alt Hacker NewsCan someone explain to me if EU card transactions are capped, why Stripe charges me (US) the full ride on my EU customer's cards? In fact, I get charged even more for EU cards – perhaps as much as 2.5% extra.
I just checked and I get charged ~8% in fees on a 10 euro transaction on Stripe. Of course some of that is the low transaction amount (flat 0.30), but it's brutal for a small business like myself.
2.9% + 1.5% (intl card) + 1% (currency conversion) + 0.30
Payment amount (€1.00 EUR = $1.15253 USD)
€10.00 EUR -> $11.53 USD
Fees
Total: - $0.93 USD
Stripe currency conversion fee
- $0.12 USD
Stripe processing fees
- $0.81 USD
Net amount
$10.60 USD
Replies
bijowo1676 • yesterday at 9:10 PM
perhaps they are capped only for EU merchants, because EU government works to protect their own companies and citizens from foreign artificial unregulated monopolies.
in US, the government is more protective of private monopolies due to lobbying
➕ show 1 reply
colechristensen • yesterday at 9:10 PM
You're not in EU so the full stack is happy to charge you whatever it can.
sph • yesterday at 9:11 PM
Uh… more profit?
The EU only capped interchange fees, which is the amount that goes to the bank that issued the card. It did not cap the fees that go the your PSP. Which makes sense, since you can pick the PSP you do business with, but you can't pick the bank that issues your customers' cards.
(And I don't think it applies to US merchants like you anyways)
https://ec.europa.eu/commission/presscorner/detail/en/ip_15_...