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The tipping point is the 2% for currency conversion, but keep in mind that this is happening either way on Paddle as well, just not going to Paddle. Paddle take
by sudhirj 5y ago
The tipping point is the 2% for currency conversion, but keep in mind that this is happening either way on Paddle as well, just not going to Paddle. Paddle takes 5%, then the entity that converts from USD to your currency (Payoneer / wire transfer bank) takes the 2% or more. Stripe calls it out clearly and gives you your money in your own currency.
- Silhouette 5y agoIf you're selling a B2C service (so the really horrible tax rules apply) for say £10/month, that extra £0.20 is another 2%. Stripe's total cut for an international sale with currency conversion is then nearly 8%, even if you don't use any of their other services with their own extra costs and you never have any refund or chargeback costs to amortize. Stripe is crazy expensive these days. (There are other parts in the fees charged by other services as well, but those also aren't like for like comparisons. I'm just saying that 5% as a baseline wouldn't necessarily be that high compared to services like Stripe.)
- lemming 5y agoPaddle uses Currency Cloud for that, which charges a true mid-market rate and a very low transaction fee. It's what Transferwise uses behind the scenes.
- sudhirj 5y agoThey use whatever to convert all the currencies of the world into your base currency, usually USD/EUR. Then they transfer that to you, and you pay more conversion fees if that’s not your actual base.
- lemming 5y agoI sell in USD, and then once a month they transfer my sales to me using Currency Cloud. At that point it gets converted at the mid-market rate + 0.25% IIRC. Since they don't actually make international transfers using banks, that amount is what actually arrives in my bank.