Stripe UK Guide

The Definitive Stripe Guide for UK E-commerce - GoFormed

The Director's Guide to Stripe for UK E-commerce

A comprehensive walkthrough by GoFormed covering the setup, integration, and strategic use of Stripe for your UK Limited Company.

Your Foundation: A Properly Formed Company

Stripe's verification process is rigorous and requires a legitimate, registered UK Limited Company. This is the non-negotiable first step. We specialize in forming companies structured correctly for e-commerce and financial compliance.

Establish My E-commerce Company

Part 1: Why Stripe is the E-commerce Gold Standard

While many payment processors exist, Stripe has become the default choice for serious online businesses for several key reasons:

Unmatched Security & Compliance: Stripe handles all PCI DSS compliance for you. This is a complex and costly security standard for handling card data. By using Stripe, you are effectively outsourcing this entire burden, which is a major legal and financial advantage.
Conversion-Focused Checkout: Stripe's checkout flows (Elements and Checkout) are meticulously designed and tested to reduce friction and increase the likelihood of a successful payment. They support features like address auto-complete, saved payment methods, and mobile wallets (Apple Pay/Google Pay) out of the box.
Developer-Friendly Ecosystem: Stripe's powerful APIs and extensive documentation allow for deep customisation and integration, enabling your business to scale without being limited by your payment processor.
A Suite of Business Tools: Stripe is more than just a payment gateway. It offers an entire suite of financial tools including invoicing, subscription billing (Stripe Billing), fraud prevention (Radar), and advanced analytics (Sigma).

Part 2: The Pre-Activation Dossier

Gathering every piece of information before you begin is the key to a fast, one-session setup. Prepare the following:

Company Legal Information

Full Legal Company Name: Exactly as it appears on your Certificate of Incorporation.
Company Registration Number (CRN): Your 8-digit number from Companies House.
Registered Office Address: The official address on file at Companies House.
VAT Number (if applicable): If you are VAT registered, have your number ready.

Director & Shareholder Information

Personal Details: Full name, date of birth, and home address for each director and any shareholder owning 25% or more of the company.
Personal ID: A digital copy of a passport or driving licence may be required for verification.
Ownership Percentages: Know the exact ownership stake of each individual you need to list.

Business Operational Details

UK Business Bank Account: The sort code and account number for your company's dedicated business bank account. This is where Stripe will send your payouts.
Business Website URL: A live, professional website with clear product descriptions, terms of service, and a privacy policy. This is one of the most important verification checks.
Statement Descriptor: The short name (e.g., "MYSUPERSTORE") that will appear on your customers' bank statements.

Part 3: The Step-by-Step Activation Process

The following steps will guide you through activating your Stripe account for transactions.

Create Your Initial Account

This first step is simple: provide an email address and create a strong password. This creates your Stripe dashboard, but it is not yet active for payments.

Activate Your Account: Business Details

Inside your dashboard, click the "Activate your account" prompt. This begins the main application.

Select your "Type of business" as "Company".
Choose the correct legal structure, which will be "Private Limited Company" for most users.
Carefully enter your Company Registration Number. Stripe will often auto-fill details from the Companies House database. Verify that this information is correct.

Verification: Director & Owner Information

This is the critical "Know Your Customer" (KYC) stage. Be meticulous.

Who to Include?

You must list every individual who is a company director and/or owns 25% or more of the company shares. Omitting a required individual will halt your application.

For each person, you will provide their full legal name, role, email, date of birth, and home address.
Stripe may perform an electronic identity check. If this fails, you will be prompted to upload a photo of an ID document.

Payouts: Linking Your Bank Account

Here you will specify where Stripe should send your money. It must be a standard UK business bank account in your company's name.

Public Details & Submission

Statement Descriptor: Choose a short, easily recognizable name for your business that customers will see on their bank statements. A good descriptor reduces "friendly fraud" and chargebacks.
Customer Support Phone Number: Provide a contact number for customers.
Review all information one last time and submit the application. Approval is often instant if all details are correct and verifiable.

Part 4: Post-Activation: Your Essential First Hour

Your account is active. Now, configure it for optimal performance and security.

Understanding Your API Keys

Go to the "Developers" section. You will see two important keys: a Publishable Key (pk_live_...) which is safe to use in your website's front-end code, and a Secret Key (sk_live_...) which must be kept secure on your server and NEVER exposed to the public.

Enable 2-Factor Authentication (2FA): Go to your personal profile settings and enable 2FA. This is the single most important step to secure your account from unauthorized access.
Customize Your Branding: In your settings, find the "Branding" section. Upload your logo and set your brand colours. This ensures your checkout page, receipts, and invoices look professional and match your website.
Configure Stripe Radar: Go to the "Radar" section. Even on the free tier, you can configure basic rules. For example, you can automatically block payments from specific countries or set a rule to request 3D Secure verification for payments over a certain amount (e.g., £200).
Set Your Payout Schedule: In your settings, you can choose how often Stripe sends money to your bank account—daily, weekly, or monthly. New accounts often have an initial 7-day rolling payout schedule which may become faster over time.

Part 5: Core Integrations

Connecting Stripe to your e-commerce platform.

For Shopify Users

Shopify's native payment system, "Shopify Payments," is actually a white-labeled version of Stripe. To set it up, you simply go to Settings -> Payments in your Shopify admin and complete the Shopify Payments activation, which mirrors the Stripe verification process. All features like Apple Pay and Google Pay are enabled automatically.

For WooCommerce (WordPress) Users

The best method is to use the official, free "Stripe for WooCommerce" plugin. Install it from your WordPress dashboard, go through the setup wizard, and connect it to your Stripe account. Within the plugin settings, you can easily enable/disable various payment methods, including Apple Pay, Google Pay, and "Buy Now, Pay Later" options like Klarna.

Part 6: Frequently Asked Questions (FAQ)

Why is Stripe holding my money? (Rolling Reserves)

For new businesses or those in higher-risk industries, Stripe may implement a "rolling reserve". This means they hold a percentage of your sales for a set period (e.g., 90 days) before releasing it. This is a security measure to cover potential chargebacks and refunds. Consistent sales and a low dispute rate will typically lead to this reserve being removed over time.

How do I properly handle a chargeback (dispute)?

When a customer disputes a charge, you will be notified in your dashboard. You must respond before the deadline. Provide clear, concise evidence that the charge was legitimate. This includes proof of delivery (tracking numbers are vital), customer communication, and details of your terms of service. Be professional and factual in your response.

Stripe vs. PayPal: Do I need both?

It is a common and highly recommended strategy to offer both. Stripe is superior for credit/debit card processing and integrating directly into your site for a seamless checkout. PayPal is a trusted brand that some customers prefer and explicitly look for. Offering both can increase your conversion rate by catering to all customer preferences.

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