Introducing direct payments by credit and debit card on Folksy

Buyers using Folksy have, until now, had only one payment option: PayPal. We're now introducing an alternative alongside PayPal, which offers buyers the ability to pay by credit or debit card. If you would like your customers to be offered the option to pay by credit or debit card, you will need to have a Stripe account.

Once you have a Stripe account, link it to your Folksy shop. To do this follow the instructions on your shop dashboard.

PLEASE NOTE: The card payments work is nearing completion and will be released very soon. Please ensure you are connected with Stripe to take full advantage when it goes live.


Why are we introducing a new payment system?

It will make checking out much simpler, easier and quicker for customers. There are fewer steps involved and it's a much better experience on mobile. 

Your customers will be able to pay with all major credit and debit cards. They won’t need to navigate away to another website and they won’t need to set up an account with any other services.

We believe that offering direct payments will increase conversion and you’ll get more sales as a result. Other sites who have introduced card payments through Stripe have reported that the majority of customers are choosing to pay directly by card.

Stripe's processing fees are really low.

Feedback we have received has shown some buyers prefer not to use PayPal, or are unable to pay with their card through PayPal. By introducing card payments through Stripe, we are offering these customers an alternative way to pay.


What is Stripe?

Stripe is a quick and secure way for Folksy sellers to accept credit and debit card payments from customers all across the world. Stripe handles billions of transactions every year and is used by Kickstarter, Asos, Spotify and Facebook, among others.

Buyers only need their normal debit or credit card and do not need to create a Stripe account.

Stripe will be integrated with Folksy so all payments can be processed on our site rather than taking customers off to another site to pay. It will not ask a customer to sign in or open an account in order to pay. This should make the checkout process smoother for customers, and therefore reduce drop-out rate and basket abandonment.


How does it work?

Stripe processes all major credit and debit cards, including Visa, Mastercard and American Express.

When a customer pays by card, that payment will go into your Stripe account. These payments can then be transferred to your bank account and you can set the timescale for transfers in your Stripe account.

You can view all payments and transfers on your Stripe dashboard. Your Stripe Dashboard is also where you can organise refunds, view all transactions, see your customers and manage your account.

There is an introductory video showing how to use your Stripe dashboard here. Don't worry, you don't need to know everything covered and some of the information won't be relevant for you, but it's a useful way to get to know your Stripe dashboard and available features.   

Folksy commission (+VAT) will be charged automatically at the point of sale, rather than billed monthly, on all orders paid through Stripe. This should make the process easier and more managable for sellers. Monthly bills will still be issued for listing fees and any Paypal sales. You will be able to see a monthly breakdown of all your sales, fees and bills in your Folksy shop. 


Fees

Like Paypal, Stripe will charge Folksy sellers a fixed fee and a percentage of the transaction. The price is the same for all debit and credit cards. You don’t pay anything for failed charges.

Stripe transaction fee:
1.4% + 20p for transactions on European cards
2.9% + 20p for non-European cards

Paypal transaction fee:
3.4% + 20p of the amount you receive.


Security & fraud protection

Stripe has been audited by an independent PCI Qualified Security Assessor (QSA) and is certified as a PCI Level 1 Service Provider. This is the most stringent level of certification available in the payments industry. Read more here https://stripe.com/docs/security/stripe

Stripe has inbuilt fraud protection technology. Read more about that here https://stripe.com/docs/disputes/prevention


Connect your Folksy shop to Stripe

You will be able to connect your Folksy shop to Stripe from your Folksy shop dashboard. When this has been enabled for your shop, you will see a prompt when you log in on your Folksy dashboard page.


FAQ

I already have a Stripe account, how do I connect that to my Folksy shop? You can connect your Folksy shop to your existing Stripe account directly from your Folksy dashboard - https://folksy.com/dashboard/shopfront/card-payments.

I have connected my Folksy shop to Stripe. When will my customers be able to pay directly by card? The card payment work is nearing completion and will be available for customers very soon.

I have Stripe enabled. Why wasn’t the buyer offered it when ordering an item from me? Shoppers will only be offered the option to pay by card if all the sellers in their basket (ie all the sellers they are buying from) have signed up to a Stripe account. If one of the sellers has not enabled card payments for their Folksy shop, the customer will only see the option to pay by Paypal.

What will the customer see at checkout?
The customer will see one of two options:
  • If all the shops in the customer's basket have enabled Stripe payments, then customer will be given the option to either ‘pay by card’ or ‘pay by PayPal’. 
  • If one of the sellers in a customer’s basket hasn’t connected their shop to Stripe, then the buyer will only see the option to checkout with PayPal. 
Note: The 'pay by card' option is Folksy-branded and does not reference Stripe so they will not need to be familiar with Stripe as the service provider.


Why does Stripe need permission to debit my bank account?
When you issue a refund or receive a chargeback through Stripe the money will be taken from your Stripe balance. If there isn't enough money in your Stripe account to cover the refund (i.e. if the funds have been withdrawn to your bank account), the balance will be paid from your linked bank account. This is the same way that refunds and chargebacks are processed on PayPal.

More info:
https://support.stripe.com/questions/what-happens-when-i-have-a-negative-balance

Will I be able to see all the transactions through both Stripe and Paypal on Folksy?
Yes, there will be a monthly breakdown of all your orders and fees on Folksy, including fees for sales through Stripe and Paypal.

How long will it take before I can get my money from Stripe once an order has been paid?
Your first payout from Stripe will be made 7-10 days after your first successful order through Stripe. After that, your money will be transferred to your bank account every day or as regularly as you tell it to in your Stripe settings – set the payout schedule on your Stripe dashboard here https://dashboard.stripe.com/account/payouts 

How will refunds work?
You can issue both full and partial refunds in the Payments section of your Stripe dashboard - find out how to refund a customer on your dashboard here https://stripe.com/docs/refunds.

The process for cancelling a paid order in your Folksy shop will be the same - see this article https://folksy.uservoice.com/knowledgebase/articles/58083-how-do-i-cancel-or-refund-a-customer-s-order.

Shoppers can already pay by card using the guest checkout option on Paypal. Why do they need an alternative payment option?
Although Paypal should allow customers to pay by card without setting up a Paypal account, we have had reports that not all customers are being offered this option. The number of times a customer can checkout as a guest before having to register with PayPal is also limited. This applies web-wide not just to Folksy. The new payment system we are implementing with Stripe ensures that customers who wish to pay by card are given that option.

Is signing up to Stripe compulsory?
No. Folksy sellers do not currently need to have a Stripe account to sell on Folksy, but we do want to make it as easy as we can for customers to buy your work, so we would encourage you to enable direct payments in your shop.

If you have any specific questions about Stripe or your Stripe account not covered here, contact the Stripe Support team.


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