4 ms·

Glad to see Stripe release this, but the $5.00 fee cap doesn't seem competitive for frequent large transactions compared to other providers that have a flat fee

by fblp 11y ago

Glad to see Stripe release this, but the $5.00 fee cap doesn't seem competitive for frequent large transactions compared to other providers that have a flat fees from $0.25 like Dwolla, with more listed here http://www.merchantmaverick.com/need-know-accepting-ach-payments/ http://www.merchantmaverick.com/need-know-accepting-ach-paym.... Why the higher cost?

pc 11y ago
Dwolla also charges monthly fees: https://www.dwolla.com/pricing https://www.dwolla.com/pricing. You need to pay $1,500 a month in order to charge more than 10 bank accounts. In general, most providers have a lot of fine-print. We tried to come up the simplest and fairest pricing we could.
- veritas20 11y ago
  Not sure about this. Pricing reads "funding sources" with no reference to the number of bank accounts that you can charge. http://blog.dwolla.com/connect-multiple-funding-sources-dwolla-account/ http://blog.dwolla.com/connect-multiple-funding-sources-dwol...
- jacobsimon 11y ago
  Still, it seems unusual to charge a percentage fee. From what I understand, one of the main benefits of ACH over credit cards is the flat fee structure.
  - 0xffff2 11y ago
    Compared to credit cards, $5 is pretty flat isn't it?
  - jslampe 11y ago
    TL;DR ACH is a commodity. The business model is derived by the platforms services offered, flexibility provided, and business targeted. ACH is a heavily commoditized product. For ACH processors, then, your business model is tied to the functionality and capabilities offered by the platform. Dwolla, which has spent the last 4 years exclusively building out its ACH API, has a range of free and paid-for products and services. This allows us to offer a fixed flat-fee price point based on the additional value we bring to platforms (instant account verification, next-day processing, higher limits, holding balances, etc.). Both services do an excellent job at baking in the expensive compliance, support, regulatory, etc. into their products.
itsthisjustin 11y ago
Which is exactly why I just released http://paynote.io http://paynote.io
bpmilne 11y ago
There is no transaction fee for Dwolla whether or not you use the free product or the white label product. There is no limit to the number of bank accounts you can debit or credit via ACH with the white label api - https://www.dwolla.com/white-label https://www.dwolla.com/white-label
JoshTriplett 11y ago
For the size of transaction that would typically motivate ACH, $5 seems like nothing. Dwolla has much higher friction. And this seems lower than the equivalent credit card charge.
deleted 11y ago
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by fblp 11y ago

pc 11y ago

Dwolla also charges monthly fees: https://www.dwolla.com/pricing https://www.dwolla.com/pricing. You need to pay $1,500 a month in order to charge more than 10 bank accounts. In general, most providers have a lot of fine-print. We tried to come up the simplest and fairest pricing we could.

veritas20 11y ago
Not sure about this. Pricing reads "funding sources" with no reference to the number of bank accounts that you can charge. http://blog.dwolla.com/connect-multiple-funding-sources-dwolla-account/ http://blog.dwolla.com/connect-multiple-funding-sources-dwol...
jacobsimon 11y ago
Still, it seems unusual to charge a percentage fee. From what I understand, one of the main benefits of ACH over credit cards is the flat fee structure.
- 0xffff2 11y ago
  Compared to credit cards, $5 is pretty flat isn't it?
- jslampe 11y ago
  TL;DR ACH is a commodity. The business model is derived by the platforms services offered, flexibility provided, and business targeted. ACH is a heavily commoditized product. For ACH processors, then, your business model is tied to the functionality and capabilities offered by the platform. Dwolla, which has spent the last 4 years exclusively building out its ACH API, has a range of free and paid-for products and services. This allows us to offer a fixed flat-fee price point based on the additional value we bring to platforms (instant account verification, next-day processing, higher limits, holding balances, etc.). Both services do an excellent job at baking in the expensive compliance, support, regulatory, etc. into their products.

itsthisjustin 11y ago

Which is exactly why I just released http://paynote.io http://paynote.io

bpmilne 11y ago

There is no transaction fee for Dwolla whether or not you use the free product or the white label product. There is no limit to the number of bank accounts you can debit or credit via ACH with the white label api - https://www.dwolla.com/white-label https://www.dwolla.com/white-label

JoshTriplett 11y ago

For the size of transaction that would typically motivate ACH, $5 seems like nothing. Dwolla has much higher friction. And this seems lower than the equivalent credit card charge.

deleted 11y ago

[deleted]