Is Stripe a Secure Payment Method? [Synder Guide] (2024)

Like Square and PayPal, Stripe is a payment-processing platform that offers users an affordable online transaction tool with several customization options. Like any new system, it might take a little time to master Stripe. But once you get used to the platform, you’ll find that the secure Stripe payment integration for accounting is very straightforward and has an easy-to-navigate user interface.

If you run an e-commerce business, you can use Shopify payments by Stripe for online credit card payments and trade with other global companies. The platform supports currency conversion and is available in forty-seven countries.

Like any responsible business owner, you’ll still want to get an answer to the question: “How secure is Stripe?”.

Get ahead of the competition:
Secure your Stripe guide today! 📈

Discover best practices, and uncover hidden strategies that will empower your business to maximize revenue and minimize payment-related headaches. Download our guide now!

Contents:

1. Is Stripe safe and does it ensure a secure payment process?

2. How secure is the Stripe payment platform?

3. Does Stripe have FDIC insurance?

4. Does Stripe require my SSN?

Is Stripe safe and does it ensure a secure payment process?

Many e-commerce business owners often express concern with online payment-processing platforms. In addition to knowing how to add Stripe to Shopify, you want your customers to feel comfortable and confident that when they make purchases on your online store their financial information is secure. Without this level of trust and guaranteed security, the services of a payment processor are worthless.

There are a number of well-known companies and brands that currently use Stripe. While this is a good indicator that Stripe is a reputable and safe platform, it’s still vital to do some research to be sure.

How secure is the Stripe payment platform?

When it comes to security, Stripe has implemented several measures to ensure high safety of transactions and protect sensitive customer information. Here are some key aspects that contribute to the security of the Stripe payment platform.

1. Stripe is PCI-DSS compliant

Stripe is certified as a Level 1 Service Provider, which is the highest level of certification for payment processors. Stripe complies with the Payment Card Industry Data Security Standard (PCI-DSS), a set of security standards established by major card brands like Visa, Mastercard, and American Express. This compliance ensures that Stripe maintains a secure environment for handling credit card data.

2. Stripe uses data encryption

Stripe employs strong encryption methods to safeguard data transmission. All communication between customers, businesses, and Stripe servers is encrypted using industry-standard TLS (Transport Layer Security) encryption. This ensures that sensitive data processed by Stripe, such as credit card details, are securely transmitted over the internet.

3. Stripe utilizes tokenization

Stripe uses tokenization to enhance security. When a customer makes a payment, their credit card information is replaced with a unique token. This token is used by Stripe for subsequent transactions, eliminating the need to store sensitive card details on the merchant’s servers. As a result, even if a merchant’s systems are compromised, the tokenized data alone is useless to potential attackers.

4. Stripe employs two-factor authentication (2FA)

Stripe offers the option of enabling two-factor authentication for account access. This adds a high degree of security by requiring users to provide a second form of verification, such as a unique code sent to their mobile device, in addition to their regular login credentials.

5. Stripe ensures fraud prevention

Stripe’s advanced machine learning algorithms detect and prevent fraudulent activities. Using these algorithms, Stripe analyzes various data points, such as transaction patterns, IP addresses, and user behavior, to identify suspicious transactions and mitigate potential risks. Additionally, Stripe provides tools and features that allow businesses to implement customized fraud prevention rules and measures.

6. Stripe performs security audits and monitoring

Stripe performs regular security audits and assessments to identify and address potential vulnerabilities. The company has a dedicated team of security experts who continuously monitor the platform for any suspicious activities or threats. This proactive approach helps ensure the ongoing security of the payment platform.

Read our guide to learn about Stripe Fees.

7. Stripe follows compliance and regulatory standards

To guarantee your business’ safety, Stripe adheres to various compliance requirements, including GDPR (General Data Protection Regulation) in Europe and other applicable data protection laws. By complying with these regulations, Stripe ensures the protection of personal data and privacy for its customers.

While Stripe is very secure as it implements robust security measures, it’s important to remember that Stripe is not safe as a long-term payment processing solution all the time, so businesses should also take necessary precautions on their end. This includes maintaining secure servers, implementing proper access controls, and following recommended security practices when integrating Stripe into their websites or applications.

Check out our article about Stripe vs Square comparison!

Does Stripe have FDIC insurance?

A business that uses Stripe can set up an account that is Federal Deposit Insurance Corporation (FDIC) insured, something particularly important in the online payment platform world. If something goes wrong, your business is protected for up to $250,000 and won’t have to go into capital reserves to make certain payments.

For instance, in the unlikely event that Stripe goes out of business, you won’t run any risk as the FDIC will reimburse you for the amount up to $250,000 you lost.

Does Stripe require my SSN?

To comply with current legal parameters regulating the online payment sector, Stripe users must provide their Social Security Number (SSN) to verify their identity. It’s similar to the process of submitting a voided check to an employer to verify your account for automatic deposit.

Stripe also requires your SSN to establish that you can act on behalf of your business. This wise step helps Stripe weed out scammers and identify fraud attempts, which are ongoing problems for online companies.

In summary

When customers make purchases using cash or check, their payments can be deposited into your business’ bank account. On the other hand, if they want to pay for products or services using credit cards, customers need a trustworthy payment processing platform like Stripe to facilitate these electronic transactions.

So can merchants and buyers be sure that Stripe works safely with their money? In short, yes. Stripe is a reliable and secure platform that allows e-commerce businesses to accept and process electronic payments via credit and debit cards, mobile wallets, ‘buy now, pay later’ platforms. If you want to use Stripe for in-person payments, the platform offers a point-of-sale system called “Stripe Terminal.” Both electronic and in-person transactions with Stripe are safe.

Are you an e-commerce business using Stripe as your payment gateway? Are you an accountant or a bookkeeper for an e-commerce store? Automate your daily sales data sync with Synder – a cloud-based accounting software for transferring sales information to your books. Synder takes all transaction details from the integrated e-commerce platforms, payment processors and/or POS systems, and transfers them to your accounting software, ensuring safety and accuracy of this synchronization process.

Want to learn more about Synder’s functionality? Hop on a 15-day free trial with no commitment or credit card required, or book office hours for an online guided tour with a support specialist.