Does this make something like Monzo seem trivial?
Like it seems like everything Monzo has done as easy to replicate (not to do, im sure a lot of time and effort went into the guys at Stripe making this).
Stripe Issuing – An API for creating physical and virtual cards
41–50 of 217 posts
Re: Stripe Issuing – An API for creating physical and virtual cards
#42I wonder why this isn't standard service from every credit card provider, ideally as an app. It would make the CC numbers from database leaks a less valuable target since users could easily compartmentalize for every transaction.
It's a massive undertaking for very little benefit. And there's a large group of card holders who hate when their number changes.
Re: Stripe Issuing – An API for creating physical and virtual cards
#43Does this make something like Monzo seem trivial? Like it seems like everything Monzo has done as easy to replicate (not to do, im sure a lot of time and effort went into the guys at Stripe making this).
(I work on Issuing.)
Not really. We make it easy for institutions like Monzo to issue and manage cards, but I imagine that's just a fraction of what they've needed to build to run a regulated bank, service their customers, etc etc.
Re: Stripe Issuing – An API for creating physical and virtual cards
#44Earlier quoted context omitted.
(I work on Issuing.) The cards draw from a Stripe balance, which can be funded from a connected bank account (or ordinary Stripe charges).
If I use my normal VISA card at a retailer they pay an interchange fee right? If I create a physical card through stripe, and I use that card at a retailer does the retailer still pay a interchange fee? If so who does that go to? How does that system work?
Normal interchange would apply to the merchant but for debit cards it's pretty small. Interchange accrues to the issuer which in this case appears to be Stripe (and/or its issuing partner).
Re: Stripe Issuing – An API for creating physical and virtual cards
#45Are these credit or debit cards? Asking because I've previously had issues with virtual debit cards where merchants "force posted" transactions through.
Looks like debit, the docs mention that purchases debit your stripe account balance.
That doesn't tell you anything about which network and rules the transactions go through on, in theory they can process it as credit even if they require it to be prefunded
Re: Stripe Issuing – An API for creating physical and virtual cards
#46Are these credit or debit cards? Asking because I've previously had issues with virtual debit cards where merchants "force posted" transactions through.
Have only spent 10 minutes skimming through various docs.
Seems like it's upto the businesses to treat an issued card as debit or credit. I can even see use cases for overdraft.
Below is a snippet from their doc[1]
> Any use of an issued card that results in funds entering or leaving your Stripe account
Here's what I've understood so far.
1. Businesses create, maintain and own customer accounts. It's upto the businesses to figure out how to get money from the customers. Could be prefunded (i.e., debit card) or postpaid (i.e., credit card).
2. Said business then creates cards and associates them with the above customer accounts and issues them that card.
3. Customers are now enabled to use those card wherever credit/debit cards are accepted.
4. Businesses need to maintain balance with Stripe. Stripe deducts from this account upon successful authorisation.
5. Now as I've mentioned in #1 it's upto the business to figure out a way to charge the customer.
Money movement is happening in two steps.
1. Business account -> Merchant (via stripe).
2. Consumer -> Business (Stripe isn't involved here).
Whether #2 happens before or after determines if the card is a debit card or credit card respectively.
So, what Stripe has done essentially is connect accounts holding money with rest of the world. I.e., anyone can now become a bank, in a sense.
In my previous job my team worked with a similar third party provider to launch a virtual card product[2]. But what Stripe has done is game changing.
[1] https://stripe.com/docs/issuing/transactions [2] https://www.freecharge.in/mobile/freecharge-go
Edit: Minor correction.
Re: Stripe Issuing – An API for creating physical and virtual cards
#47Would these cards work with more vendors than Privacy.com cards? Many web services, for example, reject Privacy cards because they show up as "prepaid" cards.
Re: Stripe Issuing – An API for creating physical and virtual cards
#48Does this make something like Monzo seem trivial? Like it seems like everything Monzo has done as easy to replicate (not to do, im sure a lot of time and effort went into the guys at Stripe making this).
It's not really the same. Monzo's a bank capitalising somewhat on UK Open Banking legislation[1] and the fact that traditional banks are very slow to move with the times. It's not a SaaS product, they're likely one of if not the first movers in the market. There are competitors (Monese, Tide for business, N26 is coming at some point soon). UK fintech is pretty vibrant.
You would hope that Monzo is easy to replicate well because that means you have more modern banks to choose from.
Re: Stripe Issuing – An API for creating physical and virtual cards
#49Congrats on the new product!
Do you have any timeline on when you'll start offering your services in Poland? I'm always amazed at the quality of your offering, but always sad that I can't use them.
Re: Stripe Issuing – An API for creating physical and virtual cards
#50Would this work in conjunction with Stripe Connect? E.g. for a marketplace-like service but instead of sending payouts, issue custom cards?