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Yeah but Stripe doesn’t get to keep most of those fees - it’s mostly interchange which goes to Visa which is then distributed to the issuing bank of the credit
by vertoc 7y ago
Yeah but Stripe doesn’t get to keep most of those fees - it’s mostly interchange which goes to Visa which is then distributed to the issuing bank of the credit card
- ian0 7y agoYeah but you don't book other peoples fees as your own revenue. VISA has a profit margin of 54%. Surely they are not counting the entire interchange cost (of which they receive a v. small percentage) as revenue.
- scarejunba 7y agoAFAIK they count the entire processing fee as revenue. It sort of makes sense. If I were to make a service on top of Twilio and charge you 1% more than Twilio, then I have to count the whole amount you're paying me as revenue and the whole amount I'm paying Twilio as a cost. That's just as logical as if I were to build a value-added service on top of AWS, or if I bought things on Alibaba and then sold them in America.