Stripe versus BOA PNC


This is a guest post written by Kendall Brown.

Stripe vs Large Entities

When it comes to processing and receiving payments for goods and services, Stripe is an up and coming company that has risen to the occasion. Starting in 2011, Stripe has rivaled Paypal in providing payment options online. Stripe has an easy user interface and allows both individuals and businesses to accept payments over the internet.


Stripe allows web developers to integrate payment processing into their websites without having to register for and maintain a merchant account. It has a flat fee of 2.9% of every transaction, plus an additional 30 cent per transaction. Stripe also has multiple payment options for customers, including debit/credit cards, Bitcoin, and Android and Apple Pay. It even has very fast transfers into your bank account, within two days of receiving payment. But how does Stripe stack up against major entities such as Bank of America’s Merchant Services, PNC Bank and others?

Bank of America:

In business, TIME IS MONEY. And while it is to be noted that Stripe has fast transfers into your bank account upon receipt of payment, it has a seven day waiting period for initial transactions, of which time it uses to profile the businesses involved to protect against potential fraud. That delay in processing the payment and receiving funds can have a damaging effect on your relationship with the purchaser, especially if you NEED the money to purchase the product and pay shipping fees to have it delivered from the purchaser.


Bank of America provides faster access to funds, as soon as the next business day. Having quick access to those funds is convenient as it allows you to make payments on time and keep record of your funds on a daily basis. By the next day, you’ll have access to the funds needed to purchase the product and have it sent out in a timely manner, thereby not negatively affecting your relationship with the purchaser.


Bank of America also has a tenure of 40 plus years of providing service to small businesses and major organizations. They have additional benefits and services not offered by Stripe. They provide a broader range of payment options such as electronic checks and gift cards. Credit and debit card payments can be processed through your mobile phone or tablet, and inventory can also be tracked and recorded through use of the removable clover station provided by Bank of America.

As an active user of Bank of America’s Merchant Services, clients qualify for a waiver on their Bank of America Business Advantage account. This convenience allows you to consolidate your banking and keep track of funds on their easy to use website. Additionally, Bank of America has 24/7 technical support so you never have to worry about your processing errors delaying your business from revenue. You also have one on one support from Merchant Specialists, with whom you can schedule an appointment to meet with or speak with online or in person. This allows you to handle your banking in your time while not interfering with your hours of operation.


The price you pay as a business owner to process credit and debit card payments is also very important. Unlike Stripe, which has a standard fee plus 30 cent per transaction, BOA will compete with other entities to ensure they are providing you a fair and moderate rate. Think about this, 2.9% of $200 is $5.80 plus the 30 cent brings it to $6.10 to simply process that transaction. Should the processing fee you pay really be based on how much someone pays for something? That’s quite a lot of money to pay per transaction if you are processing transactions for a store that sells high end or luxury items. Bank of America charges a processing fee of around $1.25 to $3.00 per transaction, based on your customer’s use of Visa, Mastercard or AMEX. This reduces expenses to the business and keeps more money in your pocket.


When it comes to price, PNC is one company that negotiates with you to ensure they obtain your business. They are often more willing to offer a lower price than other large entities. Their solutions enable you, unlike Stripe, to accept all types of payment transactions. Specialists are also available 24/7 to provide around-the-clock customer service. However, there is a delay in processing transactions as it may take up to three business days to process payments. While this is not as long as Stripe in initiating payments, it still is not as efficient as Bank of America’s Merchant Service payment processing.


Pros vs Cons.

When it comes to choosing a payment processing company, there are many advantages to each provider. For those who desire simplicity, Stripe has a very easy user interface allowing those not so tech savvy to use the service with little issues. Stripe is also a relatively new company with standard fees that you won’t have to worry about increasing to compete with competitors.

And remember, with Stripe, you won’t have to sign up for or maintain a merchant account to use the services provided. One of the disappointing aspects for Stripe users is the standard fee with no alternative negotiations. With the company being relatively small, there are limited payment options for customers, which can impact business. And the seven day waiting period for initiated payments can have a negative effect on the consistency of the business.

On the other hand, larger entities such as PNC Bank and Bank of America are better for business not only due to the additional features their payment processing devices yield, but also due to the tenure of experience they have. A 24/7 tech service department is invaluable to businesses that run 24/7 and rely on technology in person and online to be available to customers at all time. While PNC has most of the same services offered by Bank of America, it is imperative to note that the latter has a faster processing time.

Bank of America also provides fee waivers on their business accounts for active use of Merchant Services. PNC does not have such an offer at the moment and tends to take longer to process payments which as mentioned earlier can cause a delay with orders. Bank of America and PNC both negotiate with their clients and potential customers for their pricing fees to ensure they maintain your business and have dedicated specialists around the clock to assist you. Truly, larger entities tend to have many more benefits for choosing them as your merchant provider.

This should give you plenty of insight onto some of the benefits of viewing your options as well as the benefits of choosing larger entities like Bank of America Merchant Services to process your payments. If you have had success with others and feel there are better options, please feel free to comment below on your thoughts.


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