Running a business is about effectiveness, keeping workers feeling safe and making a profit to innovate whenever possible.
To make that profit, many solutions can be applied: smart strategies, cutting costs, and finding the best tool to manage finances and payments.
In this article, we are going to explore two great corporate cards used by companies: Stripe and Ramp.
Each one has its peculiarities, but where they have something similar, we can compare and bring a verdict.
What Is Stripe?
Stripe is one of the leading payment institutions that manage companies active on the internet.
Its work is focused on the development of powerful and flexible tools for online commerce.
Through designed APIs and unique functions, Stripe develops an activity so that you get the best possible product when creating, for example:
- subscription services;
- Markets on demand;
- e-commerce stores;
- Crowdfunding platforms.
If we are going to compare by service niche, Stripe is a company that performs the same role as PayPal – being, in fact, the main competitor of this one today. Yet, there are some differences. Read Stripe Vs. PayPal.
Among the main features offered by the company, we can highlight:
- Invisible acting;
- Simplified integration;
- Security features;
- Support for entrepreneurs;
- Corporate card
In fact, it is Stripe’s corporate card that we are going to assess in this article.
What Is Ramp?
New York-based Ramp competes with start-ups, including Brex and Divvy, in offering corporate cards and expense software for businesses.
Ramp makes money by taking a slice of the interchange fees, or fees that merchants pay to the Visa credit card network and the merchant’s bank whenever a customer uses a card to make a purchase.
Ramp also charges customers a monthly fee for access to the most advanced software features, which include integration with Slack to review transactions made on Ramp cards.
Ramp’s technology analyzes your company’s financial data to find ways to save money by removing duplicate subscriptions, discovering supplier pricing spikes, or altering payment methods to enhance your cashback profits.
It also offers insight into spending trends throughout your whole organization, providing you a big-picture perspective of forthcoming payments and assisting you in forecasting expenditure more accurately over time.
In the game of making money, fees are something to worry about if you need to meet ends with a certain budget.
Because of that, we find it important to check fees as the first thing in this article.
Stripe’s corporate card doesn’t charge any fees from companies that adhere to it.
However, don’t mistake the absence of fees on Stripe corporate card for its payment platform.
If you are looking for the Stripe payment platform, these are the fees:
- Online Transaction Fee: 2.9% + $0.30
- In-person Transaction Fee: 2.7% + $0.05
- Fraud Protection: $0.05 per screened transaction
- Chargeback Fee: $15
- Dispute Fee: $15
- Recurring Billing: 0.5%
- Invoicing: 0.4% per paid invoice, first 25 invoices free per month
- Early Termination Fee: 0
Moreover, if you are looking to learn about Stripe as a way of processing payments, you can read it here.
Ramp is a somewhat different service from Stripe. Its focus is only on delivering a corporate card, and it doesn’t charge any fees from customers.
Its way of making money was already explained in the topic above, so that should cover any doubts about the legitimacy of a card that doesn’t come with fees.
When it comes to fees, both Stripe and Ramp are great options since neither of them charges anything from businesses.
What About The Cashback?
Stripe’s cash back is up to 2%, while Ramp’s cash back is up to 1.5%.
How Easy Is It To Get Access To Each One?
Because the Stripe Corporate Card is under beta testing, it is only available by invitation. You can request an invitation in the following ways:
- Go to the Stripe Corporate Card website and click the Request Invite button.
- Sign in to your Stripe account or fill out the form with some basic company information, such as staff numbers and yearly sales.
- Click the Request Invite button.
- If you are selected to apply, you will get an email with more details.
Stripe evaluates eligibility based on payment volume, Stripe history, and bank account history.
Ramp, on the other hand, merely requires businesses and LLCs to be registered in the United States, to have at least $75,000 in cash in a US business bank account, and to conduct the majority of their activities and corporate spending in the United States, among other requirements.
Spending restrictions are often set based on the amount of money in your bank account.
It is easier to get access to a Ramp corporate card.
Since the service is the main focus of the company instead of a beta attempt, odds are you will get the card for your company in no time and also enjoy great customer support.
Rewards for using each card
Most of the finest corporate credit cards promote primarily on their incentives, which you can see pay off in actual money.
Ramp, which is more recent, has a simple 1,5% cashback reward on all purchases.
Stripe, on the other hand, offers 2% cashback on your top two categories, which the service calculates for you monthly.
Plus, you get 1% cashback on all other purchases.
As for other benefits, Stripe will process $50,000 for free after you spend the first $5,000.
On the cashback criterion, it all depends if your company spends much in a variety of categories or if its expenses are more focused on two categories.
It is sort of a tie here.
Stripe claims that your company will not be held liable for fraudulent transactions made with a Stripe Corporate Card.
Employees will be able to report a lost or stolen card as well as challenge any documented fraudulent transactions via the Stripe Dashboard.
When a card is reported as lost or stolen, it is instantly frozen. When Stripe finds that a disputed transaction is fraudulent, your account will be credited as well.
Ramp provides all employees with virtual cards, which adds an extra layer of security against fraud.
Ramp also sends purchase requests straight to the relevant manager by email or SMS (or Slack, if you sign up for Ramp’s Platform or Enterprise tier—but more on that later) to simplify the permission process when someone on your team wants to make a purchase.
From spending restrictions to the length of time a virtual card is active, you have complete control over business spending and can monitor every transaction in real-time.
You may even provide similar rights to physical Ramp cards, allowing them to refuse any transactions that violate business standards.
Both companies offer enough protection to clients regarding fraud.
These cards often offer larger spending limitations than other types of standard business credit cards and are not based on your credit history.
Ramp and Stripe limit your spending based on your bank balances. Simply, a larger bank balance translates into greater limitations.
Stripe also utilizes your payment processing history, particularly if you’ve previously utilized Stripe’s payment processing software.
Both corporate cards let your company spend enough to keep business going.
Customer support for Stripe users is magnificent. You can get support through email, look for solutions on a FAQ, talk on the telephone with the support staff, or even reach through Discord.
Interest rate is something that both businesses and people worry about when acquiring a credit card.
Some corporate cards, however, don’t charge interest rates.
This might seem surprising, but the trick here is that they also don’t let you carry a balance.
Ramp and Stripe are cards for companies that pay all expenses monthly.
Neither company charges an interest rate, so it is a tie.
Is Ramp A Charge Card?
Yes, Ramp falls into the category of charge cards.
Charge cards are cards that do not carry a balance from one month to the next.
Companies holding charge cards need to pay the full balance each month.
The upside of this is that the card issuer doesn’t charge any interest rate while not being suitable for a business that may need to hold a balance for inventory or other expenditures.
How much does Ramp card cost?
A Ramp card doesn’t cost anything for business owners.
Stripe and Ramp corporate cards are very similar in their working, as you can see from the comparisons drawn so far.
The biggest difference is the approval time.
While getting a Ramp card might be almost instant, Stripe may take longer to answer your application since it is still in a beta state.
If you are just starting your business, the odds you will get your hands on a Stripe card are lower.
Now, if you have already been using Stripe as a payment processor for a long time, it is easier to get a corporate card for your business.
Small businesses that can plan themselves finely and pay due debt monthly will benefit greatly from the general cashback offered by Ramp.