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It would a nice benefit if you could discount the credit card processing fees during the repayment period. E.g. You charge a 10% upfront fee for the loan, and
by zaroth 7y ago
It would a nice benefit if you could discount the credit card processing fees during the repayment period.
E.g. You charge a 10% upfront fee for the loan, and repay at a 10% rate, from the perspective of the company they’re actually paying 12.9% to Stripe during repayment.
If you could pay just the 10% or even if you just got a .5% reduction to 12.4% overall going to Stripe during the repayment period, it becomes more of a win-win and a nice customer loyalty type bonus.
- pc 7y agoInteresting idea!
- chirau 7y agoPatrick, is that you? I just wanted to say that I admire all that you guys are doing at Stripe. My favorite company currently. Please keep up the standard, even when you do eventually go public. I feel much better now that I have got that off my chest. Downvotes in 3..2..1
- meowface 7y agoPlease don't mention downvotes in your post. It's like compliment/upvote-baiting. (I find myself guilty of fanboying over certain musicians and founders sometimes, too, but keep in mind people on the receiving end of it sometimes feel automatically uncomfortable, even if you're saying things they like to hear.)
- davidandgoliath 7y agoThat's far more compelling. If a % of the ~$15k+ we give stripe annually (via cc processing fees) went towards loan repayment, we'd likely have perpetual loans open :)
- GordonS 7y agoAh, now this is a great idea! Stripe reduce their margin slightly on payments - but it makes for a much more compelling sell to potential borrowers.
- buildawesome 7y agoProblem is that usually 0.5% or 50 basis points is the markup on the fee, so effectively, the processor wouldn't make money on transactions, but would only make money on complete repayment. This is a loss to the business if it takes longer for the merchant to pay back the working capital loan.