With Stripe’s new price increase officially in effect, we’ve got everything you need to know at our latest blog.
As Stripe has warned for the last few months, their pricing for manually entered credit card transactions has INCREASED by 0.5% . This means that if you are keying in payments manually into Stripe, your cost of doing business as a merchant just increased by 0.5% (50bps) per transaction. If you are a software platform whose merchants utilize Stripe’s payment share and as a payments provider for manually keyed transactions, you are now having to sell your payment processing to merchants at a staggering rate of 3.4% + $0.30 per transaction.
While not uncommon for legacy processors to raise pricing, Stripe’s payment share and latest price increase is still pretty excessive. They defend the hike by noting that there is a higher rate of fraud associated with gathering customer payment information over the phone or via an unencrypted source. Although inflation and the current rising interest rates can be to blame for some price hikes, they should prioritize their customer’s at least when it comes to Stripe’s payment share and processing payments.
To put the price change into perspective, a 0.5% increase equates to $500 for every $100,000 processed. While the card brands themselves are known for increasing rates periodically to merchants (known as interchange), their price changes are usually capped at 0.1%.
Get Transparent Pricing With Tilled
Unlike our competition, Tilled will never nickel and dime our Partners or their merchants. We offer transparent, customizable pricing that makes it easy for software companies to monetize payments and add more revenue to their businesses — not more costs. At Tilled, what you see is what you get, with no hidden fees or price hikes on the horizon.
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