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From what I understood: The interchange fees aren't going up because of higher rates of returns. They're going up to pay for credit card rewards. Stripe is ke
by Matheus28 7y ago
From what I understood:
The interchange fees aren't going up because of higher rates of returns. They're going up to pay for credit card rewards.
Stripe is keeping these fees when a purchase is returned simply to increase their overall profit.
Why punish businesses that have higher rates of returns if that is not the cause of the higher fees?
- scarface74 7y agoJust as an example, any business that deals with sex - porn sites, strip clubs, etc. have higher returns. Why should your mom and pop diner with low fees pay more? When you are in certain types of business, you can take that as a cost of doing business. But no matter what the reason is, if Stripe doesn’t get the money back why should they eat the cost? We should want companies that we use to pass the cost of doing business + profit to make enough to be sustainable.
- Matheus28 7y agoI don't think you understood my point in the first post. The point is that we don't know if Stripe still has to pay interchange fees in case of refunds. It is assumed they don't, and they're just pocketing it.
- scarface74 7y agoAhhh understood. I’m seeing various things, but the consensus seems to be that the payment processor does get refunded the interchange fee. https://www.quora.com/How-are-credit-card-processing-fees-handled-upon-a-product-return https://www.quora.com/How-are-credit-card-processing-fees-ha... So it would be fair if Stripe charged a small transaction fee for a refund but returned the bulk of the interchange fees.