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5¢ made sense, 0.5% is a parasitic approach, the tech stack and engineering costs them 0.1¢ per recurring transaction.
by hugoromano 6y ago
5¢ made sense, 0.5% is a parasitic approach, the tech stack and engineering costs them 0.1¢ per recurring transaction.
- donor20 6y agoSounds like you could clean up in this space at $00.001 per transaction!
- hugoromano 6y ago¢5/transactions for billing services we could do it, might need some small seed funding to set up a small dev team. Do you think we could get interest customers?
- __float 6y agoYou could get customers, but you'll quickly learn they ask for very complex features, and you'll struggle to pay your dev team with 5 cents per transaction.
- hugoromano 6y agoComplex customers can use 0.5% extra service from Stripe, they could even build their own solution. Billing, recurring, invoicing can be done here. What could be interesting is setting up a billing service that the client brings its own Payment Service (checkout.com, stripe.com, adyen.com).
- adrr 6y agoThere's a fixed cost to put a transaction onto the card brand networks. Recurring includes dunning management which retries failed auths. If you rolled your own, you'd be paying for the declines.
- hugoromano 6y agoStripe is charging extra 0.5% for the billing feature, so a billing charge goes in the US with stripe 3.4% + 30¢. It could be done for 2.9% + 30¢ + 5¢, stripe will still get the its cut, but not the extra 0.5%.