Using Stripe In Pakistan
With globalization and freelancing getting more evident in the world, online payments have become a common path, but there are some leggings in the online payment world. For optimizing online payments, multiple platforms are used, and Stripe is actually one of the most frequently used and trusted payment gateway. That’s to say because Stripe has become an ultimate platform for optimizing business transactions.
Truth be told, receiving and sending funds from individuals has become a complicated arena, while Stripe is making it easier for users to optimize transactions. In addition to this, people selling through Shopify, Amazon, and other eCommerce platforms require a proper transaction platform, and having a Stripe account can help. In addition to offering quick payments, Stripe provides multiple discount coupons and bonuses on a bigger transaction.
On top of everything, Stripe provides greater insight into the finances with the help of charts and graphs. Stripe is currently working in over thirty countries, but unfortunately, Pakistan is not on the list. It’s always been a sad matter for the businesses, but that isn’t the issue anymore because we have the instructions available in the market. With this article, we are sharing how you can use Stripe in Pakistan without exploiting or breaking the laws. So, shall we move forward?
The Basic Guidelines For Setting Up The Stripe Account
When you are trying to set up a Stripe account from Pakistan, it’s completely possible if you are only fulfilling a bunch of requirements or criteria. Sure, Stripe isn’t available in Pakistan, which means you need access to the legal presence in the country from where you are creating the account on Stripe. For this purpose, some of the best options are the U.K. and the U.S. since there are various legal benefits adhered to it. For creating the Stripe account, you need to have the following information at hand;
● Tax ID number or EIN
● Company in the U.K. or U.S.
● Bank account in the U.K. or the U.S.
● The virtual contact number for the U.S. and the U.K.
● The virtual address in the U.K. or the U.S.
For accepting international payments, you need to have a business with an international presence (the business must be registered and operating). That being said, if you are running a business on eCommerce platforms, such as Amazon, you can easily create a bank account in the related country and acquire the EIN. That being said, once you have the business, you can move ahead with the steps that we are going to share below!
The Step-By-Step Guide For Creating Stripe Account From Pakistan
In the section below, we are sharing the step-by-step guide to creating the Stripe account. This is a complete guide but make sure that you follow the steps accurately to ensure the account is approved.
Step Number One – Selecting The State
To begin with, step number one is all about selecting the state from which you need to create the Stripe account. Primarily, you can apply from any of the thirty countries, but it’s essential to choose the country that has the least legal limitations. For that purpose, you can either choose the U.S. or the U.K.
Step Number Two – Going With The Flow
Once you have selected the country, you need to open the register tab on the Stripe website. You can directly open the page by clicking on this link. When you open this register tab, add in the essential information in the blocks to create the account.
Step Number Three – Activating The Account
When you have added the information on the registration page, you need to activate the account. For that purpose, check the performance tab and set it to live (it will be currently on the test). When you change the setting, the popup will appear, and confirming the action will start the process of setting up the account.
Step Number Four – Entering The Business Details
Now that the account activation has been initiated, you need to enter the business details. In particular, you need to use the business details from the business that you have opened in the U.K. or the U.S. To illustrate, you will need to provide the business address and additional details, including the following;
● Specify the type of the business
● Add the employer identification number (EIN), but it’s optional
● The business website
● The business description (what your business is about)
Step Number Five – Adding The Bank Information & Credit Card Statement
Now that you have added the business information, you will need to add the bank details and credit card statement. The first step will be adding the credit card information, and the next step will be adding details about the bank account. It’s particularly required by the U.S. and the U.K. bank account (if you hired the intermediator to register the business, you can get these details from them).
Step Number Six – Verification
In the next step, the account information will be first verified by the officials at Stripe. They are highly likely to verify the contact number and address that you entered while registering the account. Keep in mind that the business address and contact number will need to be from the U.K. or the U.S. In addition to this, this application submission and receiving the API keys is likely to take some time (a few days). Once that’s done, the account will be activated for you.
At this point, we do want to mention that creating new bank accounts in the U.S. has been restricted, which is why it’s better to apply from the U.K. The best thing about submitting the Stripe account application from the U.K. is that it will take less time and will be suitable if you want to have the quickest access to the Stripe account. To illustrate, getting the Stripe account approved from the U.S. will consume about two months, while the U.K. will take only seven to fourteen days.
The Required Information
Whenever you have to create the Stripe account, there is a bunch of information that you will need to provide, including the following that we have mentioned below;
● The company name (you can check out the list of available names on the website)
● The physical address (it doesn’t necessarily have to be the U.S. address but keep in mind that you cannot use the virtual mailbox, mail forwarding address, or P.O. box)
● The contact number
● The number of stocks, shares, and/or units of ownership in the business
On the other hand, if you are using your current company to create a new business as a subsidiary, you need to provide the business entity type, legal name, the tax I.D. number, and the government-based registration certification. Some of them might also ask for the business products and services because Stripe will review what your business is selling or will sell in the future. In addition, you will need to provide the information of product or service charges and the business terms of service. On the other hand, if your business website is still under development, wireframes, screenshots, and an elaborated description will be asked for outlining the business.
On top of everything, they will ask for information about the workforce listed in the business. For every person, you need to provide their legal name, email address, physical address, date of birth, ownership or designation in the company, and identification document. They might even ask for the EIN to determine if the business fits the following criteria;
● You don’t own a highway motor vehicle weighing more than 55,000 pounds
● You don’t need to file form 720 (this form is for the quarterly federal excise tax return)
● You don’t have the employees who are likely to receive the Form W-2 in the next year (twelve months)
● You don’t participate in wagering and gambling
● You don’t manufacture or sell firearms, tobacco, and alcohol
● You aren’t married to some member of the company if the company is operating as LLC and have two members
Why You Must Use Stripes In Pakistan?
There is a wide range of payment gateways available in Pakistan for receiving and processing online payment, but most of them are extremely time-consuming and complicated. On the other hand, Stripe is a promising choice since it’s convenient to set up and can be integrated with other tools. Also, Stripe has easier maintenance since the API is extremely sophisticated. In the section below, we are adding more benefits of using Stripe as your primary payment gateway;
● Stripe can be set up for optimizing and automating the recurring payments on the website. For this purpose, you can bill the customers automatically, depending on the subscription basis
● The users can set up the delayed payments by offering a few days to ensure your customers are getting some extra days to enjoy the service before they are billed (it’s perfect if you are offering free trials)
● It allows the users to set up discount codes and coupons for the customers. It’s actually great for businesses that regularly offer promotions
● It allows the businesses to receive monthly or annual subscription charges from the subscribers or customers
● It allows the businesses to charge the pro-rata charges, so you can charge them for the number of days they have used the service rather than a full amount
● It allows the businesses to rebill the subscribers or customers without saving their credit card information to ensure a secure experience
● The pricing charges are extremely reasonable
At this point, it wouldn’t be wrong to say that Stripe is a direct competition of PayPal when it comes down to catering to online businesses and their customers. Sure, the service is available in limited countries, but the payments are accepted from every source. One evident benefit of Stripe is the precise and clear fees (they charge 2.9% and thirty cents on every transaction made from the account), promising zero hidden charges. Even more, they have a self-hosted checkout process.
The self-hosted checkout process means that the entire payment process occurs on the website of the business owner as compared to PayPal, which directs customers to a third-party platform. The self-hosted model helps a great deal in saving businesses from monthly charges. Another great benefit of using Stripe is its connectivity with bank account deposits. For instance, if someone uses Stripe to pay for products, the Stripe network will get on the job to deposit funds to the external bank account (it’s a fully automated process).
That being said, the manual transfers will be eliminated, and it saves so much time for the businesses since it’s a constant hassle for them to manage the transactions. In addition to these evident benefits, Stripe also has a great reminder system, so you can be ahead of the payments, and they don’t even charge the refund fees. Also, the checkout experience is extremely streamlined, resulting in better conversions.
Get In Touch With Bizvee
If you are planning on registering and operating the business in different countries, including the U.K. and the US, Bizvee can help. Bizvee is a well-known business and accountancy consultancy firm. They have more than 100 years of combined experience in different industries, and have worked with small businesses and startups, they can handle all your needs and provide the best solutions to ensure your business operations are streamlined and accounts are handled optimally.
On top of everything, Bizvee has sufficient experience in handling the financial challenges of their clients, and if you are having issues with setting up Stripe in Pakistan, having their assistance will yield promising results. Not to forget, they have a readily available team that works around the clock to create business solutions, and the overall working process is fast enough to get your business in order within the tightest timeframes.
The Bottom Line
So, this is all you need to know about using Stripe in Pakistan. Honestly, it only works if you have a business running in the U.S. or the U.K., and if you don’t have one already, register a business to have access to a Stripe account!