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Stripe and Square will just raise their fees. Visa/MC are the network, you still need a processor. For low volume transactions, its normal for a processor to
by adrr 8y ago
Stripe and Square will just raise their fees. Visa/MC are the network, you still need a processor. For low volume transactions, its normal for a processor to offer a merchant blended rate. For higher volume, you pay interchange + processing fee. Stripe offers interchange plus pricing if you have enough volume.
Visa even owns a low volume processor called authorized.net that charges same fees as stripe. They also own cybersource which specializes in high volume processing which operates on an interchange plus model.
- abalone 8y ago> Stripe offers interchange plus pricing if you have enough volume. Are there published details on this? What is their markup?
- adrr 8y agoMost interchange plus pricing is negotiated and covered by NDAs. Generally, Interchange plus fees(not stripes) range fixed of 0.05 with 10bips settlement fee all the way down to fractions of a penny if you're doing millions of transactions per month. Authorized.net used to do 0.10 and 25bips settlement but I think they only do blended rates now.
- csdreamer7 8y agoWow... Visa purchased Authorized.net in 2010. They were one of the big ones for startups besides PayPal.
- adrr 8y agoAuthorized.net was in decline in 2010. They never released a method to pass the card numbers on the front side which made customers servers in-scope for full PCI compliance.