Would this work in conjunction with Stripe Connect? E.g. for a marketplace-like service but instead of sending payouts, issue custom cards?
That would be a great use case for this.
Stripe Issuing – An API for creating physical and virtual cards
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Re: Stripe Issuing – An API for creating physical and virtual cards
#62Would 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.
This is my question too. I want to know how these generated Stripe cards are classified by the major credit card processors, because generated cards often get declined if determined to be temporary/gift cards.
Re: Stripe Issuing – An API for creating physical and virtual cards
#63How is the balance of the card established? Is it just paid from a connected bank account similar to a chargeback after a payout has been already paid into a bank account?
(I work on Issuing.) The cards draw from a Stripe balance, which can be funded from a connected bank account (or ordinary Stripe charges).
Hey Lachyg - it seems that this is designed party to allow companies to issue cards on behalf of their customers. Is there a way to draw the funds directly from the customer's checking account? Potentially being on the hook for a charge if something goes funky with the customer seems like a big risk for the Stripe Issuing user.
Also, my understanding of payments is that the issuing bank is a big recipient of the fees that merchants pay. (This is of course what makes rewards cards possible.) In this case, Stripe is the issuing bank, so presumably gets a big chunk of the fees. Are there plans to share that with the Stripe Issuing developer? (For example, let's say I plan to launch the Zip Line Adventure Bonus Card - ZLABC. For every dollar a ZLABC customer spends, they get a point, and after 10,000 points I pay for them to go on a zip line adventure at a partner park. As a normal bank, I could fund that because I get somewhere in the 1%-2% of each transaction that my customer spends. In this case, Stripe gets it, but if Stripe shares some of that with me, I could find my wacky wimpy rewards card idea.)
Re: Stripe Issuing – An API for creating physical and virtual cards
#64I can't even imagine how much work went into this. Stripe does a great job of tackling the toughest problems and making it looks easy!
I actually think they might just be proving how easy it really is... compared to the longtime incumbents who do their best to make it look hard (or do it the hard way), and charge appropriately. Which doesn't take anything away from the accomplishment.
Re: Stripe Issuing – An API for creating physical and virtual cards
#65Earlier 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?
Why would the interchange fee be any different or get paid to anyone else in this instance?
Re: Stripe Issuing – An API for creating physical and virtual cards
#66Re: Stripe Issuing – An API for creating physical and virtual cards
#67That’s awesome. I wonder how easy would it be to code an easy service that generates a different card for every subscriptions. No more hassle to cancel this gym membership!
Except a declined payment doesn’t take you off the hook for paying what is owed, so you could still find yourself in collections.
Re: Stripe Issuing – An API for creating physical and virtual cards
#68This is really impressive, like the rest of the Stripe API! Although many people here are asking about creating virtual banks and issuing cards to customers, it appears that the intended audience of this API is a business that has a Stripe account, that wants to be able to issue cards to employees/trusted officials that charge against that single Stripe account. There is no mention of issuing cards to external custom…
(I work on Stripe Issuing.)
We've been primarily focused to date on companies where issuing cards is core to providing their business to customers, for example a startup that provides expensing customers, or a platform that needs to purchase goods in the real world. We're less focused on a business just using it for their own expensing (as we don't have receipt upload functionality, etc).
To your two other questions though:
(1) Could users approve things in real time? Sort of. We provide the ability (as you noticed) through API, but it needs to be responded to in (2) Could this be linked to an external bank account? Again, sort of. To get in the weeds: as soon as we approve an authorization, we're on the hook for those funds. A debit to an external balance (or bank account) may fail and Stripe would be on the line. This is why we typically require funds to be in a Stripe account prior to purchases taking place.
Re: Stripe Issuing – An API for creating physical and virtual cards
#69I can't even imagine how much work went into this. Stripe does a great job of tackling the toughest problems and making it looks easy!
I actually think they might just be proving how easy it really is... compared to the longtime incumbents who do their best to make it look hard (or do it the hard way), and charge appropriately. Which doesn't take anything away from the accomplishment.
Considering how slow banks move on tech, I think this is exactly right.
Re: Stripe Issuing – An API for creating physical and virtual cards
#70Earlier quoted context omitted.
That doesn't answer the question of which network and what rules the transaction is governed by.
About the network they are quite clear right upfront. > "Stripe Issuing is certified directly with all major card networks as an issuing processor, which ensures reliability and rapid feature releases" As for the rules I guess the business needs needs to adhere to the rules of whichever country it operates out of. Don't see Stripe helping there. They have built the roads, it's upto the driver to procure valid license…
That literally gives zero information about whether it's processed as debit or credit. There are very different sets of rules depending on which one it is.