3 ms·

Why do we pay that much again? Assuming risk.

dangrossman 11y ago
I'm paying 0.15% + $0.26 for those transactions through another MSP. I think many people are paying the 2.9% for the convenience Stripe and PayPal offer over applying for and integrating a merchant account and gateway, not because they're a huge risk and nobody else would take their business at lower rates.
- jkestner 11y ago
  But that doesn't include the credit card association's 2.10% or whatever, does it? Stripe does. Yes, collapsing the confusing levels of this process is certainly worth something.
  - dangrossman 11y ago
    No, it does include that fee. That 0.05% + $0.21 I referenced is the interchange fee charged by Visa. That fee was capped at that low level by the Durbin Amendment of the Dodd-Frank financial reform legislation in 2010. Stripe's pricing has been 95%+ markup when it comes to debit/check cards since then. Other card types don't have such an enormous fee spread, but unless all your customers are paying with corporate cards and AmEx, 2.9% flat rate is a real nice margin.
    - jkestner 11y ago
      At the risk of being dense, are you sure you're not talking about debit cards? I've never seen interchange fees lower than about 1% for credit cards. In what I read from the Durbin Amendment, I've only found the specific numbers you mentioned in reference to debit cards. If I'm wrong, I want the name of your merchant processor!
      - dangrossman 11y ago
        I am most definitely talking about debit cards. I said "fee for charging a debit/check card". They make up 25% of my online processing volume despite being a mostly B2B business. They're probably more than 25% of Stripe's volume. Visa interchange fees: http://usa.visa.com/download/merchants/Visa-USA-Interchange-Reimbursement-Fees-2015-April-18.pdf http://usa.visa.com/download/merchants/Visa-USA-Interchange-... A screenshot of a transaction report at my processor: http://i.imgur.com/fSycwUS.png http://i.imgur.com/fSycwUS.png Feel free to e-mail me if you'd like any other clarification or information. It's in my profile.
        jkestner 11y ago
        Whoops, you did say that, way back in the first post in our thread. Sorry, I've been focused on credit cards — all is clear now. I hadn't thought at all about that wrinkle of Stripe. I suppose it's (only partially) balanced by the higher AMEX, etc fees.
- pbreit 11y ago
  Why doesn't someone do Stripe (or Square) with interchange-plus pricing? To little profit? I always hear, but never believed, that businesses supposedly appreciate stable fees. After having several businesses I know I much prefer lower fees.

I'm paying 0.15% + $0.26 for those transactions through another MSP. I think many people are paying the 2.9% for the convenience Stripe and PayPal offer over applying for and integrating a merchant account and gateway, not because they're a huge risk and nobody else would take their business at lower rates.

jkestner 11y ago
But that doesn't include the credit card association's 2.10% or whatever, does it? Stripe does. Yes, collapsing the confusing levels of this process is certainly worth something.
- dangrossman 11y ago
  No, it does include that fee. That 0.05% + $0.21 I referenced is the interchange fee charged by Visa. That fee was capped at that low level by the Durbin Amendment of the Dodd-Frank financial reform legislation in 2010. Stripe's pricing has been 95%+ markup when it comes to debit/check cards since then. Other card types don't have such an enormous fee spread, but unless all your customers are paying with corporate cards and AmEx, 2.9% flat rate is a real nice margin.
  - jkestner 11y ago
    At the risk of being dense, are you sure you're not talking about debit cards? I've never seen interchange fees lower than about 1% for credit cards. In what I read from the Durbin Amendment, I've only found the specific numbers you mentioned in reference to debit cards. If I'm wrong, I want the name of your merchant processor!
    - dangrossman 11y ago
      I am most definitely talking about debit cards. I said "fee for charging a debit/check card". They make up 25% of my online processing volume despite being a mostly B2B business. They're probably more than 25% of Stripe's volume. Visa interchange fees: http://usa.visa.com/download/merchants/Visa-USA-Interchange-Reimbursement-Fees-2015-April-18.pdf http://usa.visa.com/download/merchants/Visa-USA-Interchange-... A screenshot of a transaction report at my processor: http://i.imgur.com/fSycwUS.png http://i.imgur.com/fSycwUS.png Feel free to e-mail me if you'd like any other clarification or information. It's in my profile.
      - jkestner 11y ago
        Whoops, you did say that, way back in the first post in our thread. Sorry, I've been focused on credit cards — all is clear now. I hadn't thought at all about that wrinkle of Stripe. I suppose it's (only partially) balanced by the higher AMEX, etc fees.
pbreit 11y ago
Why doesn't someone do Stripe (or Square) with interchange-plus pricing? To little profit? I always hear, but never believed, that businesses supposedly appreciate stable fees. After having several businesses I know I much prefer lower fees.