Setting Up Stripe to Handle Invoices
Stripe is one of the most popular payment platforms for small businesses. It supports Canadian businesses with competitive rates, clean invoicing tools, and direct payouts to your business bank account. This guide walks you through creating a Stripe account for your corporation, configuring it for Canada, and sending your first invoice.
For informational purposes only. Stripe fees and features change — always verify current pricing at stripe.com. This is not financial or legal advice.
Why we recommend Stripe for new corporations
There are many payment and invoicing platforms available. Here's why Stripe tends to be the right fit for a newly incorporated Ontario business:
No monthly fee
Stripe charges per transaction only (~2.9% + 30¢ for domestic cards). There is no subscription cost to get started.
Professional invoicing built in
Stripe Invoicing lets you send branded invoices that clients can pay online by card or bank transfer.
CAD payouts to Canadian accounts
Stripe pays out in Canadian dollars directly to your business bank account (Wealthsimple and BMO are both supported).
Automated tax calculations
Stripe Tax can automatically calculate and collect GST/HST on invoices once configured — very useful once you're registered.
Widely recognized
Clients trust the Stripe-hosted payment page. No custom payment gateway setup required.
Integrates with everything
Connects with QuickBooks, Wave, Xero, and most accounting software for bookkeeping.
Step 1 — Create your Stripe account
Go to stripe.com and sign up
Visit stripe.com and click "Start now". Use your business email address — the one associated with your corporation. Avoid using a personal Gmail.
Verify your email
Stripe will send a verification link to your email. Click it to continue.
Choose your account type
When prompted, select "Company" as your account type (not Individual). This is important for tax and payout purposes.
Fill in your business details
Enter your corporation's legal name (exactly as it appears on your Certificate of Incorporation), your Business Number (BN), registered address in Ontario, and your industry/business description.
Add a bank account for payouts
Under Settings → Bank accounts, add your business bank account. You'll need your institution number, transit number, and account number. Stripe will send a small verification deposit within 1–2 business days.
Step 2 — Configure Stripe for Canada
Set your settlement currency to CAD
Go to Settings → Business settings and confirm your settlement currency is set to Canadian dollars (CAD). This ensures payouts land in your bank account in CAD, not USD.
Set up tax collection (HST/GST)
If your corporation is registered for HST (or you expect to exceed $30,000 in taxable revenue and need to register), you have two options:
- a)Manual tax lines on invoices: When creating an invoice, add a tax line item manually and label it “HST 13%” (for Ontario). Simple and transparent.
- b)Stripe Tax (automatic): Under Settings → Tax, enable Stripe Tax. Add your HST registration number. Stripe will automatically calculate and collect the correct tax based on the customer's location. This is the better option as you grow.
Add your business branding
Go to Settings → Branding. Upload your logo, set your brand colour, and add your business name and website. This branding appears on all hosted invoice and payment pages your clients see.
Configure payout schedule
Go to Settings → Payouts. You can set payouts to happen automatically on a daily, weekly, or monthly schedule. For most small businesses, weekly automatic payouts strike the right balance between cash flow and simplicity. Note that Stripe holds the first payout for 7–14 days while they complete verification.
Step 3 — Send your first invoice
Once your account is configured, sending an invoice takes about two minutes:
Go to the Invoicing section
From the Stripe dashboard, click Invoicing in the left sidebar.
Click "Create invoice"
You can create a one-off invoice or use a recurring template.
Add the customer
Type the customer's name and email. Stripe saves customers for repeat billing.
Add line items
Add each service or product as a line item with quantity and price. Stripe shows the running total.
Add tax if applicable
If not using Stripe Tax automatically, add a tax line for HST (13% for Ontario buyers) and label it clearly.
Set payment terms
Choose a due date — Net 30 is common. You can also enable automatic reminders before and after the due date.
Choose payment methods
Enable card payments and bank debits (Stripe's ACH-equivalent for Canada). Bank debit transfers are free for clients and have lower Stripe fees.
Send it
Click Send. Stripe emails the invoice with a Pay Now button. You can also download a PDF to send manually.
Understanding Stripe fees in Canada
| Payment type | Stripe fee | Notes |
|---|---|---|
| Canadian credit/debit card | 2.9% + 30¢ | Per successful charge |
| International card | 3.9% + 30¢ | For non-Canadian cards |
| Stripe Invoicing (free plan) | 0.4% of invoice amount | Only when invoice is paid via Stripe |
| Stripe Tax | $0.50 per transaction | Only when Stripe Tax auto-calculates |
| Bank debits (pre-authorized) | 0.8%, max $5 | Lower cost than card for large invoices |
| Payouts to Canadian bank | Free | No payout fee for CAD bank accounts |
Fees are approximate and may change. Always verify at stripe.com/en-ca/pricing before making business decisions.
Practical tips for Canadian businesses
Use Pre-Authorized Debit for recurring clients
For clients you invoice regularly, set up pre-authorized debit (PAD) agreements through Stripe. The fee cap of $5 means it's significantly cheaper than cards for invoices over ~$625.
Keep Stripe and your accounting software connected
Connect Stripe to Wave Accounting (free) or QuickBooks at the start. Every payment and fee is automatically categorized. This saves hours at tax time.
Invoice in CAD unless you have a reason not to
Invoicing in USD adds complexity to your bookkeeping and foreign exchange risk. Stripe supports multi-currency, but keep it simple while you're starting out.
Review your HST return schedule with an accountant
Once registered for HST, you'll file returns quarterly or annually. The HST you collect via Stripe invoices must be remitted to the CRA. Stripe's tax reports help, but a bookkeeper can make sure you're remitting correctly.
You're ready to get paid.
With your corporation registered, your bank account open, and Stripe configured, you have a solid operational foundation. The last piece is keeping your corporate records organized in a minute book.