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Stripe increases price for business in the European Economic Area

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Re: Stripe increases price for business in the European Economic Area

#141

Post by pancrufty »

dahfizz wrote: post #102
Timshel wrote: post #79

Earlier quoted context omitted.

I wish those transaction cost would be made visible. Imo the seller should not care which card the client use, if it's more expensive to use a "premium" card then it should be made visible to the client and he should be the one to pay the overhead.

I don't see transaction fees as fundamentally different than any other cost to the business. Do consumers also need to know how much the business pays in electricity, or the rent the business pays?

Not the same. The business can choose rent and electricity provider, but can’t choose a customer’s card (except maybe rejecting a whole circuit)

Re: Stripe increases price for business in the European Economic Area

#143

Post by pancrufty »

doikor wrote: post #96
IshKebab wrote: post #83

Earlier quoted context omitted.

Yes this is all that needs to happen. The EU should mandate that sellers can pass transaction costs on to consumers if they want (but no more than transaction costs, looking at you airlines).

> EU should mandate that sellers can pass transaction costs on to consumers EU actually mandates the opposite. It is illegal to pass the transaction costs to the consumer. The price you see on an item has the be the final price you end up paying.

I love them for it. When I don’t live in Europe it’s infuriating to see the price levitate after every checkout step. Thankfully it’s still not as bad as it used to be like 10-15 years ago.

Re: Stripe increases price for business in the European Economic Area

#144

Post by krinchan »

scrollaway wrote: post #72
ptman wrote: post #66

Earlier quoted context omitted.

https://www.epicompany.eu/ and https://nordicpayments.eu/ instead of Visa/MC

Yup exactly, but you need to take that strategy and apply it beyond europe. For this you need local networks in the US as well for example. Right now, there aren't really any; some crypto based local networks but that's all. But the US is undergoing some serious banking network updates this year and that likely means some new local networks are being built. This idea will look very different by 2024 and maybe even be…

You're referring to the launch of FedNow, right? It's interesting because most of the analysis I've seen keeps assuming it'll be more B2B and that people will just continue to use P2P apps. However, I don't see any reason said apps won't move to FedNow themselves. The underlying ACH should be fairly easy to swap out with FedNow, right? Venmo and CashApp have only free money (in the form of lower fees and faster settlement) and better security to gain, it feels like.

Re: Stripe increases price for business in the European Economic Area

#145

Post by pancrufty »

throwaway67743 wrote: post #12

It says something when traditional banks are basically the same price now and are almost as good in features (and many other card processors are cheaper, especially if eg you stick to a processor in the EU for EU cards) - I'm not sure why anyone would pick Stripe anymore, especially as they have just as many "hidden" costs as others (eg fraud stuff)

Having seen many of these systems myself, I doubt they’re “almost as good in features.”

My European bank (one of the largest in my country) doesn’t accept passwords longer than 8 characters. Imagine how bad the rest of the systems is.

Re: Stripe increases price for business in the European Economic Area

#146

Post by psychlops »

bjackman wrote: post #10

I have been pondering transaction costs lately. Seems like this is an area where intervention could have massive impact: these costs are effectively a tax that incurs deadweight loss so according to prevailing economic theory if we can reduce it the whole economy should be catalysed. IIUC governments already introduce price caps for certain elements of this market but I think we could be doing more? Like mandating in…

Given any problem, someone will find use of authority as the answer.

Re: Stripe increases price for business in the European Economic Area

#147

Post by cma »

psychlops wrote: post #146
bjackman wrote: post #10

I have been pondering transaction costs lately. Seems like this is an area where intervention could have massive impact: these costs are effectively a tax that incurs deadweight loss so according to prevailing economic theory if we can reduce it the whole economy should be catalysed. IIUC governments already introduce price caps for certain elements of this market but I think we could be doing more? Like mandating in…

Given any problem, someone will find use of authority as the answer.

Solving coordination problems through voting. Something as fundamental as the payment system should have people competing on making the underlying processes more efficient, not building the biggest network lock in effects.

Re: Stripe increases price for business in the European Economic Area

#148

Post by Benjamin_Dobell »

thiscatis wrote: post #41
petesergeant wrote: post #31

> premium cards [are] commercial, corporate, or business cards issued by Visa and Mastercard [and attract more expensive fees, even compared to Amex] Does anyone know more about that? Why are they more expensive? Is there a different underlying cost structure, or simply price discrimination by some intermediary? There's more information on "premium cards" here[0], but it doesn't explain the price difference or why a…

Because they give more benefits (insurance, lounge access, cashback etc...) and someone has to pay for this (i.e. the merchants). For example R̶e̶v̶o̶l̶u̶t̶ ̶M̶e̶t̶a̶l̶ premium cards and corporate cards which offers benefits such as lounge access to pay-to-use lounges, travel insurance, cashback etc.. are mostly designed by the schemes in parternship with the issuing banks. Also note that mostly in the US and Europe…

Where are these fees documented?

Corporate cards, or cards with more "features" (lounge access, insurance etc.) tend to have yearly fees associated with them, at least in Australia. I was under the impression the customer covers the cost of these extras, not merchants.

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