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Stripe Corporate Card

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Re: Stripe Corporate Card

#11

Post by jackweirdy »

Scirra_Tom wrote: post #4

1-2% cashback is highly appealing from here in the UK but shame to see is US only. Anyone shed any light on why getting cashback cards in the UK is rare compared to elswehre? Personally I found Tandem which gives 0.5% cashback which is nice but not much. Business wise we decided to use Amex as the rewards are OKish (comes out to like ~0.5% again I think?) and being able to pay for US services on our USD card is nice…

European interchange fees are capped at 0.3%, so unless you are making money hand over fist from other means, giving back more than 0.5% cashback rarely makes financial sense.

Amex own-branded cards are excluded from this as they avoid the three-party relationship that falls under these rules, but some (e.g. airline amex cards) are capped at 0.3% interchange fees. See this article for more info https://www.headforpoints.com/2018/02/08/american-express-eu...

Re: Stripe Corporate Card

#13

Post by tptacek »

mikedouglas wrote: post #9
julianozen wrote: post #7

Does anyone know how similar this is to Brex? Related: what make Brex so special as a credit card for startups?

Brex differentiated itself by using your bank history to determine your credit limit, meaning that founders didn't need to personally guarantee their corporate cards early on in a company's life. It seems like Stripe is doing something similar.

But this relies on the startup's Stripe history, right? This is more a benefit for existing Stripe customers than it is a broadside at the entire corporate card industry.

Re: Stripe Corporate Card

#14

Post by gringoDan »

Scirra_Tom wrote: post #4

1-2% cashback is highly appealing from here in the UK but shame to see is US only. Anyone shed any light on why getting cashback cards in the UK is rare compared to elswehre? Personally I found Tandem which gives 0.5% cashback which is nice but not much. Business wise we decided to use Amex as the rewards are OKish (comes out to like ~0.5% again I think?) and being able to pay for US services on our USD card is nice…

Credit card transaction fees are way higher in the US than in the UK. This allows the companies budget for much higher cashback earning, mileage programs, etc.

Here is a great post that explains the economics of credit card rewards: https://www.reddit.com/r/churning/comments/5oucdq/the_econom...

Re: Stripe Corporate Card

#15

Post by jbverschoor »

Scirra_Tom wrote: post #8
jbverschoor wrote: post #3

Stripe is doing some great stuff. But I’d be weary to put all eggs in one basket.

Tend to agree but I don't think a card is that big of a deal as in this case it's less Stripe owned as it's a Visa card so pretty sure you'd have some additional protection there.

Let’s say you have an issue because stripe suddenly you’re business is fraudulent (read: you got great coverage on HN and suddenly have 1000 extra customers) Stripe flags you and blocks your account. Done. Now your income and money to spend depends on their customer service.

Many people have had the same with PayPal, and some with regular banks.

So yes, take the card, but also take 5 other cards.

Re: Stripe Corporate Card

#18

Post by tialaramex »

Scirra_Tom wrote: post #4

1-2% cashback is highly appealing from here in the UK but shame to see is US only. Anyone shed any light on why getting cashback cards in the UK is rare compared to elswehre? Personally I found Tandem which gives 0.5% cashback which is nice but not much. Business wise we decided to use Amex as the rewards are OKish (comes out to like ~0.5% again I think?) and being able to pay for US services on our USD card is nice…

As I understand it usual US de-regulation means card issuers get to charge the merchant more or less whatever they want. So if they charge your grocery store $4 for the transaction when a rival does it for $1 then giving you $2 "cash back" is very affordable for them.

Re: Stripe Corporate Card

#19

Post by mytailorisrich »

Scirra_Tom wrote: post #8
jbverschoor wrote: post #3

Stripe is doing some great stuff. But I’d be weary to put all eggs in one basket.

Tend to agree but I don't think a card is that big of a deal as in this case it's less Stripe owned as it's a Visa card so pretty sure you'd have some additional protection there.

A potential issue that might be overlooked, that also exists when dealing with your bank and depends on the T&Cs, is a right of set off over the whole relationship.

This is a right to recover money you owe on one account from another account you have with them.

It's likely (though I have not read the T&Cs) that they have a clause that they can recover money you owe on this credit card from your Stripe payment account.

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