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Stripe increasing "instant payout" fees by 50%

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Re: Stripe increasing "instant payout" fees by 50%

#41

Post by toomuchtodo »

internetter wrote: post #40
toomuchtodo wrote: post #23

Earlier quoted context omitted.

Stripe could choose to support FedNow instant payments and push these funds for pennies (up to $100k at a time), assuming the receiving institution hosting the deposit account(s) is set to receive on those rails. They would arrive within 20 seconds, per FedNow’s SLA. Only costs ~$25/month to plug into these rails, plus a few cents per transaction. https://www.frbservices.org/financial-services/fednow/organi... https:…

> Stripe could choose to support FedNow But then they wouldn't be able to charge more fees

Indeed, that was where the comment was leading.

Re: Stripe increasing "instant payout" fees by 50%

#42

Post by ffpip »

BillyTheKing wrote: post #34
tananaev wrote: post #4

Why is this such an important news? Do people regularly use instant pay out? I would think that it's mostly for emergency situations. Normal payout is still free.

for Fintechs who're using Stripe as a way to allow users to purchase stock/remittances/e-wallet balances etc. instant payouts are very important since in most cases people who load with stripe also consume those funds on the platform instantly

Won't they have a rolling period, since a lot of customers just add funds and might not use it?

So you can use the balances from the people who added money 2 days ago, today.

Re: Stripe increasing "instant payout" fees by 50%

#43

Post by toomuchtodo »

tiffanyh wrote: post #30
toomuchtodo wrote: post #23

Earlier quoted context omitted.

Stripe could choose to support FedNow instant payments and push these funds for pennies (up to $100k at a time), assuming the receiving institution hosting the deposit account(s) is set to receive on those rails. They would arrive within 20 seconds, per FedNow’s SLA. Only costs ~$25/month to plug into these rails, plus a few cents per transaction. https://www.frbservices.org/financial-services/fednow/organi... https:…

Interesting to see from that list that Bank of America, Citigroup, Capital One & PNC missing from the list. Appears they are still lagging in adopting FedNow (while Wells Fargo and US Bank have adopted)

Congress directed the Fed to create FedNow so the largest commercial banks couldn’t gate smaller regional banks access to real time payments via the private consortium The Clearinghouse (owned by the banks you list). FedNow directly competes with this private network. Think what IRS’ Direct File is to TurboTax, reducing unnecessary economic drag at scale.

Re: Stripe increasing "instant payout" fees by 50%

#44

Post by internetter »

xyst wrote: post #22
tananaev wrote: post #4

Why is this such an important news? Do people regularly use instant pay out? I would think that it's mostly for emergency situations. Normal payout is still free.

I think stripe was a YC funded company at some point. Algos on hn pump them hard. Founder still lurks HN as well.

I get stripe was YC, but its basically handling the entire SaaS economy at this point, and then some. 1 trillion dollars flew through the platform in the past year, which is similar to paypal

Re: Stripe increasing "instant payout" fees by 50%

#45

Post by gnicholas »

What would be the reason for them to boost this fee right now? Is it just a pure profit play? That is, they think they can extract more cash from the people who are reliable instant-payout users (rather than losing them to standard payouts)?

Does this portend anything for the company, in the way that not backfilling positions means that layoffs may be imminent? Or perhaps a corporate transaction like an IPO?

Re: Stripe increasing "instant payout" fees by 50%

#46

Post by mtnGoat »

adolph wrote: post #11
colecut wrote: post #5

Earlier quoted context omitted.

That is what a 50% increase means.

Kinda. To the degree that the object of increase is also a percentage the statement “increasing X (where x is quantified as a pct) by Y %” could mean that X of 20% is increased to 70% or to 30%. It would be more clear to state “ X increases from Y % to Z %.”

Math doesn’t do “kinda”. If you are paying $100 for something, and then it is $150, that’s is a 50% increase and is an undeniable fact.

Re: Stripe increasing "instant payout" fees by 50%

#47

Post by ffpip »

DANmode wrote: post #28
tananaev wrote: post #4

Why is this such an important news? Do people regularly use instant pay out? I would think that it's mostly for emergency situations. Normal payout is still free.

Ask your Uber driver on a Thursday! I've met drivers who have had to pay out multiple times per day.

Uber can easily just have 2 days of revenue ready in cash (or even a loan will be much cheaper than 1.5%) to not pay 1.5% every time.

Re: Stripe increasing "instant payout" fees by 50%

#48

Post by immibis »

notatoad wrote: post #16
tananaev wrote: post #4

Why is this such an important news? Do people regularly use instant pay out? I would think that it's mostly for emergency situations. Normal payout is still free.

I don't think the bar for appearing on the front page of HN is "important news" This is mildly interesting, and maybe important for a few people. That's enough.

It's apparently lower than "I made a raycaster in 256 bytes" and higher than "I got banned from Stack Exchange for not supporting Israel". I can't really tell where the bar is.

Re: Stripe increasing "instant payout" fees by 50%

#49

Post by mike_d »

gnicholas wrote: post #45

What would be the reason for them to boost this fee right now? Is it just a pure profit play? That is, they think they can extract more cash from the people who are reliable instant-payout users (rather than losing them to standard payouts)? Does this portend anything for the company, in the way that not backfilling positions means that layoffs may be imminent? Or perhaps a corporate transaction like an IPO?

For any payment processor part of the fees you pay go to offsetting fraud (it is a cost just like servers or people).

Instant payout is much riskier because if a bad actor is using Stripe to cash out stolen credit cards they have less time for the banks to detect and report it before the money is gone. As a result it has a higher cost to the company.

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