They are doing a Paypal. How long have they been doing this?
Louis Rossmann won't be happy - https://www.youtube.com/watch?v=c1WPDVjXDj0
Stripe refunds: fees from the original charge are not returned
11–20 of 275 posts
Re: Stripe refunds: fees from the original charge are not returned
#12Some more context: this has been around for a couple years (for only new Stripe users). Payments are costing more to process. Card network fees have been gradually increasing over the years. Stripe has kept this at bay for its longtime users for as long as we could, even as it's been getting more expensive. But with the water rising across the whole pond, we sadly have to start charging for some of these things.
Why are payments costing more? Isn't technology lowering costs more and more for these companies? Is this just execs needing another summer home so they raise the prices to whatever they like?
Rewards cards that offer all sorts of perks. Cash back, travel bonuses, $500-$1k signup bonuses, etc.
Re: Stripe refunds: fees from the original charge are not returned
#13Some more context: this has been around for a couple years (for only new Stripe users). Payments are costing more to process. Card network fees have been gradually increasing over the years. Stripe has kept this at bay for its longtime users for as long as we could, even as it's been getting more expensive. But with the water rising across the whole pond, we sadly have to start charging for some of these things.
Why are payments costing more? Isn't technology lowering costs more and more for these companies? Is this just execs needing another summer home so they raise the prices to whatever they like?
I'm wondering if it has something to do with the increasing prevalence of rewards, which is driven by competition between issuers?
I mean, I get somewhere between 2% and 5% back on virtually everything I buy. On top of signup bonuses.
Whereas when I think back to 10 or 15 years ago, it seems like I usually got 1% back, and I still had cards that didn't offer any rewards back at all -- which is unthinkable to me today.
Just my anecdote, and I don't know if it's the main driver, but it certianly seems like rewards have become a much bigger thing.
Re: Stripe refunds: fees from the original charge are not returned
#14Some more context: this has been around for a couple years (for only new Stripe users). Payments are costing more to process. Card network fees have been gradually increasing over the years. Stripe has kept this at bay for its longtime users for as long as we could, even as it's been getting more expensive. But with the water rising across the whole pond, we sadly have to start charging for some of these things.
Why are payments costing more? Isn't technology lowering costs more and more for these companies? Is this just execs needing another summer home so they raise the prices to whatever they like?
Actually - it's mostly because of cost / benefit shifting.
A card can attract USERS by increasing the rewards it offers -> and charging MERCHANTS for the reward.
So visa infinite cards might charge a much higher swipe fee to a merchant, and then make available cash back + first party car insurance + lots of bennies to the holders of these "elite" cards.
They justify this to merchants by claiming that these "elite" users spend big bucks.
The reality - if users of cards were charged the actual swipe fee their card incurred -> they would push for SUPER low fees or switch to debit cards.
Many lucrative business depend on the person picking the service not being the one paying for it or the kickback going to someone other than one paying.
Re: Stripe refunds: fees from the original charge are not returned
#15This has been the case since early 2018. Accounts created before that were grandfathered in for fee refunds, but I don't have a grandfathered account, and therefore can't verify if that's still the case.
I have a grandfathered account from 2016, and I'm still getting the fee refunds.
Re: Stripe refunds: fees from the original charge are not returned
#16Some more context: this has been around for a couple years (for only new Stripe users). Payments are costing more to process. Card network fees have been gradually increasing over the years. Stripe has kept this at bay for its longtime users for as long as we could, even as it's been getting more expensive. But with the water rising across the whole pond, we sadly have to start charging for some of these things.
Don't those fees get refunded to Stripe in case of a refund, though?
If so, I'd imagine it's more fair to refund them completely, and instead increase the base fee for payments.
Re: Stripe refunds: fees from the original charge are not returned
#17Seems reasonable to me. The payment was successful, which is the service Stripe provides. Is this out of step with the industry at large?
I think it makes sense too, although from a slightly different perspective - that some work was done, and it’s additional work on Stripe (or Stripe’s systems) to refund or reverse a payment. Maybe a small fixed fee makes more sense than a percentage in this case, but either way, refunding a transaction still requires some effort.
Re: Stripe refunds: fees from the original charge are not returned
#18Seems reasonable to me. The payment was successful, which is the service Stripe provides. Is this out of step with the industry at large?
This is 100% common -
the cost to network is often both in forward and reverse side, though most card providers zero out benefits to users so I'm convinced have higher than appropriate margins here (not stripe)Re: Stripe refunds: fees from the original charge are not returned
#19Some more context: this has been around for a couple years (for only new Stripe users). Payments are costing more to process. Card network fees have been gradually increasing over the years. Stripe has kept this at bay for its longtime users for as long as we could, even as it's been getting more expensive. But with the water rising across the whole pond, we sadly have to start charging for some of these things.
Could you partially return the fee, such that the transaction is done "at cost" for Stripe?
Re: Stripe refunds: fees from the original charge are not returned
#20Recently got hit with this with QuickBooks. They actually charged me a fee to refund that was higher than the original fee charged. They think they deserve 3.5% on top of the initial 2.9% to send money back.