ShipSquad

How to Implement Payment Processing

intermediate14 minSoftware Development

Add secure payment processing to your application with Stripe, including subscriptions, invoices, and webhooks.

What You'll Learn

This intermediate-level guide walks you through how to implement payment processing step by step. Estimated time: 14 min.

Step 1: Set up Stripe integration

Create a Stripe account, install the SDK, and configure API keys for test and production environments.

Step 2: Implement checkout sessions

Build server-side checkout session creation with line items, pricing, and redirect URLs for the Stripe-hosted checkout experience.

Step 3: Handle webhooks

Set up a webhook endpoint to process payment events like successful charges, failed payments, and subscription changes.

Step 4: Add subscription management

Implement subscription creation, upgrade/downgrade flows, cancellation, and proration using Stripe Billing.

Step 5: Build the customer portal

Integrate Stripe Customer Portal for self-service billing management including payment method updates and invoice history.

Frequently Asked Questions

Stripe Checkout or custom payment form?

Use Stripe Checkout for fastest integration with built-in compliance. Build custom with Stripe Elements only when you need a fully branded checkout experience.

How do I handle failed payments?

Implement Stripe's Smart Retries for automatic retry, send dunning emails for expired cards, and gracefully degrade access for past-due subscriptions.

How do I handle taxes?

Use Stripe Tax for automatic tax calculation and collection across jurisdictions. It handles VAT, sales tax, and GST based on customer location.

Further Reading

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