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Stripe increases fees for EU and UK-based businesses in April

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Re: Stripe increases fees for EU and UK-based businesses in April

#51

Post by gggggg5 »

capableweb wrote: post #4

Some European alternatives you might be able to find/negotiate better fees with: - mollie (Netherlands) - adyen (Netherlands) - Klarna (Sweden) - Paylike (Denmark) - Mangopay (Luxembourg) - Quickpay (Denmark) (added in edit) The ones I've tried of those, have an OK development experience, maybe not as polished as Stripe, but much better than the alternatives that were around before Stripe (huge hassle back then). Ide…

>This strikes me as weird. User buys something from me, regrets it and issues a chargeback, dispute gets started and bank says I did nothing wrong, so the charge still sticks, but Stripe gets to keep the fee for handling the dispute?

You should include this in your contract terms with the customer and collect the dispute fee from them.

It's not reasonable of you to expect Stripe to just absorb this cost.

Re: Stripe increases fees for EU and UK-based businesses in April

#52

Post by joering2 »

capableweb wrote: post #4

Some European alternatives you might be able to find/negotiate better fees with: - mollie (Netherlands) - adyen (Netherlands) - Klarna (Sweden) - Paylike (Denmark) - Mangopay (Luxembourg) - Quickpay (Denmark) (added in edit) The ones I've tried of those, have an OK development experience, maybe not as polished as Stripe, but much better than the alternatives that were around before Stripe (huge hassle back then). Ide…

> User buys something from me, regrets it and issues a chargeback, dispute gets started and bank says I did nothing wrong, so the charge still sticks, but Stripe gets to keep the fee for handling the dispute?

I am surprised how little Stripe charges. I processed close to 100MM since 2012 via different merchants, including Polcard, banks such as Harris, Wells, BOA, etc, and even 10 years ago typical fee was $35. And no, they never give you the fee back; if you win they give you the charge amount back, but the processing fee always remained with MSP.

On the upside, over the years credit cards vendors made it harder to file the dispute. Yes its easier to do it online with few clicks, but that's not a dispute yet. These days most people sit in banks and research into charge, including calling merchant, before they submit a CB with the card system.

Re: Stripe increases fees for EU and UK-based businesses in April

#53

Post by 02thoeva »

sleepyhead wrote: post #3

"Businesses in the EEA who are paying out in USD to a US-domiciled bank account will now incur a 1% fee, with a minimum fee of US$2.50 per payout." This is absurd. A 1% fee to transfer USD to a USD bank account? The alternative is to charge in another currency - which Stripe will put a 2% currency fee on. This is already on top of their expensive transaction costs. Will actively look for alternatives now.

Same here. This is a massive dent in any of our remaining profit. Realistically we'll need to look to leave

Re: Stripe increases fees for EU and UK-based businesses in April

#54

Post by pjc50 »

02thoeva wrote: post #49

"UK businesses who are paying out in USD to a US-domiciled bank account will now incur a 1% fee, with a minimum fee of US$2.50." So if we get paid out a USD payment, into a USD account. We get charged just because we're registered in the UK? That's a huge impact on our business.

Presumably you've got a UK bank account, so you can just use that and take on the currency risk and transaction fees of Wise or similar?

Re: Stripe increases fees for EU and UK-based businesses in April

#55

Post by traceroute66 »

capableweb wrote: post #4

Some European alternatives you might be able to find/negotiate better fees with: - mollie (Netherlands) - adyen (Netherlands) - Klarna (Sweden) - Paylike (Denmark) - Mangopay (Luxembourg) - Quickpay (Denmark) (added in edit) The ones I've tried of those, have an OK development experience, maybe not as polished as Stripe, but much better than the alternatives that were around before Stripe (huge hassle back then). Ide…

> - Klarna (Sweden)

Erm, isn't Klarna a BNPL company ?

Important not to conflate BNPL with merchant services (card payments).

Re: Stripe increases fees for EU and UK-based businesses in April

#56

Post by pjan »

maest wrote: post #32

> payouts will be higher due to increases in network costs (in recent years, major card networks have introduced several new fees and increased existing fees), as well as increases in underlying service costs. Can someone from the industry offer more colour on what this actually means? It strikes me that pricing for companies like Stripe should go down, not up in the long run. They're fairly well insulated from infla…

Banks starting to charge more for (crossborder) transfer, Visa/MC charge more for tokenized card payments, which they mandate adoption of, and most likely more of this.

Re: Stripe increases fees for EU and UK-based businesses in April

#57

Post by [deleted] »

01acheru wrote: post #2

Something needs to change in the digital payments sector. 1.5% is ok-ish but 3.25% to accept foreign cards in the EU is a lot of money! I understand that costs are higher when using credit cards because of the credit part that introduces risk, but in my case for example I have a debit card that runs also over Mastercard, so either I have the money or I don't. Why should a merchant be charged the same fee of using a r…

[deleted]

Re: Stripe increases fees for EU and UK-based businesses in April

#58

Post by carlosjobim »

capableweb wrote: post #21
mytailorisrich wrote: post #19

Earlier quoted context omitted.

What's the impact of not disputing chargebacks? If I'm going to be charged 20 euros whether I succeed or not then for small disputes I may not bother spending the time to submit evidence anymore... Edit: I see that they have a Chargeback Protection product with costs 0.4% per transaction in which case they " cover the disputed amount and waive any dispute fees without needing to submit any evidence " (another comment…

The fee gets taken regardless. Also, too many disputes (guessing overturned disputes are calculated differently than uphold ones) can lead to further fines: > If the dispute activity for your business exceeds the thresholds set by the networks for a prolonged period of time (usually multiple months), you might be subject to fines. https://stripe.com/docs/disputes/measuring

>The fee gets taken regardless.

The fee gets paid back in full to you by Stripe if you win the dispute.

Re: Stripe increases fees for EU and UK-based businesses in April

#59

Post by smca »

capableweb wrote: post #39
smca wrote: post #31

Earlier quoted context omitted.

Stripe is charged every time a user faces a dispute. These fees have been increasing in recent years. Managing disputes is also a costly and manual process for our users. So we’ve invested heavily in ways to help mitigate disputes from occurring in the first place with Stripe Radar (incl. by default), or by using Chargeback Protection (where we cover the disputed amount and waive any fees without needing to submit an…

> Stripe is charged every time a user faces a dispute. Is this charge returned to Stripe if the bank rules in the favor of the Stripe user? Or did that change recently as well, as now Stripe won't hand back the fee in case the dispute is overturned. Thanks a lot for jumping into the thread with some more facts.

That's right. Stripe is charged regardless of the dispute outcome (the networks don't refund the fee). So our focus is twofold: prevent disputes from happening in the first place and help users manage them if/when they occur.

Re: Stripe increases fees for EU and UK-based businesses in April

#60

Post by anovikov »

capableweb wrote: post #4

Some European alternatives you might be able to find/negotiate better fees with: - mollie (Netherlands) - adyen (Netherlands) - Klarna (Sweden) - Paylike (Denmark) - Mangopay (Luxembourg) - Quickpay (Denmark) (added in edit) The ones I've tried of those, have an OK development experience, maybe not as polished as Stripe, but much better than the alternatives that were around before Stripe (huge hassle back then). Ide…

Names of the last 2 and maybe 3 sound very Russian to me. Are they just registered there, but really these are Russian own businesses?
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