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Comment by GordonS | Hacker News Reader

Yikes, these are substantial prices hikes!

And what's this new nonsense about increased costs for "premium" cards?

From here[0], it describes these cards as "Commercial, corporate, or business cards issued by Visa and Mastercard" - but why would Stripe charge more for the use of such cards? Surely the chargeback rate for businesses must be orders of magnitude lower than that of consumer cards?

https://support.stripe.com/questions/what-s-the-difference-b...

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Straight from the card networks e.g. https://www.visa.co.uk/dam/VCOM/regional/ve/unitedkingdom/PD...

Processing a "Visa Infinite Business Credit" @ 1.5% would lose them money.

Isn't it the case that these 'premium' cards usually require full balance settlement each month? In which case there is no opportunity for the card issuer to earn interest on outstanding balances as there is with personal credit cards so the card issuers add the 'lost' income to the transaction fee?

Yes, but isn't it also the case that companies pay a monthly fee for those cards, offsetting against that?

Consumer card fees are capped pretty low in EU (and still UK I guess), something like 0.30%.

Commercial card fees are not capped and are more around 1.5% to 2.0%

If anything, now that they have split consumer and commercial cards in their fees, it's the consumer card fees that are shockingly high.

This is the knowledge I was missing - I had assumed fees were capped across the board.

Processing rates for Consumer cards are capped by law in the EU(and probably still in the UK).

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