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Gov.uk has replaced Stripe with Dutch provider Adyen

theregister.com

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Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#61

Post by colechristensen »

fragmede wrote: post #57
colechristensen wrote: post #54

Earlier quoted context omitted.

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

Except in the US, it does. Depending on the card, it can cost as much as 4.5% (or more!) to run the card. You can argue that it shouldn't, but that's a different statement than it doesn't.

uh, I'm including the card issuers as participants in this multi-party scam

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#62

Post by bijowo1676 »

switz wrote: post #60
colechristensen wrote: post #54

Earlier quoted context omitted.

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

Can someone explain to me if EU card transactions are capped, why Stripe charges me (US) the full ride on my EU customer's cards? In fact, I get charged even more for EU cards – perhaps as much as 2.5% extra. I just checked and I get charged ~8% in fees on a 10 euro transaction on Stripe. Of course some of that is the low transaction amount (flat 0.30), but it's brutal for a small business like myself. 2.9% + 1.5% (i…

perhaps they are capped only for EU merchants, because EU government works to protect their own companies and citizens from foreign artificial unregulated monopolies.

in US, the government is more protective of private monopolies due to lobbying

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#63

Post by colechristensen »

switz wrote: post #60
colechristensen wrote: post #54

Earlier quoted context omitted.

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

Can someone explain to me if EU card transactions are capped, why Stripe charges me (US) the full ride on my EU customer's cards? In fact, I get charged even more for EU cards – perhaps as much as 2.5% extra. I just checked and I get charged ~8% in fees on a 10 euro transaction on Stripe. Of course some of that is the low transaction amount (flat 0.30), but it's brutal for a small business like myself. 2.9% + 1.5% (i…

You're not in EU so the full stack is happy to charge you whatever it can.

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#64

Post by sph »

switz wrote: post #60
colechristensen wrote: post #54

Earlier quoted context omitted.

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

Can someone explain to me if EU card transactions are capped, why Stripe charges me (US) the full ride on my EU customer's cards? In fact, I get charged even more for EU cards – perhaps as much as 2.5% extra. I just checked and I get charged ~8% in fees on a 10 euro transaction on Stripe. Of course some of that is the low transaction amount (flat 0.30), but it's brutal for a small business like myself. 2.9% + 1.5% (i…

Uh… more profit?

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#65

Post by era-epoch »

switz wrote: post #60
colechristensen wrote: post #54

Earlier quoted context omitted.

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

Can someone explain to me if EU card transactions are capped, why Stripe charges me (US) the full ride on my EU customer's cards? In fact, I get charged even more for EU cards – perhaps as much as 2.5% extra. I just checked and I get charged ~8% in fees on a 10 euro transaction on Stripe. Of course some of that is the low transaction amount (flat 0.30), but it's brutal for a small business like myself. 2.9% + 1.5% (i…

Yeah, you don't live in the EU.

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#66

Post by johannes1234321 »

zuzululu wrote: post #52

doesnt seem like stripe has anything to worry about here the total contract value is of irrelevant scale i guess i expected it to be more significant seeing that its the UK gov

Well, it is signalling. It's signalling that there are competitors which are trustworthy enough for a government and it signals the overall trend one can observe how European governments detach from US companies. With some lower hanging fruit and some larger projects.

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#67

Post by bijowo1676 »

colechristensen wrote: post #61
fragmede wrote: post #57

Earlier quoted context omitted.

Except in the US, it does. Depending on the card, it can cost as much as 4.5% (or more!) to run the card. You can argue that it shouldn't, but that's a different statement than it doesn't.

uh, I'm including the card issuers as participants in this multi-party scam

it is illegal for Merchants to charge credit card processing fees by law, they have to absorb these fees and cannot display them to the customer.

This naturally protects the artificial oligopoly of visa/mc/discover systems.

The moment you allow Merchants to charge cc fees (even 2-3%) and allow customer to choose low processing option (ACH/debit card/cash), the whole scheme falls apart and Visa/MC will slowly go bankrupt

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#68

Post by colechristensen »

bijowo1676 wrote: post #67
colechristensen wrote: post #61

Earlier quoted context omitted.

uh, I'm including the card issuers as participants in this multi-party scam

it is illegal for Merchants to charge credit card processing fees by law, they have to absorb these fees and cannot display them to the customer. This naturally protects the artificial oligopoly of visa/mc/discover systems. The moment you allow Merchants to charge cc fees (even 2-3%) and allow customer to choose low processing option (ACH/debit card/cash), the whole scheme falls apart and Visa/MC will slowly go bankr…

>it is illegal for Merchants to charge credit card processing fees by law,

This is only true in 4 states.

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#69

Post by johannes1234321 »

m101 wrote: post #29

The solution to all these expenses is to just have the user pay the transaction costs. Then everyone will start using bank transfers.

The issue with bank transfers today is that the SEPA system is robust and established, but got no web compatible API.

But there are two projects (why one, if you can have two!?), one being Wero by different banks, the other being the Digital Euro by the European central bank. If either finds good adaption (Wero is rolling out slowly and for quite a bunch of banks every customer already got a Wero account automatically) this could move things around ...

Re: Gov.uk has replaced Stripe with Dutch provider Adyen

#70

Post by enos_feedler »

colechristensen wrote: post #54
arjie wrote: post #6

Surprisingly small contract. It's interesting to see that a full government contract for a payment provider is a fraction of a US mid-size company's cloud bill. I am constantly surprised by things like this. Here's another: there are more foreigners in Taiwan (total pop. 25 m) than in China (total pop. 1.4 b).

Payment processing costs are a scam. They're 10x as expensive as they need to be to fund rewards programs and fund the financial system. EU max credit card transaction fees are 0.3%, in the US they can be up to 4%. It just doesn't cost 4% of a transaction to handle the exchange of funds. Just wealth transfer to finance people and the upper class who take advantage of credit card perks.

As someone who really enjoys rewards programs, keep those scams alive!
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