce, and on-demand.