A Comprehensive Guide to Opening a Stripe Account in South Africa

If you’re wondering whether Stripe is available in South Africa and how to open a Stripe account for your online business, you’ve come to the right place. While Stripe is not fully supported in South Africa, there is a legal way to use it in non-supported countries.

Stripe is the leading payment gateway that enables businesses to receive and process online payments from customers worldwide. Whether you have an eCommerce website, booking service, or subscription-based business, Stripe offers a hassle-free payment processing solution. You can also your transaction history on Stripe.

Although Stripe itself is free to use, it does charge a fee of 2.9% plus $0.30 for each successful transaction. However, you can easily include this fee in your product prices and effectively use the service for free.

Now, let’s delve into how you can use Stripe in South Africa and set up a Stripe account without any hassle.

Why Choose Stripe as Your Payment Gateway?

Having tried various payment gateways, I found Stripe to be the most user-friendly, easy to integrate with other tools, and simple to maintain due to its sophisticated API. If you want to receive online payments effortlessly, Stripe is your go-to option.

Also read: 10+ Apps/Sites That Pay You Real Money In South Africa

Here are some of the benefits of using Stripe as your payment gateway:

  • Recurring Payments: Set up automatic recurring payments on your website, allowing you to bill customers monthly or yearly.
  • Delayed Payment: Offer customers a few days of free service before billing them by setting up delayed payments. This is particularly useful for businesses offering free trials.
  • Discounts & Coupon Codes: Easily create and manage coupons and discount codes for your customers, helping you run promotional campaigns.
  • Subscription Payments: Accept recurring subscription payments from your customers, providing them with a seamless subscription experience.
  • Pro-rata Charges: Charge customers only for the portion of your service they’ve used, rather than the full amount.
  • Rebill without Storing Credit Card Details: Stripe allows you to rebill customers without storing their credit card details, ensuring secure transactions.
  • Affordable Pricing: Stripe offers a flexible pricing fee of 2.9% plus $0.30 per successful payment, making it a cost-effective choice.
  • Excellent Reminder System: Benefit from an effective reminder system to ensure timely payments from your customers.
  • No Refund Fees: Stripe doesn’t charge any fees for processing refunds, enhancing customer satisfaction.
  • Informative Interface: The intuitive interface of graphs and charts makes data comprehensible and clear, facilitating better analysis and decision-making.
  • Seamless Checkout Experience: Stripe provides a smooth checkout experience, leading to increased conversion rates.

Requirements to Open a Stripe Account in South Africa

To set up a Stripe account legally in South Africa without facing any future issues, you’ll need the following:

  • A Business Formation in the US (LLC): Establish a Limited Liability Company (LLC) in the United States, which will serve as your business entity.
  • EIN or Tax ID (Employer Identification Number): Obtain an EIN or Tax ID for your business. This identification number is necessary for tax purposes.
  • Personal US Physical Address: Provide a US physical address where your business documents can be sent. You can use services like physicaladdress.com, virtualpostmail.com, or shipito.com to acquire a US address.
  • US Phone Number: Have a US phone number for communication purposes. You can obtain a free US number through apps like TextPlus or opt for a more reliable paid app like DingTone.
  • US Bank Account: Open a US bank account to facilitate transactions. Payoneer is a convenient option for non-US residents, as it provides a virtual US bank account.

Setting Up an LLC for Your Business in the US

To establish an LLC for your business in the US, you can follow these steps:

  • Research State Requirements: Each state in the US has its own regulations for forming an LLC. Research the requirements of the state where you plan to register your LLC. Some popular choices for non-US residents are Delaware, Wyoming, and Nevada.
  • Choose a Registered Agent: A registered agent is an individual or entity that will receive legal and tax documents on behalf of your LLC. You can hire a registered agent service or appoint someone you trust who resides in the chosen state.
  • Name Your LLC: Select a unique name for your LLC that complies with the naming rules of the state. The name should include “LLC” or a similar designation to indicate its limited liability status.
  • File Articles of Organization: Prepare and file the Articles of Organization with the Secretary of State in the chosen state. This document includes essential information about your LLC, such as its name, registered agent, and business purpose.
  • Obtain an EIN: Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is necessary for tax purposes and to open a US bank account.
  • Operating Agreement: While not required in all states, it’s advisable to create an Operating Agreement. This document outlines the ownership and management structure of your LLC and helps prevent misunderstandings in the future.
  • Fulfill Additional State Requirements: Some states may have additional requirements, such as publication requirements or annual reporting. Make sure to comply with these requirements to maintain your LLC’s good standing.

Obtaining an EIN and Setting Up a US Bank Account

After forming your LLC, you’ll need to obtain an EIN and set up a US bank account. Here’s how:

1. Apply for an EIN: You can apply for an EIN online through the IRS website. Follow the instructions provided and complete the application. Once approved, you’ll receive your EIN immediately.

2. Choose a US Bank: Research US banks that offer accounts for non-US residents. Payoneer is a popular option as it provides virtual US bank accounts, which can be accessed online.

3. Provide Required Documentation: The bank will require specific documentation to open an account. This typically includes your LLC formation documents, EIN, personal identification (such as a passport), and proof of address (such as a utility bill or bank statement).

4. Complete the Application: Fill out the bank’s application form, providing accurate information about your LLC and its owners. You may also need to provide details about your business activities and expected transaction volumes.

5. Review and Approval: The bank will review your application and documentation. Once approved, you’ll receive your US bank account details, including an account number and routing number.

Using Stripe with Your US-based LLC

Now that you have your US-based LLC and a US bank account, you can proceed to set up a Stripe account and start accepting payments. Follow these steps:

1. Visit the Stripe Website: Go to the official Stripe website (stripe.com) and sign up for an account. Provide the required information, including your email address and a secure password.

2. Verify Your Email: After signing up, you’ll receive an email from Stripe to verify your email address. Click on the verification link provided in the email.

3. Provide Business Information: Fill in the necessary details about your business, including its name, address (use your US address), and phone number (use your US phone number).

4. Connect Your US Bank Account: In the Stripe dashboard, navigate to the “Payouts” section and click on “Add Bank Account.” Follow the prompts to connect your US bank account to Stripe.

5. Configure Payment Settings: Set up your payment settings in Stripe, including the currencies you want to accept, your pricing structure, and any additional features you require (such as subscriptions or recurring payments).

6. Integrate Stripe with Your Website or App: Stripe provides developer-friendly APIs and plugins for popular e-commerce platforms. Choose the integration method that suits your needs and follow the provided documentation to connect Stripe to your website or app.

7. Test and Launch: Before going live, thoroughly test your payment integration to ensure it works smoothly. Process test transactions to verify that payments are being captured correctly.

Remember to comply with all applicable laws and regulations, including tax requirements and any relevant financial regulations, to ensure your business operates legally and successfully in the US.

  • Monitor and Manage Transactions: Once your Stripe account is set up and live, regularly monitor and manage your transactions. Keep track of payments received, refunds issued, and any disputes or chargebacks that may occur. Stripe provides tools and reports to help you manage your payments effectively.
  • Stay Updated with Stripe’s Policies: Stripe may update its policies and guidelines from time to time. Stay informed about any changes and ensure your business practices align with Stripe’s terms of service and acceptable use policy. This helps maintain a healthy and compliant relationship with Stripe.
  • Customer Support and Assistance: If you encounter any issues or have questions regarding your Stripe account or payment processing, reach out to Stripe’s customer support team. They can provide guidance, assistance, and troubleshooting to resolve any problems you may face.
  • Stay Informed About US Regulations: As a business operating in the US, it’s important to stay informed about relevant regulations, tax obligations, and compliance requirements. This includes understanding sales tax obligations, reporting requirements, and any industry-specific regulations that may apply to your business.
  • Seek Professional Advice: If you’re unsure about any aspect of setting up an LLC, obtaining an EIN, opening a US bank account, or using Stripe, consider seeking professional advice. An attorney, accountant, or business consultant with expertise in US business regulations can provide valuable guidance tailored to your specific situation.

By following these steps and diligently managing your LLC, US bank account, and Stripe account, you can effectively operate your business, accept payments, and provide a seamless payment experience to your customers.