3 ms·
> PayPal has established the absolute rock-bottom industry-floor of 2.9% + $0.30 for payment processing + fraud reduction. This is neither unique to PayPal or
by SkyPuncher 8y ago
> PayPal has established the absolute rock-bottom industry-floor of 2.9% + $0.30 for payment processing + fraud reduction.
This is neither unique to PayPal or the actual floor.
2.9% + (roughly) $0.30 is pretty much the standard across all public facing credit card processors like PayPal (and their subsidiary Braintree), Stripe, Amazon Pay, Authorize.net, and more. I have heard rumors Stripe offers rates as low as 1.8% for large volume processors. Adyen charges $0.12 + 0.6% + interchange fee making them extremely lucrative for their customers (including Uber, Netflix, Etsy, Spotify).
Given Microsoft's size and expertise, I'd anticipate they are operating close to interchange rates around $0.10 + between 0.8% and 1.6%.
- martinald 8y agoIn Europe Stripe offers 1.4% + 25eurocent for EU cards, with the same 2.9% for non EU cards. Stripe actually charges US customers an extra 1% to process EU cards (3.9% total), plus a hefty forex fee. For a company like MS with a major EU presence the average rate will be skewed lower than what the market looks like.
- StudentStuff 8y agoThe actual cost for credit/debit card processing is interchange itself, which averages to ~1% for grocers & about 2% for everyone else if your doing north of $200k a year in volume. High risk industries like cruises, concerts & similar will pay close to 5% (or more), as when the event doesn't pan out, all that cash will need to be refunded.