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Ask HN: What are some low cost payment processing alternatives to Stripe?

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Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#21

Post by Nars088 »

sramam wrote: post #16
hiyer wrote: post #9

Earlier quoted context omitted.

On a related note, you can look at hyperswitch [1], which is an open-source payment orchestrator that supports multiple payment processors. You can self-host it or they have a hosted version as well. 1. https://github.com/juspay/hyperswitch (not affiliated with this project in any way)

Do you use this? I can't seem to figure what their pricing strategy is or who's running it. > Free-tier > Free-tier for startups. Lowest Price for others.

Hyperswitch is free to use for the first 10k transactions of the month. After that it costs $0.04 per transaction. It is a payment switch that comes pre integrated with major processors. So as a merchant your business relationship with processors like Stripe or Adyen remains the same (I'm affiliated with this product)

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#22

Post by hmert »

Hello, (I’m co-founder of MonoPayments, white label payment platform for fintechs.)

If you want to pay less, you have to use local processors with local currencies. This would be a complex operation.

1. Establish a company at that jurisdiction 2. Make agreements with processors, it could be banks or wallet providers. 3. You need a treasurer (or CFO) 4. Foreign Exchange rates will be a concern after a while.

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#24

Post by tomnipotent »

Not at your volume. It would probably cost you more to switch than you'd save, considering the time and training investment involved.

Assuming $250k per year at $15/transaction gives ~16,666 transactions a year. With base Stripe pricing, that means you're paying $5k for the $0.30 per transaction fee and another $7.2k for the 2.9% interchange plus fee. So $12.2k in fees per $250k processed, or 4.9% of processed dollars. Adyen is probably going to be about the same given your volume.

It's important to know that Stripe charges the same fee even though the fee for processing American Express is different from Visa, which is different from Discover and all are more expensive than debit cards. If your business skews highly towards American Express, than Stripe is actually giving you the best rate you could hope for. If you're volume skews debit cards, than Stripe is giving you the worst rate.

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#25

Post by flangola7 »

tomnipotent wrote: post #24

Not at your volume. It would probably cost you more to switch than you'd save, considering the time and training investment involved. Assuming $250k per year at $15/transaction gives ~16,666 transactions a year. With base Stripe pricing, that means you're paying $5k for the $0.30 per transaction fee and another $7.2k for the 2.9% interchange plus fee. So $12.2k in fees per $250k processed, or 4.9% of processed dollar…

Why is American Express so expensive?

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#26

Post by riadsila »

Not sure if this previous thread from years ago will be of any use, sharing it just in case any of the alternatives are still relevant or could be of use for you: https://news.ycombinator.com/item?id=22596082

Mentions Adyen, Braintree, and Paddle

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#27

Post by dingi »

Depends on where you tap into the digital payments chain. At the highest level (with highest fees) are the payfacs (Payment facilitators). Above them are the payment acquirers with comparatively low fees, higher joining fees, more rigorous certification process and the PCI compliance is a chore you need to repeat every year. Above that is not that easy to tap into such as direct link to credit card networks and banks. At your volume, PayFac like Stripe is the best option IMO.

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#28

Post by navigate8310 »

flangola7 wrote: post #25
tomnipotent wrote: post #24

Not at your volume. It would probably cost you more to switch than you'd save, considering the time and training investment involved. Assuming $250k per year at $15/transaction gives ~16,666 transactions a year. With base Stripe pricing, that means you're paying $5k for the $0.30 per transaction fee and another $7.2k for the 2.9% interchange plus fee. So $12.2k in fees per $250k processed, or 4.9% of processed dollar…

Why is American Express so expensive?

In my country, they offer some of the best rewards rates and customer care services. Their no-frills chargeback protections and airport lounge network are somewhat better than what I have with my Visa card. However, Amex lacks offline acceptance and can be quite challenging to meet the "milestones" for annual fee waiver.

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#29

Post by tomnipotent »

flangola7 wrote: post #25
tomnipotent wrote: post #24

Not at your volume. It would probably cost you more to switch than you'd save, considering the time and training investment involved. Assuming $250k per year at $15/transaction gives ~16,666 transactions a year. With base Stripe pricing, that means you're paying $5k for the $0.30 per transaction fee and another $7.2k for the 2.9% interchange plus fee. So $12.2k in fees per $250k processed, or 4.9% of processed dollar…

Why is American Express so expensive?

It's how they pay for their best-in-class rewards and offerings. This means card holders are more likely to make big purchases on an Amex than other cards, and why many small ma n' pa shops don't accept them.

Re: Ask HN: What are some low cost payment processing alternatives to Stripe?

#30

Post by jesterson »

flangola7 wrote: post #25
tomnipotent wrote: post #24

Not at your volume. It would probably cost you more to switch than you'd save, considering the time and training investment involved. Assuming $250k per year at $15/transaction gives ~16,666 transactions a year. With base Stripe pricing, that means you're paying $5k for the $0.30 per transaction fee and another $7.2k for the 2.9% interchange plus fee. So $12.2k in fees per $250k processed, or 4.9% of processed dollar…

Why is American Express so expensive?

Their perks for cardholders are substantially better than VISA/MC in most cases
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