6 ms·

Can you explain why this is?

toptal 9y ago
They 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 ago
Adyen 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 ago
  Stripe 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.
  - Rapzid 9y ago
    What are the added complexities involved with your interchange plus model? I'm curious as to why companies would prefer to pay more; what am I missing?
    - ascorbic 9y ago
      Why would they be paying more? As GP states, the fees can be quite a bit lower, but they vary by card type.
- bowersbros 9y ago
  Note that EU customers of Stripe get a drastically nicer 1.4% + 20p charge.
  - NicoJuicy 9y ago
    It's not about a better deal from Stripe, it's Europeans have to pay less in general.
    - rawfan 9y ago
      Yeah sure. Remind me when I buy my next iPhone for a ~45% markup compared to the US prices. The 64GB 4.7" iPhone 8 is $699.00 in the US and $998 (799 EUR) in Germany.
      - NicoJuicy 9y ago
        I'm talking about payment processing fees
  - lorenzhs 9y ago
    Note that there is a limit of 0.3% on the interchange fee in the EU for credit cards, and 0.2% for debit cards: http://www.consilium.europa.eu/en/press/press-releases/2015/04/20/capping-fees-card-based-payments/ http://www.consilium.europa.eu/en/press/press-releases/2015/...
- gruez 9y ago
  I wonder if it's possible to optimize your payment processing fees by dynamically choosing between flat rate (for premium cards) and interchange plus (for regular cards) payment processors.
  - deleted 9y ago
    [deleted]
- deleted 9y ago
  [deleted]

They 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 ago

Adyen 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 ago
Stripe 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.
- Rapzid 9y ago
  What are the added complexities involved with your interchange plus model? I'm curious as to why companies would prefer to pay more; what am I missing?
  - ascorbic 9y ago
    Why would they be paying more? As GP states, the fees can be quite a bit lower, but they vary by card type.
bowersbros 9y ago
Note that EU customers of Stripe get a drastically nicer 1.4% + 20p charge.
- NicoJuicy 9y ago
  It's not about a better deal from Stripe, it's Europeans have to pay less in general.
  - rawfan 9y ago
    Yeah sure. Remind me when I buy my next iPhone for a ~45% markup compared to the US prices. The 64GB 4.7" iPhone 8 is $699.00 in the US and $998 (799 EUR) in Germany.
    - NicoJuicy 9y ago
      I'm talking about payment processing fees
- lorenzhs 9y ago
  Note that there is a limit of 0.3% on the interchange fee in the EU for credit cards, and 0.2% for debit cards: http://www.consilium.europa.eu/en/press/press-releases/2015/04/20/capping-fees-card-based-payments/ http://www.consilium.europa.eu/en/press/press-releases/2015/...
gruez 9y ago
I wonder if it's possible to optimize your payment processing fees by dynamically choosing between flat rate (for premium cards) and interchange plus (for regular cards) payment processors.
- deleted 9y ago
  [deleted]
deleted 9y ago
[deleted]