Been waiting for this a long time. Stripe is finally here in Malaysia for someone like me. As in you can actually use it and not just for beta testers or owners of a large site.
I just activated my account.
All you need to do is to click “Activate Account” and answer a few simple questions.
Details are the usual full name, address, NRIC, bank account, business name etc.
Click submit and you are good to go.
Having used Paypal for years, I hope the fees and exchange rates are better with Stripe.
Difference between Paypal and Stripe
With Paypal at the moment, money is kept at Paypal until I want to withdraw it to my bank account in Malaysia. With Stripe payment though, the money goes directly into my bank account.
Not exactly immediately but within a few days. You can set when the money will be transferred into your bank account whether daily, weekly, monthly or even manually.
Useful in case you need to refund someone if you have money back guarantee of some sort.
Pros and cons?
With the exchange rate fluctuating as it is, there may be advantages to holding the money in Paypal until the rate is more favorable. I also keep some money in Paypal for online purchases like web hosting, etc. which is usually in US dollars.
That way, I reduce transaction and exchange fees twice from USD to MYR and back to USD.
So there are still some advantage to using Paypal.
However that would also depend on the exchange rate and fees on Paypal vs Stripe. Paypal exchange rate to MYR is rather bad all this while.
Will need to monitor and see.
By the way make sure you activate TFA, or two factor authentication when you sign up.
I had some initial problems with Stripe since I used a platform that hooks up to Stripe to process the payment.
Any how it was solved and here’s the first test payment.
Got to test things out right?
And here are some from customers.
Here are my observations. after a few transactions. This is for people in MY with international transactions.
The Stripe fee is 3.4% + RM 2 flat rate and then approx 6% tax added to the fees. However Stripe converts whatever currency to MYR first then applies the fees.
For Paypal, the fees are 4.4%+ USD 0.30. Only when you withdraw the currency conversion fee is applied. So you may get more or less favorable rates.
For local transaction the fee for Paypal is 3.9% + RM 2 and remains the same for Stripe at 3.4% + RM2. Not sure if there is any tax added via Paypal to this though.
A fee of RM 3 is charged by Paypal on top of the conversion fee is your withdrawal is less then RM 400.
Do note the Paypal has a fee schedule and as your monthly transactions increase, the fees decrease. So it depends.
Overall I reckon Stripe fees are a bit lower compared to Paypal at least for international transactions when your volume of sales is less than RM 12,000 per month based on the fee schedule.