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Does anyone know if one can add a German USD-bank account to Stripe by now? (Was not possible a year ago)
Does the 1% fee also apply if the company is based in Switzerland? (strictly not the EEA)
Does anyone at which MRR scale one can negotiate fees down with Stripe?
Earlier quoted context omitted.
In theory, they can't. But no one is enforcing it because there is a plan to change the law.
No. Technically it's illegal to provide such service, not receive it. Fun fact, this very website is not GDPR compliant. I've never ever seen a cookie notice on HN, which is legally required. Of course, none of this is relevant, because AFAIK HN has no physical presence in the EU, but still, this site is not GDPR compliant, which just outlines how stupid GDPR actually is.
For clarity: it isn't always required. Only if you have third party (tracking) cookies.
I don't know about HN. But its perfectly possible to have analytics, ads and other functional cookies, without pestering your users with cookie popups.
Again: cookie popups and concent-banners aren't required. They are only required if you have "invasive" tracking in place.
e.g. I've worked on web-apps that were tracked by a selfhosted matomo, by plausible or some other tracking, that did not have any GTM or other tag-managers, that had no ads or only ads which were served from their own domain and without any 3rd party trackers, lacked all the GAFAM-pixels, had their fonts and other assets self-hosted (or on a simple, non-tracking CDN) and so on. Non of these needed any form of banner, popup or wizard.
I wonder if everyone will end up with the apple model of only getting 70% and letting some huge conglomerate fight over fees, or just vertically integrate.
I’m not a fan of government regulation but this is an area where it may be worth having some digital cash mediated exchange where the transaction fees are meant to be absurdly low, like 1% or 5 cents whichever is lower. It would provide all the insurances of cash, so none, but would be a strong financial infrastructure that helps consumers and business.
This has been my hope for crypto since 2009, but the fees have always been higher than visa for consumer purchases.
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…
My years in fintech have taught me that it'll be very difficult to get these charges down without legislation. What they are is, essentially, insurance. For Visa/MC, "running the network" at cost is possible on much less money, but the network involves a lot of elements along the chain that can get transactions reverted. The "insurance" (1-3% of tx) pays for the legal-adjacent issues related to handling those transac…
In Switzerland Stripe is already 2.9% + CHF0.30 which is higher than the new rate in the EU. If you want a local solution that also can do Twint (Swiss p2p payments) without extra contracts then I would recommend you try Payrexx[1]. Per transaction fees are also less than what Stripe is charging although you have a monthly fixed fee. [1] https://www.payrexx.ch
We're outside the EEA cap on interchange fees, that's not surprising.
> 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…
About 85% of payment fees are taken by the bank that issues the credit cards (this portion is called interchange). The remaining 15% is split between the card network and the merchant acquirer (in this case Stripe).
Stripe collects some amount of of money from their merchant customers for each transaction. They could set their take rate to be whatever they’d like it to be, this is and unregulated part of the market and is the reason you hear about crazy 10%+ fees for porn, gambling, etc. websites.
Stripe then sends a subset of that fee (interchange plus a network fee) to Visa. Visa has a public ratebook saying exactly how much Stripe needs to send them for a ton of different kinds of transactions.
Visa keeps their fee and passes the interchange to the issuing bank and the transaction is settled.
Issuing banks feel like they “earn” interchange by acquiring customers and taking on their credit risk.
Now it’s important to remember that until very recently, Visa was wholly owned by the banks. This is because Visa is basically a “don’t shoot the messenger” actor who acts on the behalf of banks while taking a relatively small part of the pie for themselves.
Now, on to premium cards. One of the things banks have started to do recently is say “Hey, we acquire really good customers and we give them airline miles so they use their cards way more than they would otherwise. We should be compensated for that!”
The same thing happens for corporate cards, except worse since most regulations on interchange target consumer cards.
What that looks like in practice is new classes of Visa cards (Google: Visa Infinite) that have higher interchange rates (because the banks do all the hard work of having rich customers). Because Visa is a “neutral party,” they can get away with “if you want to accept any Visa cards, you have to accept them all.”
Therefore, cash/debit consumers continue to subsidize lavish vacations and corporate spend for the wealthy, because of course they do.
> Dispute fees (also known as chargebacks) will increase from €15 to €20. Due to costs for managing dispute evidence submissions (regardless of outcome), we'll no longer refund this fee if the customer's bank resolves the dispute in your favor. > If you or your users have an account located in an EEA country that has not adopted the Euro, here are the fixed fees of €20 in local currencies: Bulgaria: ЛВ40; Czech Repub…
That merchants hold almost 100% of the liability for fraud even if they do everything "right" to vet a transaction is crazy to me. The other parties (issuing bank, payment processor, payment network) are in a much better position to combat and detect fraud, since they see ALL the transactions. But the incentive to do better is low, since the merchant not only holds the bag, but sends them a penalty fee.
My business does most of it's sales in USD and pays out to a US bank account, I don't understand this fee at all. Just because they can I guess? Stripe is really becoming the new PayPal. Will definitely be exploring options to move to Adyen or continue moving more customers over to Paddle as we've found Stripe to be increasingly frustrating to deal with.
Now we're looking at 3.25% + £0.20 for the card payment in the US, 0.5% for Billing to handle subscriptions, 1% to payout, 0.4% if you want invoices, 0.5% if you need to handle sales tax. Already at 5.65% + £0.20 - that's without any of the paid radar tools.