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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

#231

Post by tluyben2 »

Thorrez wrote: post #228
rendaw wrote: post #184

Earlier quoted context omitted.

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.

I might. There are 3 reasons: * 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 dee…

I would not call it revenge but yes, if you do nothing because it is low value or not important enough for your time, bad people will do bad things more because they are not punished. I try to report spam to the registrar and hoster and I report fraud to the bank for that reason.

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

#232

Post by hocuspocus »

rootusrootus wrote: post #223
hocuspocus wrote: post #154

Earlier quoted context omitted.

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.

> I really doubt that many credit card holders are actually using the revolving credit in Europe. Guessing you are in Germany and extrapolating? It varies quite a bit by country. https://www.spendesk.com/blog/credit-card-statistics/

No, not in Germany. I still believe revolving credit cards aren't something targeted at people who'll miss paying their balance in full in most of continental Europe, and issuers can't really base their profitability on that alone.

Ironically enough that's why a company like Klarna became so big over here, the whole "buy now pay later" concept is completely new to most low-income customers.

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

#233

Post by avianlyric »

rgbrenner wrote: post #222
avianlyric wrote: post #219

Earlier quoted context omitted.

> 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…

"But only hypothetical markets (and perhaps some fungible goods) are completely elastic." 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…

> That's exactly my point.. You can't change the price without changing the volume.. and that's why you cant pass on costs.

In an elastic market. This is not true in non-elastic markets. Obvious example is the price of ERs in the US. Pricing doesn’t impact volume in a meaningful way, because people don’t decide get injured based on how much an ER costs.

> The item is already priced at the optimal point in the price-demand curve.

This is a bold claim. You’re gonna have to provide some evidence that every item in world is somehow priced at the optimal optimal point on the price-demand curve.

> The only companies that are able to do that are the ones that haven't priced their goods correctly to being with.

You are correct. But pricing at the optimal points is the rare exception. Most items aren’t priced at the optimal point, because discoing the optimal point is incredibly difficult, and not a requirement for a profitable business.

> You seriously think consumers know when the prices of the inputs for an item change?

No, that’s quite obviously not what I wrote. I think consumers perception of value increases as prices increase.

You seem to have a great deal of difficulty identifying the differences between theoretical perfect behaviour, and reality. Very few things in the real world closely match their theoretically perfect behaviour, so theirs inefficient and market gaps everywhere. Something things like interchange can capitalise on. If you’re gonna come back with another response about how this doesn’t work in a perfect market, then I recommend you don’t waste your time, I’m not interested in debating if reality and theory match.

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

#234

Post by avianlyric »

tluyben2 wrote: post #230
avianlyric wrote: post #162

Earlier quoted context omitted.

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.

> either you except all VISA/Mastercard cards, or you except none. 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.

This breaks the Visa Mastercard rule. For which merchants can and will be fined.

Obviously smaller merchants can get away with it, because nobody cares enough. But get big enough, and an issuer is going get upset and start demanding the Visa/Mastercard enforce their rules.

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

#235

Post by flangola7 »

diogocp wrote: post #189
flangola7 wrote: post #173

Earlier quoted context omitted.

I don't see a reason something as critical as transaction networks should remain privatized, it should be operated by society (via democratic government), not private interests. We don't have private corporations operate highways or the federal mail system. They may operate (heavily regulated) airlines, but not the traffic control that manages their interactions. Imagine having to pay a "takeoff clearance fee" or a t…

Private highways are very common in Europe. So is mail delivery by private companies (Deutsche Post is a big one). In Portugal, the mail company is private and 90% of the highways are operated by private companies. And this is a country where the Socialist party has been in power for 20 of the last 30 years.

That is highly surprising to me. How do you have 90% privatized highways without toll booths everywhere? Without a universal funding source like taxes how is construction and repair funded?

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

#236

Post by thiscatis »

petesergeant wrote: post #229
thiscatis wrote: post #216

Earlier quoted context omitted.

It literally says the same, the interchange in these is higher.

You attribute it to perks, which is not correct, or Amex and Diners Club would be more expensive. It's because interchange isn't regulated for commercial cards.

Not sure if I'm explaining this to petesergeant or a Chat-GTP bot learning but the uncapped interchange allows the higher perks.

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

#237

Post by julianwachholz »

avianlyric wrote: post #234
tluyben2 wrote: post #230

Earlier quoted context omitted.

> either you except all VISA/Mastercard cards, or you except none. 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.

This breaks the Visa Mastercard rule. For which merchants can and will be fined. Obviously smaller merchants can get away with it, because nobody cares enough. But get big enough, and an issuer is going get upset and start demanding the Visa/Mastercard enforce their rules.

Except when companies outright openly discriminate any form of payment other than cash with a surcharge that directly benefits the card networks because those players are huge and they don't want to miss out on this free money.

I'm mostly referencing Just Eat Takeaway dot com which have increased their online payment fees to 3% now (at least in CH) which is ridiculous because there's no way such a large player has such high fees with any acquirer.

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