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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

#91

Post by lxgr »

era-epoch wrote: post #65
switz wrote: post #60

Earlier quoted context omitted.

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.

Interestingly, the EU did manage to cap interchange on US cards paid by EU merchants to pretty much the same rate as that paid for domestic/intra-EU cards, at least at the POS. Many things are possible with a regulator with teeth.

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

#92

Post by lxgr »

PearlRiver wrote: post #86
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.

The only good use case for a credit card is if you are buying something from someone you do not trust. I have a CC and it use it a few times a year. But using them to pay for groceries or ordering something from Amazon is just moronic. The way I see it: you are either rich and don't care or you are poor and need to spend money that is not in your account (no judging I grew up poor and had to hide from debt collectors…

Third option: You have the money and like paying less than people paying with non-rewards cards.

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

#93

Post by [deleted] »

enos_feedler wrote: post #70
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.

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

[deleted]

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

#94

Post by lxgr »

DaSHacka wrote: post #82
matt-p wrote: post #77

Earlier quoted context omitted.

You are also being subsidised by debit card users.

How many people are actually buying things on a Debit card? I imagine not a lot

Roughly half of all card users in the US, and probably much more elsewhere.

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

#95

Post by napoleongl »

DaSHacka wrote: post #82
matt-p wrote: post #77

Earlier quoted context omitted.

You are also being subsidised by debit card users.

How many people are actually buying things on a Debit card? I imagine not a lot

I’d say it’s the norm in much of Europe for starters…

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

#96

Post by x1ph0z »

jorvi wrote: post #22
toomuchtodo wrote: post #9

Earlier quoted context omitted.

Brazil's central bank operates their instant payment network Pix [1] [2] [3] for ~$10M/year [4]. Its not that these are small contracts, but that large, inefficient, unnecessary contracts have become the norm (I argue). Similar example from India's UPI payment system [5]. The US has FedNow to move instant payments for pennies, but banking and payment system participants in the US ecosystem are avoiding it to continue…

Feels odd that you exclude mentioning the EU, which has had instant transfers for more than a decade. More than two decades, if you include things like iDeal from The Netherlands.

Canadians have been able to transfer money via email for ages, only Americans think their system is unique, it is. Uniquely inefficient and costly.

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

#97

Post by lxgr »

bijowo1676 wrote: post #71
colechristensen wrote: post #68

Earlier quoted context omitted.

>it is illegal for Merchants to charge credit card processing fees by law, This is only true in 4 states.

the typical Merchant bank agreements all have clauses forcing them to absorb these fees and explicitly barring them from separately charging customer CC fee. and most small/med businesses dont have clout to protest that, so they have to accept these terms in order to earn money

> the typical Merchantbank agreements all have clauses forcing them to absorb these fees and explicitly barring them from separately charging customer CC fee.

These clauses would be illegal in many states and countries these days, so they don’t.

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

#98

Post by wbl »

toomuchtodo wrote: post #85
cherryteastain wrote: post #80

Earlier quoted context omitted.

Solana mainnet was shown to have capability to handle 100k transactions per second [1]. Granted, it was a synthetic benchmark of noops, but it shows the capability is there. For reference, Visa claim 83k TPS [2] for their system. It also has the advantage of being vastly cheaper than tradfi payment networks at ca. $0.0005 per transaction [3] irrespective of transaction amount. [1] https://www.coindesk.com/markets/202…

Until it is in prod, it is a proof of concept. Blockchains solve for low trust; if you have trust, you don't need the efficiency loss of a decentralized ledger or blockchain. Central banks provide trust. As mentioned in one of my other comments, Pix in Brazil costs ~$10M/year. They process ~6-8 billion monthly transactions and roughly $6.7 trillion in payment volume a year [1]. That's roughly ~$0.0015/transaction bas…

And then we watch fraud soar. The 3% pays for a lot of bad transactions reversals and dispute management.

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

#99

Post by toomuchtodo »

wbl wrote: post #98
toomuchtodo wrote: post #85

Earlier quoted context omitted.

Until it is in prod, it is a proof of concept. Blockchains solve for low trust; if you have trust, you don't need the efficiency loss of a decentralized ledger or blockchain. Central banks provide trust. As mentioned in one of my other comments, Pix in Brazil costs ~$10M/year. They process ~6-8 billion monthly transactions and roughly $6.7 trillion in payment volume a year [1]. That's roughly ~$0.0015/transaction bas…

And then we watch fraud soar. The 3% pays for a lot of bad transactions reversals and dispute management.

Fraud can be managed at instant payment rails, you don't need credit card rails to manage it; fraud must be managed on any rails utilized, so it is somewhat agnostic. If you as a consumer want credit card chargeback protection insurance, push the fee onto the consumer with a surcharge to cover the cost. I believe the evidence is robust credit card rails are unnecessary in today's world, plain and simple. They are a bloated legacy holding on for relevance (and their grossly excessive margins) imho.

On fraud management:

Pix: https://www.europeanpaymentscouncil.eu/news-insights/insight...

UPI: https://ieeexplore.ieee.org/document/11063926

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

#100

Post by rswail »

lxgr wrote: post #92
PearlRiver wrote: post #86

Earlier quoted context omitted.

The only good use case for a credit card is if you are buying something from someone you do not trust. I have a CC and it use it a few times a year. But using them to pay for groceries or ordering something from Amazon is just moronic. The way I see it: you are either rich and don't care or you are poor and need to spend money that is not in your account (no judging I grew up poor and had to hide from debt collectors…

Third option: You have the money and like paying less than people paying with non-rewards cards.

Fourth option: You use tap-to-pay and pay the balance in full every month for the convenience at zero cost.
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