Stripe Terminal Card Reader Review

Pros

• Excellent developer tools
• Predictable flat-rate pricing
• Advanced reporting tools
• Ideal for international merchants
• Excellent marketplace tools
• Excellent subscription tools
• Multi-currency support

Cons

• Account stability issues
• No phone support
• Not suitable for high-risk industries

Overview

For a company as ambitious as Stripe, perhaps it was just a matter of time before it ventured outside of the friendly confines of online payment processing to the realm of brick and mortar payments. Stripe recently announced the launch of its newest offering, Terminal, currently still in beta. Once this brick and mortar POS system is live, the company hopes to reach an entirely new customer base.

Although Stripe insists it’s not in direct competition with Square, the processing and point of sale giant has certainly laid out an effective blueprint to follow. Like many of the top payment processors, Stripe has its issues. Fund holds, occasionally dodgy customer service, and issues with accepting what it deems to be high-risk payments routinely crop up in reviews. However, Stripe has a loyal following due in large part to its simple and competitive pricing structure and the company’s innovative mindset.

Square is our top developer-friendly card-present solution

It’s early days yet, but Stripe Terminal looks promising, although it will likely be a work in progress once the platform goes live. The company’s API has always been a strong selling point and its pricing structure and built-in customer base give it a solid leg up.

Availability

Currently, Stripe Terminal is in beta but you can petition to take it for a spin by answering just a few questions on the Stripe website. It may take a couple of weeks to finally get set up with the product to test it out but the company is responsive and seemingly pretty generous and eager to show off. Currently, you can only use Terminal on iOS devices, but an update for Android should be available in the coming weeks. Stripe Terminal is only available in the US at this time.

Features

Here are a few tidbits we know that Terminal will feature on its release:

• In-Person Card Payments: Obviously this is the big shift for Stripe, previously just an eCommerce payment processor. Stripe Terminal will be able to take credit and debit card payments with one of its two compatible readers. This will include NFC contactless payments as well.
• Custom Messaging: With its trademark customization options, Terminal will allow businesses to program what customers see on the screen. This will let the merchant offer coupons or provide additional information to customers.
• Access In-Person Machines Remotely: Business owners who choose Terminal will be able to make changes and adjustments to their processing system from a remote device with an internet connection. They will also be able to track sales across multiple channels.
• Integrate With Third-Party POS: Any company that is using Stripe payments with an existing point of sale system will be able to use it seamlessly assuming they also have compatible readers.

Compatible Hardware

You can integrate Stripe with your current point of sale system but you must use compatible card readers and, for that, Stripe has two options.

Stripe is partnered with Verifone and offers its P400 device for desktop systems which connects to a JavaScript application over a LAN connection.

Your other option is the Chipper 2x for mobile devices; this connects with your iOS system via a Bluetooth connection.

Negative Reviews & Complaints

Obviously, with the product still in beta, there aren’t really many (or, in fact, any) full-fledged reviews yet, but here are some of the issues customers have had with Stripe in general:

• Fund Holds: This is the biggest issue with companies like Stripe or Square. Despite improving in this area, complaints still abound. The biggest problem appears to be that the holds are often unpredictable and can leave a merchant in a bind. A business owner will receive a notice that their account is under review and, for a period of time, it won’t know when they will be able to access their funds.
• Customer Service: Reviews of Stripe’s customer service are hit or miss. While the company is generally responsive initially, when larger issues crop up (like the aforementioned fund holds), they can take a while to resolve the problem. During that process, representatives are said to become much more difficult to track down.
• Not User-Friendly: Stripe prides itself on its level of adaptability for developers. However, as a payment processor, it’s not the most functional option for the average Joe or Jane. If this less-than-intuitive approach carries over to Terminal, it’s obviously going to be a much bigger issue, especially if Stripe truly hopes to compete with the likes of Square or Clover, companies that thrive in the area of usability.

Positive Reviews & Testimonials

Again, the verdict is still out on Terminal, but Stripe does have a number of things going for it that customers generally appreciate:

• Competitive & Simple Pricing: Stripe’s processing fees are affordable and, perhaps even more importantly, simple to understand so you’re not going to get stuck with unexpected bills or hidden charges
• Freedom: Developers have extremely positive things to say about Stripe in general. They love that they have virtually free reign with the product and find it easy to use. This characteristic will hopefully translate to Terminal where an open API will give developers opportunities to create their own unique integrations.

Final Verdict

Stripe’s announcement about the new Terminal was a big one in the point of sale industry, but it wasn’t entirely unexpected. Given how quickly competitor Square has advanced just in the past year with the release of its standalone Square Register, it makes sense that Stripe would start its move into brick and mortar payments sooner than later.

What remains to be seen is if Terminal will provide Square with a true rival. It already has plenty going for it with its built-in, highly-rated processing system and a commitment to adapt and grow in a competitive market. We’re looking forward to giving Terminal a full and comprehensive look once it’s officially launched.

Another look at Square

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