Understanding Stripe Payment Gateway (And Why It’s a Great Option for Membership Sites)
The Stripe payment gateway is a payment processor that lets your membership site accept cards, digital wallets and recurring payments online. It is a strong fit for membership sites because it charges subscriptions automatically, has no monthly fee on its standard plan, and keeps card data off your server.
If you own a membership site and want to monetize it, choosing the right payment method is a crucial step. Stripe is one of the most popular options: according to Stripe’s 2025 annual letter, businesses on Stripe generated $1.9 trillion in total volume in 2025, and Stripe powers more than 5 million businesses directly or via platforms. In February 2026, a tender offer valued the company at $159 billion.
What is it about Stripe that makes so many business owners opt for its payment processing services?
This article takes a closer look at the Stripe payment gateway, its main features and fees, and why it is a great option for membership sites.
What Is Stripe?
Stripe was founded in 2010 and is a SaaS (Software as a Service) payment processor that allows merchants to accept payments online. Stripe simplifies the process of making (and receiving) payments, enabling merchants to accept payments from customers around the world.
Essentially, Stripe is a payment gateway, an intermediary between you (the membership site owner selling courses, digital products, or access to a community, for example) and your members. Because Stripe processes and stores card details on its own certified infrastructure, your website doesn’t have to store card numbers, which makes things easier and more secure for everyone.
How Does Stripe Work?
At a high level, understanding how Stripe works is pretty easy:
- The member enters their card details in a secure Stripe payment form at your checkout.
- Stripe encrypts the details and sends the payment to the card network and the member’s bank.
- The bank approves or declines the payment, and Stripe sends the result back to your site.
- If the payment is approved, the member is charged and your membership site grants access.
- Stripe pays the money out to your bank account on your payout schedule, minus its fees.
Top Advantages of Using Stripe for Your Membership Site
There are multiple advantages to using the Stripe payment gateway for your membership site. Some of the most touted ones include:
Increased Security
Stripe has a number of security measures in place, including (but not limited to):
- PCI Service Provider Level 1 certification, the most stringent level in the payments industry, according to Stripe’s security documentation
- HTTPS and HSTS for secure connections (which prevents attackers from intercepting information)
- Sensitive data encryption (card numbers are encrypted at rest with AES-256)
- A vulnerability disclosure and reward program (which incentivizes security researchers to help keep Stripe’s platform safe)
- Single Sign-On and multi-factor authentication for your team’s Stripe Dashboard accounts
- Fraud detection (which helps to detect suspicious activity and prevent fraudulent transactions)
In other words, Stripe makes online payments secure both for consumers (i.e., your site’s members) and for you, the membership site owner.
Ease of Use
Stripe is extremely easy to use. In fact, you don’t need to be a coding whiz to set up your Stripe payment gateway. The Stripe dashboard is very straightforward, and connecting Stripe to your website usually takes a few clicks through a plugin.
As for the user’s end, you’ll be happy to learn that customers can pay easily, with just a few clicks, which creates a great user experience and helps you convert and retain more members in your community.
Flexibility
Stripe enables you to charge money in any way you want. Whether it’s through one-time payments, subscriptions or custom payment plans, Stripe makes it all possible. This way, regardless of the payment model you choose, you can rest assured that Stripe will be able to support your strategy.
Integration
The Stripe payment gateway integrates with a variety of applications, platforms, and tools (including WordPress, Shopify, Squarespace, form builders, e-commerce platforms, and more.) This means you don’t have to start from scratch. In addition, Stripe offers APIs and webhooks, which make it even easier for you to accept payments from your members, without having to do any heavy lifting.
Transparent Prices
Stripe’s pricing system is easy to understand, straightforward, and transparent. On the standard plan there are no setup fees, monthly fees, or hidden fees: you pay processing fees on successful transactions. As of October 2026, Stripe’s standard US pricing looks like this:
| Stripe fee (US, as of October 2026) | Rate |
|---|---|
| Domestic cards and digital wallets | 2.9% + $0.30 per successful payment |
| International cards | +1.5% |
| Currency conversion | +1% |
| ACH Direct Debit | 0.8%, capped at $5.00 |
| Stripe Billing (pay-as-you-go) | 0.7% of billing volume |
| Disputes | $15.00 per dispute, plus $15.00 if you contest it manually (refunded if you win) |
Rates differ by country and change over time, so check Stripe’s pricing page for your own country before you set your membership prices.
Disadvantages of Using the Stripe Payment Gateway for Your Membership Site
Using the Stripe payment gateway does have some disadvantages, and you should be aware of them. Generally, the benefits far outweigh these issues, but it’s still important to be mindful of the following:
The Fees
There is no monthly fee on Stripe’s standard plan, but every payment carries a fee. The fixed $0.30 part weighs more on small payments: on a $5 monthly membership, a domestic card payment costs about $0.45 in fees, close to 9% of the price, while on a $50 membership the fee is $1.75, or 3.5%. This is not a downside in itself, but it matters if you sell low-priced Memberships.
The Payment Options
The Stripe payment gateway offers a wide range of payment options, but it doesn’t cover everything. For instance, PayPal through Stripe is only available to Stripe accounts in supported European countries. If your members want to pay with PayPal or Venmo, you’ll usually add PayPal as a separate gateway, since PayPal’s own checkout offers both. To weigh the two, see this Stripe vs PayPal comparison for membership sites.
Technical Troubleshooting
Most times, integrating the Stripe payment gateway with your site is as easy as clicking a couple of buttons. However, sometimes, you may need the assistance of a developer. The good news is that Stripe has detailed developer documentation, and you can contact its support team from the Stripe Dashboard.
How to Accept Stripe Payments on Your Membership Site
One of the easiest ways to accept payments through the Stripe payment gateway on a WordPress membership site is with Ultimate Membership Pro. It works as a Stripe membership plugin for WordPress, and both of its Stripe integrations come with every plan.
Steps to Connect Stripe
At a high level, you will:
- Create a Stripe account, if you don’t have one yet.
- Install and activate Ultimate Membership Pro on your WordPress site.
- Turn on Stripe Connect and click the Connect with Stripe button, so there are no API keys to copy.
- Add the Stripe webhook for both Live and Test modes, so Memberships activate automatically (the webhook only works on a site that’s reachable from the internet, not a local install).
- Run a test payment in Test mode, then switch to Live mode.
The Stripe Connect setup guide walks you through every setting.
Stripe Connect or Stripe Checkout?
Both integrations take one-time and recurring payments, ongoing or for a set number of payments. The differences:
- Stripe Connect: members pay on your site without leaving it. It adds free trials or a different first payment, saved cards (stored by Stripe, not your site), card changes, refunds, and the option to pause or resume a subscription from your dashboard.
- Stripe Checkout: takes card payments with 3D Secure, which helps you meet Strong Customer Authentication (SCA) rules in Europe.
If you switch from Checkout to Connect later, existing subscriptions move to Connect at their next renewal. You can bill recurring Memberships every set number of days, weeks, months or years, and offer PayPal or other payment gateways next to Stripe.
Is the Stripe Payment Gateway Right for Your Membership Site?
Stripe is a go-to payment gateway for businesses of all sizes, and membership sites are no exception. It’s a powerful, cost-effective payment solution with plenty of features and integrations, and its interface is easy to use. The main trade-offs are the fixed per-payment fee on low-priced Memberships and the need for a separate gateway if your members want PayPal.
If you’re setting up payments on a WordPress membership site, Stripe is a strong default, and you can connect it straight from Ultimate Membership Pro. The plugin is sold as annual plans, which you can compare on the pricing page.
Frequently asked questions
How much does the Stripe payment gateway cost?
On Stripe’s standard US plan, as of October 2026, you pay 2.9% plus 30 cents per successful domestic card payment, with no setup or monthly fees. International cards add 1.5% and currency conversion adds 1%. Each dispute costs $15, plus $15 if you contest it manually (refunded if you win), and Stripe Billing adds 0.7% of billing volume if you use it to manage subscriptions.
Can Stripe handle recurring membership payments?
Yes. Stripe can charge members automatically every billing period, whether weekly, monthly or yearly. In Ultimate Membership Pro, both Stripe Connect and Stripe Checkout support recurring Memberships, ongoing or for a set number of payments, and Stripe Connect adds free trials, saved cards and the option to pause or resume a subscription.
Do I need a developer to set up Stripe on a WordPress membership site?
Usually not. With a membership plugin that integrates Stripe, you connect your account from the WordPress dashboard. In Ultimate Membership Pro, Stripe Connect uses a Connect with Stripe button, so you do not copy API keys by hand. You still add a webhook so Memberships activate automatically, and the webhook only works on a site that is reachable from the internet, not a local install.
Can members pay with PayPal through Stripe?
Only in some countries. PayPal through Stripe is available to Stripe accounts in supported European countries, such as Germany, France and the United Kingdom. If your business is in the US or elsewhere, add PayPal as a separate gateway. Ultimate Membership Pro lets you offer Stripe and PayPal side by side on the same membership site.
Is Stripe safe for a membership site?
Yes. Stripe is certified as a PCI Service Provider Level 1, the strictest level in the payments industry, and encrypts card numbers at rest with AES-256. With Stripe Connect in Ultimate Membership Pro, Stripe stores saved cards instead of your WordPress site, which reduces the security and compliance work on your side.
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