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Adyen will be better if you have more consumer cards vs. business cards being charged. Nearly 100% chance of this, otherwise Stripe may win.
by toptal 9y ago
Adyen will be better if you have more consumer cards vs. business cards being charged. Nearly 100% chance of this, otherwise Stripe may win.
- toomuchtodo 9y agoIs there middleware that can route transactions based on criteria to various payment processors?
- toptal 9y agoThere definitely is not. Good idea though, however the margins would be razor thin. Possibly too thin.
- foota 9y agoSeems like it would be best in this case to offer a fixed rate?
- dangrossman 9y agoGoogle "payment routing". There definitely is middleware you can buy to route payments to different processors. I've built my own for my business on top of Spreedly. I'm not sure what you think the issue would be with margins; the routing service doesn't have any direct costs other than servers.
- jaredtking 9y agoMy company, Invoiced, supports routing payments across different processors/merchant accounts. There are many interesting use cases for it within the billing space beyond just cutting transaction costs. One common use case we see is trust accounting for lawyers. The gist of it is that trust and operating funds are stored in separate bank accounts, depending on the context of the bill. It’s a legal requirement that can result in disbarment if not followed properly. Another scenario we run into is with insurance billing where policy payments need to go to different bank accounts or even be handled by a different processor, depending on the policy. I know of other software systems that can do payment routing as well.
- ddsaso 9y agoI work at Spreedly and this is essentially what we do. Store credit cards with us (we're PCI Level 1 Compliant) then decide which payment processor you want to send cards to for transactions. We don't provide automatic routing so you'd need to decide which processor to use on your end but you could easily charge the same card against two different payment gateways if you wanted to.
- ldrndll 9y agoCan you explain why this is?
- toptal 9y agoThey built an incredible amount of infrastructure to support it, better than anyone due to the fact they were all ex payment execs. Business cards are nuanced and they didn't focus on it, though they're about 1:1 with Stripe.
- dangrossman 9y agoAdyen is an "interchange-plus" payment processor, which means they pass on the interchange fee charged to them by the payment processing networks, plus a fixed markup. Stripe is a flat-rate payment processor: 2.9% + $0.30 on everything. Interchange fees range from 0.05% to 3.2%, more or less. Most consumer cards are going to be significantly cheaper than 2.9% to process. Many people use "check cards" from their bank which are in that 0.05% category, for example. American Express and the top tier Visa and MasterCard rewards/business cards are the ones where interchange can exceed 2.9%. There are many "interchange-plus" merchant account providers now. I get better rates than Adyen is advertising on their website right now.
- edwinwee 9y agoStripe supports interchange plus when a business would prefer that solution. For the majority of businesses that we work with, they prefer the simplicity of the rates published on our site.