undefined | Better HN

0 pointskzrdude3y ago0 comments

EU has limited the fees credit card companies can apply on transactions in Europe, doesn't that mean Stripe should have lower overhead costs there?

0 comments

throwaway677433y ago

That only applies to the card networks not merchants or processors, but there is also a dual rate system that the EU are obsessed with where intra EU is much cheaper, they mandated the same for voice calls too, it's very dumb and just insulates the EU further (which is their plan it seems)

hocuspocus3y ago

It doesn't apply to the card scheme, it applies to interchange, i.e. the part that goes back to the card issuer.

I don't see how that is dumb, the EU cannot do anything about issuers outside of it, and PSPs have to reflect the huge difference in interchange fees one way or another.

throwaway677433y ago

Correct, merchants do not charge interchange, banks/networks do, and its dumb because it increases the costs of doing business in the EU (which as I said, makes it more insular)

1 more reply

Symbiote3y ago

Yours is a rare anti-EU comment arguing that the EU should extends its regulation beyond its borders/citizens.

throwaway677433y ago

It is neither an anti EU comment nor arguing for extending regulation beyond its borders, but alright

Symbiote3y ago

That is the case. Stripe will be charging the American businesses with American customers 2.9% + 30¢, and their European businesses with European customers 1.5% + 25¢.

j / k navigate · click thread line to collapse

0 comments

throwaway677433y ago

hocuspocus3y ago

It doesn't apply to the card scheme, it applies to interchange, i.e. the part that goes back to the card issuer.

I don't see how that is dumb, the EU cannot do anything about issuers outside of it, and PSPs have to reflect the huge difference in interchange fees one way or another.

throwaway677433y ago

Correct, merchants do not charge interchange, banks/networks do, and its dumb because it increases the costs of doing business in the EU (which as I said, makes it more insular)

1 more reply

Symbiote3y ago

Yours is a rare anti-EU comment arguing that the EU should extends its regulation beyond its borders/citizens.

throwaway677433y ago

It is neither an anti EU comment nor arguing for extending regulation beyond its borders, but alright

Symbiote3y ago

That is the case. Stripe will be charging the American businesses with American customers 2.9% + 30¢, and their European businesses with European customers 1.5% + 25¢.

j / k navigate · click thread line to collapse