What is Stax? The All-in-One Subscription Model
Stax (formerly Fattmerchant) positions itself as a comprehensive, subscription-based payment platform. Its core value proposition is simple: pay a flat monthly fee and get access to the direct-cost interchange rates without any additional markup from Stax. They claim this can save businesses up to 40% on processing fees, a compelling offer for service-based businesses with steady revenue.
Key Features for Digital Nomads
0% Markup Processing: You pay the wholesale interchange rate plus your monthly subscription. This can be highly cost-effective if your LLC processes a significant volume (typically over $5,000 per month).
Same-Day Funding: A massive advantage for managing cash flow across time zones. Get access to your funds on the same day, including weekends and holidays.
Integrated Invoicing: Digitize your entire invoicing process with tools for recurring billing and scheduled payments—perfect for retainers and project-based work.
QuickBooks Integration: Simplifies your accounting and reconciliation, a crucial feature for any serious business owner.
Virtual Terminal: Easily key in credit card payments taken over the phone or via email.
Surcharging Capability: Stax allows you to pass the credit card processing fee directly to your client, effectively making your processing costs zero. (Note: Check the legality of surcharging based on your client's location).
Who is Stax Best For?
Stax is ideal for established digital nomads, consultants, and online agencies with consistent, high-volume transactions. If your US LLC is processing more than $5,000-$10,000 per month, the flat subscription fee often becomes significantly cheaper than Stripe's per-transaction model. Its ease of use makes it perfect for non-technical founders who want a powerful system without needing to write code.
What is Stripe? The Developer's Powerhouse
Stripe is a global leader in online payment processing, renowned for its robust infrastructure and developer-first approach. It operates on a pay-as-you-go model, charging a percentage and a flat fee for each successful transaction. It’s incredibly flexible, but unlocking its full potential often requires technical expertise or a developer.
Key Features for Digital Nomads
Powerful API and Integrations: Stripe can be customized to do almost anything and integrates with virtually every platform, from Shopify to custom-built websites.
Stripe Atlas: A unique service that can help entrepreneurs incorporate a US company (like an LLC or C-Corp), set up a US bank account, and get a Stripe account running from almost anywhere in the world.
Global Reach: Stripe is built for international business, handling over 135 currencies and multiple payment methods, making it easy to charge clients worldwide.
Comprehensive Toolset: Offers a la carte services like Stripe Billing (for subscriptions), Invoicing, and Connect (for multi-vendor platforms), allowing you to build a tailored payment stack.
Top-Tier Security: As a PCI Service Provider Level 1, Stripe manages the entire security and compliance process, offering best-in-class protection.
Who is Stripe Best For?
Stripe is a fantastic choice for startups, businesses with fluctuating or low monthly revenue, and entrepreneurs who need deep customization. If you're just starting and aren't sure what your monthly volume will be, the pay-as-you-go model is low-risk. It's also the default choice for tech-savvy founders or those who have access to a developer to leverage its powerful APIs.
Head-to-Head: Stax vs. Stripe for Your Nomad Business
Costs & Fees: Flat-Rate vs. Pay-as-You-Go
This is the most significant difference.
Stax: You pay a monthly fee ($99 to $199) plus the direct interchange cost (average ~1-2%) and a small per-transaction fee (e.g., 8-15 cents). This is predictable and cheap at scale.
Stripe: You pay 2.9% + 30¢ for every online transaction. There are no monthly fees for the basic plan, but extra features like advanced invoicing or international payments add costs (e.g., +1% for international cards, +1% for currency conversion).
Winner: Tie. Stax wins for high-volume businesses. Stripe wins for low-volume or inconsistent businesses.
Ease of Use & Setup: Plug-and-Play vs. Developer Needed
Stax: Known for its straightforward, user-friendly dashboard. Onboarding is simple, and you can get started quickly without technical skills.
Stripe: While setting up a basic checkout is easy, tapping into Stripe's real power requires developer intervention. The interface can be complex for beginners.
Winner: Stax. It’s built for business owners, not just developers.
Speed of Payouts: Getting Your Money Faster
Stax: Offers same-day funding. This is a game-changer for cash flow.
Stripe: Standard payouts take 2-3 business days. Your very first payout can take 7-14 days. Instant Payouts are available but cost an extra 1% fee.
Winner: Stax. Faster access to your money without extra fees.
Security: Is Your Money Safe?
Stax: Is PCI compliant and uses top-tier security. However, it functions as a reseller of services from an acquiring bank, meaning it doesn't own the entire risk management process.
Stripe: Holds the highest level of PCI certification (Service Provider Level 1). It is a direct Payment Facilitator (PayFac), managing the entire process and risk end-to-end.
Winner: Stripe. While both are very secure, Stripe’s infrastructure is considered the industry gold standard.
Customer Support: Getting Help When You Need It
Stax: Praised for its in-house, personalized customer support. With a smaller customer base, they can provide more dedicated attention.
Stripe: As a massive company, its customer support is often cited as challenging, relying heavily on email and automated responses. Getting a human on the phone for a complex issue can be difficult.
Winner: Stax. For solopreneurs, accessible and effective support is invaluable.
