July 21, 2016 16 Comments

A war has erupted on the Australian online payments scene

The incumbents will tell you that they welcome the competition but have no doubt, it's game on. 

Let's compare Stripe vs eWay and work out what's the best fit for your ecommerce business.

Stripe officially landed on our shores in 2014 after months of beta testing, promising easy set up, multi-currency support, strong payments reporting and beautiful checkout experiences.

eWay - the Aussie online payments powerhouse that processes payments for a the majority of the stores that you shop, came out and questioned Stripe's image of innovation, claiming to have been offering many of the same features for years.

With the battle emerging, we've evaluated how each platform compares

Stripe is positioning itself as the developers choice, giving them the documentation and frameworks to make their own checkout experiences rather than the out-of-the-box solutions that most checkout flows end up as. Meanwhile, eWay is focusing on support and fraud protection, both areas that we've seen eWay handle quite well.

Stripe vs eWay comparison (updated 21/7/2016)

eWAY eWAY (+ bank) Stripe
Settlement

Same Day or Next Business Day*

Same Day or Next Business Day*

*UPDATE* - Held for 2 days
Monthly fees

No setup or monthly fees

No setup or monthly fees

No setup or monthly fees
Transaction fees

2.6% Per Transaction (All cards included - domestic & international)

60 cents per transaction - volume discounts available

Domestic: 1.75% of transaction + 30c per transactionInternational: 2.9% of transaction + 30c per transaction
Refund fees

Your cost per transaction (e.g. 30cents)

Your cost per transaction (e.g. 60cents)

No refund costs + they'll refund original charge fees
Disputes Handled by the bank Handled by the bank $25 fee for chargebacks. If resolved in your favour, the fee is refunded
Subscription billing Yes

Yes, eWAY can help you contact your preferred bank to start the process

Yes
Setup Up and running in 4 - 6 days Can take 7 - 15 days to set up and requires a bank account with a merchant facility enabled. Instant
Xero Yes Yes Yes
Require merchant system

No. eWAY sets everything up for you.

Yes, eWAY

No
Multi-Currency

Yes, but you must open separate accounts for each currency that you wish to accept.

If you use NAB as your merchant facility you can take payments in many currencies, but you must open separate accounts for each currency that you wish to accept.

Yes
Support

24/7 Phone, Chat & Email Support

24/7 Phone, Chat & Email Support

Email Support
Integration WooCommerce, Shopify, Magento and more WooCommerce, Shopify, Magento and more WooCommerce, Shopify, Magento and more


eWAY says:

Matt Bullock, Founder and CEO of eWay welcomed the competition in the payments space but questioned the way that Stripe's launch had been covered.

 

"The fact that Stripe holds funds for seven days shows clearly that they don’t understand the needs of Australian businesses. Their lack of phone support, growth restrictions, and slowness in releasing funds are a real problem.

On top of that, a lot of the things they claimed as unique, like their developer-friendly API, end-to-end facilities, easy setup, are all matched or exceeded by eWAY. We have the heritage of 16 years of local operation, over 15,500 customers, billions of dollars in transactions handled, NAB-support, and hundreds of partners.

We love competition, and we’re confident we can go toe-to-toe with any payments provider, whether it’s home grown or international. But any business looking for a payment facility to help grow their operation, needs to ensure they are comparing apples with apples."

UPDATE: Since the time this article was first published - Stripe has reduced their settlement time to 2 days.


Stripe says:

Kelly Sims of Stripe was keen to clear things up with their multi-currency differences.

 

"But one thing Mr. Bullock seems especially distressed (and misinformed) about though is multi-currency support. As far as we know, Stripe is the only payment company in Australia today that allows Australian businesses to begin processing credit cards in over 110 different currencies from day one, and never need to go through the hassle of setting up separate merchant facilities or currency accounts.

The most important difference is that Stripe is a set of modern APIs and tools that allow developers full control over the look and feel of the entire payments experience. Being developers ourselves, we're also pretty zealous about data portability and believe that we should keep customers with us by offering a better product rather than locking them in.

All that said, we are very happy to compete with anyone who shares the goal of increasing the total amount of commerce that takes place online, helping companies get started, and enabling new business models."

Bottom line in the Stripe vs eWay battle

Choose eWay if:

  • You need your money right away, Stripe's 2 day settlement might be enough to turn you away
  • You're in an industry plagued by fraud and you want daily fraud reports
  • You love Aussie business and accept all of your payments in AUD
  • You have a very high volume of transactions, primarily from Australians
  • You want to on-charge credit card fees on invoices (possible via the Xero integration)

Choose Stripe if:

  • Your checkout experience is most important to you and you have a developer to fine-tune and reduce abandonment, etc.
  • Most of your sales are domestic
  • You need to accept money directly in many different currencies
  • You're expanding globally quickly and doing more than $40,000 per month as custom pricing plans are available
  • You want to get started quickly and easily (eWay's sign-up can take up to a week... as it did in our case!)

16 Responses

David
David

July 10, 2017

We have been operating and eCommerce business to great success for over 8 years. eWay was the biggest hassle and pain in the ass we have ever experienced in trying to get set up. As mentioned by another astute operator the paperwork and information required is ludicrous and not even related to running a merchant till. After 5 weeks yes 5 weeks bank statements, tax returns, supplier information and more!! Living in the dinosor age of global international eCommerce. Stripe and PayPal will do you fine we have put millions of dollars of sales through these channels and they can set you up in very little time. If you are an ecommerce newbie then please learn from thos who have survived adn been around the block eWAY is not a good modern fit for your business. eWay -sLOW Way.

Dean
Dean

July 04, 2017

Hi,

I’m looking to take online payments for a web design and marketing business.

These payments could take many forms from pay on invoice, to paying a deposit online (i.e. 50%) to recurring payments.

In researching this, I narrowed my search down to Stripe and eWay (with PayPal as a backup)… and found this article comparing the 2.

Given how similar they appear to be to most of the people commenting above… the decider for me will come down to which of them is superior vs Recurring Payments.

I require Recurring Payments as follows…

- $X upfront, $Y month to month (not fixed).
- $X upfront, $Y month to month (fixed term).
- Free Trial Period for X months, $Y month to month (fixed/not fixed).

Quite literally… in the absence of the Recurring Payments requirements I can’t pick between them.

Any thoughts…?

Dean.

Jonathan Horne
Jonathan Horne

March 30, 2017

Warning regarding eWAY – Don’t get locked in!

I have been a loyal customer of eWay for 5+ years, and after the successful sale of my business the new owner had a provision that payments needed to be moved to Stripe. I requested to transfer my 10K+ customers in a PCI compliant way to Stripe however eWay are hiding behind their terms and conditions to prevent the transfer of clients to another payment facility.

Basically, the minute you start using eWay you are locked into using them for life.

See the “Transfer Away” policy for Stripe, BrainTree below:

https://support.stripe.com/…

https://articles.braintreep…

eWay’s resolutions if you ever want to execute your right to choose another provider is:

“As per our discussion, eWay is unable to extract and distribute this personal information from our system as we need to adhere to our Information security policy and PCI compliance requirements.”

I suggest you find out for yourself and call eWay and ask how you can move to Stripe or any other provider should you wish.

Ben Jackson
Ben Jackson

February 09, 2017

eWay have a full API and you can completely control the checkout process.

We’ve been using them for a year now and very happy with their product and their support is amazing.

The eWay+Bank option can also be significantly cheaper than 1.75% of each sale.

Helen Crozier
Helen Crozier

February 09, 2017

Hmmm… thanks for this guys.
I recently signed up with stripe and decided to give eway a trial mostly to see if having the money instantly would make any difference. I started the process of signing up and have to say I wasn’t impressed with the service right from the start. First of all the help desk guy didn’t know why I was being asked for a credit card considering I had not asked for priority activation. After some time he came back asking me to call which I already had. Unfortunately the phone manner of the next person I spoke with didn’t make me feel so great about signing up with eWay. It turns out that unlike Stripe eWay bills you at the end of the month for transaction fees. Stripe take it out and give you the net amount. It’s a bit like having your tax taken out of your pay each week rather than having to budget for it and put it aside :-)
I’ve done a few transactions with Stripe and so far they have gone well. I had an identification issue at the very beginning which was resolved very quickly. The transaction fees are half of eWay’s on the small fry plan if domestic cards are used so at this point I will stay with stripe and put up with the 7 day wait for funds being transferred.

Fiona Fell
Fiona Fell

February 09, 2017

Thanks for such a thorough side by side comparison. I’ll be sharing this with clients as they make their decisions around how to collect cash from their clients online.

Personally I now use Stripe. From sign up, to testing, to live and collecting money in under 7 minutes.

And as a work from home business, my bank used to hold on to my funds for at least 7 working days anyway, so the EWAY+bank method was losing its shine after 5 years of increasing annual fees, and increasing merchant fees.

Then with Stripe now out of beta, my transaction fees went DOWN! #Win for small business.

Rich
Rich

February 09, 2017

An excellent comparison.

As someone moving from eWay to Stripe for my Australian business, my main concern was the 7-day settlement (which can push out to 8 days if it happens over a weekend). I liked the interface of Stripe and the fact I didn’t need to pay fees to eWay and the merchant bank. I gave Stripe a call on a whim and asked if they could possibly reduce the turnaround time (I expected a no answer) because of my business type and having no chargebacks. They said they would reduce it to 4 days and will be looking to reduce to 2 days later in the year.

I’m happy with the set up with the main benefits for me being the ease of setting up new accounts (for extra businesses), integrations with analytics/invoicing programs and design/usability.

Matt
Matt

February 09, 2017

We had looked at eWAY for a while but the whole privacy, delivery, customer service, refund policies etc that you need to display and the hoops you have to jump through to setup a merchant account are just enormous. As a small business we don’t have time to deal with that kind of thing and don’t mind waiting the 7 days. The thing that really sold it to us was Stripe’s developer API. Extremely simple, and the ‘Checkout’ feature is just amazing. We have developed using eWAY for many years and when I saw Stripe and gave it a test it blew my mind with how simple it was.

Steven
Steven

February 09, 2017

Thanks for the detailed summary. Really helped my decision process. I’d already narrowed down to these two, am now swayed by eWay.

Helen Crozier
Helen Crozier

February 09, 2017

Since writing my post above I’ve been on a learning curve. This has been escalated by my decision to use Xero for my online accounting needs. Great app. Highly recommend it. Shouldn’t have waited so long. I used stripe for my first month of billing and suddenly after using xero I realised that the fact that Stripe do take their commission out of the payment sent to you (7 days later) is actually a problem.
Trying to balance Xero was time consuming and annoying!! I am now in the process of setting up with eWay. Their CEO reached out to me to assure me my initial experience was one that was not the norm and that as a company they place customer satisfaction at the top of their priority. I’m happy to try them out and also enjoy receiving funds immediately rather than having to wait 7 days as I currently do with Stripe.

Maclean
Maclean

February 09, 2017

Hi there Sue,

When you applied to eWAY all of our merchant services was underwritten by a bank and we had to follow their own risk analysis and document requirements.

We’re now able to do our own risk assessment and can activate accounts within 10 minutes of applying.

I’m truly sorry you had a negative experience with eWAY and I assure you that we take all feedback on board – I’ll be making our executive team aware of yours so that they can address it.

If you’d like to take advantage of our current pricing (it’s the lowest in the industry) we’d welcome the opportunity to win back your trust and provide your merchant services facility. Please don’t hesitate to call us if we can help with anything else.

Kind regards,

Maclean

Sue
Sue

February 09, 2017

This is my experience of eWay and this review is written as my own personal opinion. The business I work at approached eWay prior to seeing this article and was advised that it would take 4 business days to do a merchant facility. I work at a company running over 10 years doing a large volume of transactions with No Chargeback in our history after over 10 years in online sales. Our company has not loans and is a viable going concern, we are a recognise worldwide brand. eWay took over 6 day just to come back and ask for more unrelated information (in our opinion) for example how many employees we had in each country, totally unrelated to the merchant facility requirements. No bank had perviously asked this information and we checked with our legal department, it was not required for the application. As we are a well known brand we closely guard our business operations as in our experience when we have been fully open on business operations such as employee number in locations, we have often had a competitor set up in competition. This company needed more than a bank did for a loan, and we were asked more and more information that was in our opinions totally unrelated to setting up of a merchant facility. After 8 days of being asked unrelated questions to the Merchant Services Application and process which was in our opinion clearly a data fishing expedition we went to another merchant facilitator (eWay’s opposition) and was surprised at how easy the process was to change over Merchant facilitators. In my opinion your article is very good and I had only wished I had seen it prior to doing the application with eWay. Based on my own experience I would never recommend any business use eWay.

Maclean
Maclean

February 09, 2017

Hi JM,

eWAY’s API used to be fairly basic but in the last couple of years has been updated to be on the same level as Stripe. Check out the new docs here – https://eway.io/api-v3/ Lots of RESTful goodies!

Maclean

JM
JM

February 09, 2017

Have used eWay in the past but they have a set of antiquated APIs that make it hard for custom development if you’re not just another shopping site.

Will be using Stripe or something similar going forward, there REST API’s are much simpler to use.

Raphael
Raphael

February 09, 2017

If you use eWAY – have a backup merchant account!!!!

We are a registered training organisation in Melbourne. We’ve been registered since 2012, with 8 staff and annual revenues of $750,000. Above 95% of our revenue comes through subscriptions (recurring payments) through Infusionsoft via eWAY – until last Wednesday.

Last Wednesday, eWAY ‘suspended’ our account without any notice, and without letting us know.

So since last Wednesday our business has had NO revenue.

I only became aware of this because Infusionsoft sent a bunch of ‘transaction declined’ emails (Good old Infusionsoft!). When I contacted eWAY it took 4 phone calls, 2 emails and 2 FB messages, over an entire day, before I spoke with someone who would tell me what was going on.

The person I spoke with apologised for the inconvenience(!), and said that as we are in the Education sector we had been flagged as ‘too risky’. We have not had a single disputed transaction, or any complaints or greivances from a single client. Ever.

As far as I can tell, this risk assessment was triggered by our revenues increasing beyond some threshold. This is only speculation because eWAY wouldn’t or couldn’t tell us why.

So now we have a business, with lots of customers, and no income. Our entire staff will spend the next week contacting all our customers individually and setting them up on new payment plans using Paypal. Hopefully we’ll manage this before we become insolvent.

It’s incredible to me that:

a) eWAY terminated our account based on some algorithm, in the absence of any adverse incident, ever.

b) eWAY did not see fit to give us any advance notice that our account was being reviewed, or that we would suddenly find ourselves without any source of revenue

c) eWAY did not notify us that our account had been terminated – we had to figure it out for ourselves.

d) It took me a full day to get someone from eWAY on the phone to tell me our account was terminated, not just temporarily suspended.

If you use eWAY – have a backup merchant account!!!!

Mustafa
Mustafa

February 09, 2017

Thanks for the article, first thing I came to when I was researching this. I ended up signing with Stripe tonight, because the process was a lot easier (and instant). And because our developers will find it a lot easier to integrate payment systems in our apps.

A few minutes after I signed up, I received an email saying that the pay-out schedule has been changed to 2 days instead of 7, so I’m very happy about that. I’m not sure if that was random or if it’s for everybody, because their home page says 7 days before you sign up for an account.

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