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Stripe Price Increase in Europe: +46% for foreign cards
Not unexpected after I was part of a focus group on this last year. You now pay for foreign currency payouts and they won't refund the dispute fee any more, even if you win the dispute.
The forex payout fee is 1%, so processing non-EU cards now costs 4.25% + 0.25eur (2.9% before)
How do you feel about this change? Any alternative providers that offer lower prices?
Thanked by 1Abd
Yep, that's going to sting.
Alternatives with Stripe's flexibility are few and far between.
It's come to the point where you can't really blame companies for only offering products in their native currency and offloading the exchange on the customer.
Essentially they made PayPal move. Soon others will follow. Stripe quality gateways (with OK API's) in Europe with tolerable rates:
Thought, some of these gateways will boot out hosting business or put it under "High risk" flag and substantially higher fees.
Dump Stripe before they dump you.
Nice list. Will have a look around after April.
Pretty insane. I didn't realize how high payment fees were in general now, Stripe, PayPal. Makes me enjoy accepting crypto even more. When I filed my taxes last week I laughed at how my Coinbase fees were like a few dozen buckaroos and Stripe/PayPal were many many thousands. Could mortgage a cheap house just with transaction fees.
I guess they figured out they are a very good alternative to paypal and took this measure. Next please.
Check Payoneer checkout, looks like a new service but it says it is currently for merchants with Hong Kong entity.
I have no experience with them but you can check it
Register different companies to accept customers in different regions:
But most of them don't support USD
Currently, Payoneer Checkout is only available to merchants who:
-Have or intend to set up a business entity in Hong Kong
-Exceed $20,000 in monthly webstore - volumes
-Have an independent online store that is either self-built or built with – Shopify, WooCommerce, Magento, Shoplazza, Shopline, or Ueeshop
What? They support everything that Europe business needs.
Can't find any information on the Swedish site. Is this only for UK?
Wise announced today that they'll also start taking cards in the near feature:
Excellent. Always good to have more competition.
Does no one do this the classic way, directly with a bank? Fees are much lower with no middle man.
ACH is quite nice that's for sure.
It's easy to get European clients to pay by wire transfer, as this has long been the standard there. It's also free (or nearly so) for both the sender and receiver when done within the SEPA zone.
But how to get US-based clients to use ACH, this is the question...
I think he was referring to how CC payments are deposited into the bank account when working direct instead of a middle man.
I think you have to work up some volume to get a merchant account directly with a bank. Cumbersome and lots of work for checkout integrations, might not be worth it if volumes are low and there are ready-made plugins for Stripe, Paypal etc.
This is really not cumbersome, most banks utilize authorize.net, which is the most standardized setup, integrated everywhere. I would argue that the other options have poorer integration.
Where do you see this? Struggling to find it on their site.
I wasn't aware there was much difference here. In your experience, how much do you estimate can be saved in fees by going with a bank for a merchant account rather than with a provider like Stripe?
We have great experiences with Mollie! (looks for ref link ...) :-)
They really have mixed feelings when it comes to hosting industry. But as long as you can show them you are mature and won't cause many chargebacks, you're probably fine.
Ok, when you wrote directly with a bank, I thought you go to a bank and open up a merchant account with them. To me authorize.net is just another middle man.
For example in Sweden, I can get a merchant account for example with Swedbank which is one of the main banks here, but it's going to require high volume.
Authorize.net is a payment gateway, it's just the technology that processes online payments, nothing more.
On our end, we pay the direct % charged by the credit card along with a flat per-transaction fee (which is where the profit margin is for the bank in our case). Companies like PayPal and Stripe make money on both the % and the per-transaction fees.
I think this is what we used, they'll connect you to a bank - https://paymentdepot.com/pricing/
Mail from Stripe today, for EU users:
I'm not sure I see the justification for this:
I can't see any reason why a UK business wouldn't want to charge in USD, and have a payout in USD (e.g. my company has a US bank account because that's the easiest way for me to bill my largest client), so I guess this is just because they want to force people through their own forex pipeline.
Also the dispute fees seem crazy - if any customer can cost you £15 on any transaction, surely that make Stripe completely unsuitable for any transaction less than £15? Or is there a way to just automatically refund every dispute to avoid the fee?
There are some early warning events that sometimes come ahead of disputes. This isn't exactly reliable but perhaps something that might need more attention now.
Also got the email today from Stripe.
The little percentage fees aren't a huge issue, they are still competitive compared to most other options, but this dispute fee change feels very wrong.
If you win the dispute, Stripe still charge you €20, which might well be more than your product cost in the first place.