221–230 of 237 posts
Stripe stopped being competitive when they began keeping all of the transaction fees, including a percentage of the entire transaction, when issuing refunds. A customer changed their mind... well you just lost a lot of money.
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Prices aren't set based on costs. Prices are set at the maximum the market will bear. If you've ever set prices for a product, you would see this yourself. Price*Volume=Revenue Consumers dont care if you can pay for the inputs to your product. They obtain a certain value from your product and have a certain expectation of what the price should be, and if your costs are above that, consumers are happy to watch you go…
> If you've ever set prices for a product, you would see this yourself. Price*Volume=Revenue If your market is completely elastic, then sure. But only hypothetical markets (and perhaps some fungible goods) are completely elastic. Most markets don’t have a perfect linear correlation between price and demand. The other things you’ve completely ignored, is the fact that interchange impacts all sellers equally. So as a c…
That's exactly my point.. You can't change the price without changing the volume.. and that's why you cant pass on costs. The item is already priced at the optimal point in the price-demand curve. Moving the price based on cost increases, only results in lost revenue. The only companies that are able to do that are the ones that haven't priced their goods correctly to being with.
"then it’s reasonable to expect consumers value perception to increase by a similar amount."
You seriously think consumers know when the prices of the inputs for an item change? And then they adjust their perceptions of the item based on their detailed knowledge of how the product is made? The average consumer doesn't know how anything is made or what any of the costs of an item are. Go ask some random people what they think a credit card costs merchants... nearly guaranteed you only get wrong answers.
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By charging exorbitant interest for folks who don't pay off their balance in full. Which kind of reminds me of SaaS products that offer a free tier to sell you on the premium subscriptions
I really doubt that many credit card holders are actually using the revolving credit in Europe. For starters in most European countries, you are probably not going to qualify unless you're rich enough to pay your bills in full every month.
Guessing you are in Germany and extrapolating?
It varies quite a bit by country. https://www.spendesk.com/blog/credit-card-statistics/
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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.
In US sales tax is made visible, i.e. it is not included in the listed price. And first thing foreign visitors do is complain about this.
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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.
You will find there is often a big difference between logging into the account and making any change or transaction. Getting the password right might give you account details and some basic transaction history, but it won't allow you to transfer money without 2FA.
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In US sales tax is made visible, i.e. it is not included in the listed price. And first thing foreign visitors do is complain about this.
That's not what visible means. Visible means a breakdown. List price should always include all fees.
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Iirc in the US at least the gov’t finally struck down the “must charge same as cash” requirement that the credit card companies were forcing on everyone. And inflation has given them incentive to start actually doing it - at least two restaurants here have a cash discount now.
So few places actually followed that rule anyway, especially every gas station.
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Why wouldn't small items have chargeback costs? Do credit cards ban chargebacks for them? If someone buys something cheap, it doesn't come, and the credit card company refuses to allow a chargeback, that's going to make some customers mad.
Would you really file the chargeback paperwork for a $1 purchase? Even if you're scammed, it's at the level where you say "I'll be careful next time" and move on.
* Money. This doesn't matter much too me, but it might for people who make a lot less than me. The comment I replied to was about anything less than $10, not about $1 specifically.
* Preventing future scams. By doing a chargeback against scammers, you're making it more likely they'll get banned. So you're helping to prevent other people from getting scammed in the future. It's a good deed. When I see phishing sites, I report them. Why wouldn't I report a scam?
* Revenge. Some people want to see the bad guys get punished.
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This appears to not be true, because this is specifically commercial cards, and not consumer cards. The correct answer seems to be this one: https://news.ycombinator.com/item?id=34691714
It literally says the same, the interchange in these is higher.
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"because high interchange + cashback creates a nasty regressive tax" There's an interchange surcharge for rewards cards. Stripe bundles this all together to make the pricing simpler.. but most merchants use traditional merchant accounts, and they are charged based on the type of card used. Edit: For example, here's visa's interchange fees: https://usa.visa.com/content/dam/VCOM/download/merchants/vis...
Doesn’t really change anything. VISA and Mastercard rules also prevent merchants from discriminating based on card type, either you except all VISA/Mastercard cards, or you except none. So the exact manner in which they’re billed to merchants is kinda irrelevant, the cost ends up being spread over all consumers, regardless of their ability to recover the money via cashback or rewards.
There are many companies discriminating on card type; not accepting debit cards, not accepting business cards (which have higher fees for the merchant), not accepting credit cards, not accepting foreign cards, not accepting certain BIN ranges.