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Oh, so I'm going to pay more for customers who have "premium cards"? > Standard EU cards: 1.5% + €0.25 per transaction > Premium EU card: 1.9% + €0.25 per tran

by aspyct 4y ago

Oh, so I'm going to pay more for customers who have "premium cards"? > Standard EU cards: 1.5% + €0.25 per transaction > Premium EU card: 1.9% + €0.25 per transaction That sounds completely backwards. They chose to have premium cards, not me.

rubynerd 4y ago
Looking at the definition of "premium cards"[0] they're actually business/commercial/corporate cards, not premium consumer cards. A horrendous term that's bound to cause confusion. The scariest part of this pricing split is that Stripe seems to be determining the fee "based on the information available from card networks at point of capture", instead of being directly told what the card type is, and even allude to this determination being potentially incorrect. This gets even more frustrating when you think that business spend is on average higher than personal/consumer spend, so charging a higher fee for this is just a triple whammy. It's easy to crucify Stripe for this, but this is probably a product of a cost review they're undertaking as part of IPO/next round prep (if The Information is anything to go by). We need a new Visa/Mastercard. [0] https://support.stripe.com/questions/what-s-the-difference-between-standard-and-premium-cards https://support.stripe.com/questions/what-s-the-difference-b...
MilaM 4y ago
This is not about actual premium cards. Premium cards are defined by Stripe as: > Commercial, corporate, or business cards issued by Visa and Mastercard The reason is that in 2015 the EU capped interbank fees to 0.2% for debit cards and 0.3% for credit cards. Visa and Mastercard (and issuing banks) managed to carve out an exemption for payment cards that are issued to businesses. These cards do have much higher fees. I'm actually surprised that Stripe has refrained so far from charging more for business cards.
- aspyct 4y ago
  It's still wrong that I would pay extra for those cards. I understand that different networks have different fees. But I expect one type of card to cost me the same. When you go to a store, you pay the same price, regardless of which card you have. What would be your reaction if you were charged more because you're using a specific type of card? I can't ask my customers to foot the bill, so it's effectively 0.4% I lose.
- WesolyKubeczek 4y ago
  It would be bloody nice if the PaymentMethod object included a flag telling if Stripe thinks a card is premium or not.

by aspyct 4y ago

rubynerd 4y ago

Looking at the definition of "premium cards"[0] they're actually business/commercial/corporate cards, not premium consumer cards. A horrendous term that's bound to cause confusion. The scariest part of this pricing split is that Stripe seems to be determining the fee "based on the information available from card networks at point of capture", instead of being directly told what the card type is, and even allude to this determination being potentially incorrect. This gets even more frustrating when you think that business spend is on average higher than personal/consumer spend, so charging a higher fee for this is just a triple whammy. It's easy to crucify Stripe for this, but this is probably a product of a cost review they're undertaking as part of IPO/next round prep (if The Information is anything to go by). We need a new Visa/Mastercard. [0] https://support.stripe.com/questions/what-s-the-difference-between-standard-and-premium-cards https://support.stripe.com/questions/what-s-the-difference-b...

MilaM 4y ago

This is not about actual premium cards. Premium cards are defined by Stripe as: > Commercial, corporate, or business cards issued by Visa and Mastercard The reason is that in 2015 the EU capped interbank fees to 0.2% for debit cards and 0.3% for credit cards. Visa and Mastercard (and issuing banks) managed to carve out an exemption for payment cards that are issued to businesses. These cards do have much higher fees. I'm actually surprised that Stripe has refrained so far from charging more for business cards.

aspyct 4y ago
It's still wrong that I would pay extra for those cards. I understand that different networks have different fees. But I expect one type of card to cost me the same. When you go to a store, you pay the same price, regardless of which card you have. What would be your reaction if you were charged more because you're using a specific type of card? I can't ask my customers to foot the bill, so it's effectively 0.4% I lose.
WesolyKubeczek 4y ago
It would be bloody nice if the PaymentMethod object included a flag telling if Stripe thinks a card is premium or not.