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Comment by puzzlingcaptcha | Hacker News Reader

Higher costs of compliance in the EU perhaps?

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?

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)

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.

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)

How does lowering fees increase the cost of doing business exactly?

The only businesses suffering from the cap are issuing banks.

Fees are not the only cost of business, compliance is too - and things like if you want to enjoy lower intra-EU costs then you need to be in the EU which is an added cost as a non-EU business, etc - it's not as simple as "fees more eu bad"

That's true pretty much everywhere on Earth.

Some countries smaller than the EU bloc have more complex regulations regarding online payments.

The EU managed to cut fees in half for its population and businesses, if you want to stay outside then why do you care?

You're kind of agreeing at this point, despite what the EU believe they are not self sufficient and require international business - the only people who lose out by that not happening are citizens and there are already enough reasons doing business (or even buying) stuff from outside the EU is a tedious and expensive chore

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

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

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¢.

Fees in the EU tend to be considerably lower than in the US

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