4 ms·
~$3.2B USD in processed transactions through stripe (so far). ~42M transactions. ~$92.8M for 2.9% fee. ~$12.6M for 30 cent fee. ~$105.4M just for processing
by xyst 3y ago
~$3.2B USD in processed transactions through stripe (so far). ~42M transactions.
~$92.8M for 2.9% fee.
~$12.6M for 30 cent fee.
~$105.4M just for processing transactions on a single day.
Above assumes the “standard” pricing [1]. It’s not quite clear how much stripe takes from the 2.9% and 0.30 cut. Likely have to share this with card network and issuing bank.
The invisible hand of traditional banking system taking money out of our pockets every time.
[1] https://stripe.com/pricing https://stripe.com/pricing
- nathanaldensr 3y ago"We reserve the right to charge you for using the system we created and enforce through monopoly government force!"
- judge2020 3y agoA lot of the fee goes to the customer's bank that funded the transaction, which is what enables Credit Card rewards programs. If you limit that fee (like the E.U. has), Visa et al. don't go out of business, but then you won't see any similar level rewards programs like we have here in the US (e.g. 2% back on everything, or 3-5% on specific categories, etc).
- tjoff 3y agoSuch fees just encourages bad incentives. Such as terrible security because reimbursing people / financing organized crime is cheaper (cheaper for the bank, of course much more expensive for society).
- gazby 3y agoIs it just me who'd prefer they just didn't take my money in the first place...?
- cj 3y agoAt this point, every local restaurant in my area is charging 2.9% fee for using a credit card. Let's just lower these processing fees, get rid of credit card rewards, and small businesses can stop charging fees for using credit cards for payment.
- pc86 3y agoThere's plenty of things about modern finance you're free to complain about. Things we're largely forced to do with onerous and useless fees attached - Realtors taking 6% of multi-million dollar transactions for doing nearly nothing has been in the news recently. Pretty sure nobody is forced to buy info products on Black Friday for an 80% discount.
- gruez 3y ago>and enforce through monopoly government force! ???
- FredPret 3y agoUhhh… how exactly were these transactions supposed to even take place without the banking system? I have no interest in bartering or sending ounces of gold around. And don’t say crypto - last time I tried to figure it out, I ended up sending ETH, and more than half of it evaporated in “gas money”. What a joke.
- mdrzn 3y agoYou chose the most expensive "routing", otherwise you would only have spent cents to send any amount.
- athammer 3y agoKnowing that is part of “figuring it out”. A lot of people wouldn’t expect something that harsh to be possible and/or don’t keep up with news about gas fees. A mistake that will never be repeated but a mistake most of us have done the first time.
- FredPret 3y agoThe first and last time I'll ever pay "gas fees". I can wire arbitrary amounts around the world for a fraction of that gas fee with the full backing of the global banking system.
- xyst 3y agoWell there’s the FedNow Service which will introduce instant payments. Should eliminate the need for parasitic credit card processing networks. A good “FedNow” or instant payment provider can easily disrupt the debit and credit card processing companies. At most, businesses charged 5-10 cents per transaction. No more dealing with credit card network fees. Chargeback fees. Exchange fees. Issuing bank fees. Premium card fees. Just a simple 5-10 cent per transaction. Only need a US bank account.
- Tijdreiziger 3y agoGreat, so it only works in a single country. Stripe supports much more countries and payment rails than just US credit cards.
- raincole 3y agoNext time you buy food, remember that's traditional farming system taking money out of your pocket. Seriously, if the whole crypto scene taught us anything, it was that a global transaction network isn't an easy service to provide.
- jona-f 3y agoWell i learned a different lesson. It's now extremely easy to set up a global transaction network, or you can choose from one of the thousands of existing ones. Maybe you mean the regulatory aspect, not the technical?
- troupo 3y ago> It's now extremely easy to set up a global transaction network, Yup. Wake me up when any of them actually does the amount of transactions Stripe and Shopify [1] do. Real transactions. > Maybe you mean the regulatory aspect, not the technical? "Both. Both is good".gif [1] Their dashboard discussion is here: https://news.ycombinator.com/item?id=38403891 https://news.ycombinator.com/item?id=38403891, the dashboard itself is https://bfcm.shopify.com https://bfcm.shopify.com
- raincole 3y ago> Maybe you mean the regulatory aspect, not the technical? Both... but also neither. I meant mostly the marketing aspect. Or for a better word, prestige aspect. People really hate crypto as online cash. Examples: 1. Patreon has held a poll about what new features to add [0]. Crypto was the only feature the creators actively voted against. Note that for creators, crypto means one more way to receive money. 2. My anecdote: I was in a discord group where one member commissioned a short animation from another. They're from different countries and the commissioner couldn't use paypal (for some reason) however. I suggested USDT and explained how to convert it from/to fiat. They ended up using international wire transfer (fee: ~$30). 3. Any HN thread when you mention crypto. [0]: https://news.patreon.com/articles/the-first-ever-patreon-creator-census https://news.patreon.com/articles/the-first-ever-patreon-cre...
- potamic 3y agoRidiculous considering India's NPCI processes $6B USD in 400M transactions a day at a modest operating revenue of < $0.5M USD a day! This is a clear situation where the market is inefficient.
- umeshunni 3y agoNPCI is state funded and runs at a loss. i.e. your taxes are paying for it.
- potamic 3y agoThey're definitely not running at a loss, 40% profit margin in fact. It's also not the full picture to call them state funded. They're owned by a consortium of banks, both private and public. While the state maintains a level of ownership through their equity in public banks, the company itself is self- sustainable from an operations point of view.
- umeshunni 3y agoSorry, I meant that UPI is running at a loss and is subsidized. https://bfsi.economictimes.indiatimes.com/news/fintech/upi-transactions-are-rising-but-who-will-foot-the-bill/94032077 https://bfsi.economictimes.indiatimes.com/news/fintech/upi-t... The government gives Rs 1,300 crore as subsidy Unsurprisingly, there is now a 1.1% interchange on some UPI transactions now: https://www.onmanorama.com/news/business/2023/03/31/upi-transactions-wallets-charge-npci.html https://www.onmanorama.com/news/business/2023/03/31/upi-tran... Separately, NCPI's revenues are USD ~2B/year: https://www.icra.in/Rationale/ShowRationaleReport/?Id=122149#:~:text=Healthy%20financial%20risk%20profile%20%E2%80%93%20NPCI,a%20net%20worth%20of%20Rs https://www.icra.in/Rationale/ShowRationaleReport/?Id=122149....