What is Stripe
WHAT IS STRIPE?
Stripe is a company that allows businesses of any size to accept payments and manage their business online.
It is used by companies such as:
Airtasker
Uber
Booking.com
Shopify
Amazon
Zoom
They have two head offices – one in San Francisco and one in Dublin but they also have offices in London, Paris, Singapore, Tokyo and a dozen others.
They were launched in 2011, have 4000 plus employees and millions of users all over the world.
WHAT DO THEY DO?
At the most basic level, they allow any business with a bank account to be able to accept online credit or debit card payments over the internet.
For U3A this means members with a credit or debit card can pay safely and securely for their membership, classes or for ticketed events online and for the money to be transferred usually within 24 hours into the U3A bank account.
HOW MUCH DOES STRIPE COST?
In Australia (when card is used online)
Stripe charges 1.7% on domestic credit/debit cards plus a 30c flag fall for each amount. Member Wizard adds an admin charge of .5%.
On a typical $50 membership fee the member would be paying $51.42 in total.
In Australia (when a terminal reader is used)
Stripe charges 1.7% on domestic credit/debit cards plus a 10c flag fall for each amount. Member Wizard adds an admin charge of .5%.
On a typical $50 membership fee the member would be paying $51.21 in total.
In New Zealand (when card is used online)
Stripe charges 2.65% on domestic credit/debit cards plus a $NZ .30c flag fall for each amount. Member Wizard adds an admin charge of .5%.
On a typical $50 membership fee the member would be paying $NZ51.88 in total.
In New Zealand (when a terminal reader is used)
Stripe charges 2.6% on domestic credit/debit cards plus a $NZ .05c flag fall for each amount. Member Wizard adds an admin charge of .5%.
On a typical $50 membership fee the member would be paying $NZ51.61 in total.
Alternatives to Stripe
If Organisations do not want to use Stripe then the alternative is Direct Deposit. You can also use Direct Deposit in conjunction with Stripe giving members two payment type options.
Who pays the Stripe fee?
The fees added on to the payment amount can be passed on to the member or organisations can choose to absorb the Stripe fee themselves. This will mean that the amount they receive will be less for those paying by card than those paying by any other method which is often not optimal. The calculation of fees is also slightly different in that circumstance also.
How do I connect my organisation to Stripe?
- If you already have a Stripe account, log into your Stripe dashboard then on another browser tab open your Member Wizard database, go to Settings/Member Payment details and check the box. Fill out the bank account you wish funds to be transferred into and if the member is to pay the Stripe fees check the box Member pays Stripe fees. Then click the blue Connect to Stripe button. The system will detect you are logged into Stripe and offer you a screen to select to connect your Stripe account.
- If you do not have an existing Stripe account, from Settings/Member Payment Details, check the box marked Credit/Debit card. Enter the bank account into which funds are to be transferred and then if you have opted to pass on the Stripe fees check the Member pays Stripe fees box. Click the blue Connect to Stripe button. You will be taken to the Stripe website and you will need to collect and enter the information in the Checklist below. This takes about 30 mins. The information required is contained in the Stripe Activation Checklist (see below).
- Once Stripe is connected to your account all Membership Renewals. Class payments and Invitations to Events will contain a link in them that members simply click on then provide their payment details. Member Wizard will automatically generate a receipt for the member and will send an email to any email address you nominate for the advice that money has been paid (this is optional).
- Depending on the payout frequency you select during setup, Stripe will automatically transfer the money, less their fees, down into your organisations nominated bank account. There is a small delay before the first payment is transferred which is part of Stripe’s money laundering check process which they need to complete first.
BENEFITS OF USING STRIPE
We have found that Member Wizard organisations who use Stripe (Council for the Aging in Northern Territory and Tenants Union Queensland and a large proportion of U3A clients for example) report better member retention as it makes it much easier for people to pay their membership as and when they receive their renewal notice. We have had absolutely no reports of any problems or issues with clients using it. Many organisations report that up to 70% of their members will use this method if you make it available and it cuts down considerably on the work of the Treasurer as all reporting and bank reconciliation is automatic.
Further information
For more details on Stripe their website is stripe.com
The following details what information you will need to connect your organisation to Stripe in Member Wizard.
STRIPE ACTIVATION CHECKLIST
You will require the following:
- Your business ABN
- Your registered Business Address and phone number
- The bank account number and BSB into which to receive Stripe payments
- Your Website address
- The names, home addresses, phone numbers/mobiles and date of birth for critical committee members – eg Treasurer, Secretary and President.
- Scanned front and back images of identifying documents such as a drivers licence for the above people - sometimes this is required and sometimes it is not (because you are effectively opening a new bank account and this is a banking requirement).
- The registered name, address and phone number of your business
- Your Incorporation or Association number if you have one
How popular is Stripe with Member Wizard Clients?
We integrated Stripe into Member Wizard in late 2022. Below is a graph showing the total of annual receipts created by Stripe through Member Wizard for the period 2023 to 2025 inclusive (to Nov 17, 2025).
