Stripe increasing "instant payout" fees by 50%

Why is this such an important news? Do people regularly use instant pay out? I would think that it's mostly for emergency situations. Normal payout is still free.

Stripe will nickel and dime you to death.<p>The last time I created an invoice manually it tried to upsell me on a far more expensive plan just so I can group things on an invoice. Even worse, adding a recurring product to a quote results in an upsell.<p>It’s honestly embarrassing. Feature-gating things with 0 marginal cost feels desperate.

What would be the reason for them to boost this fee right now? Is it just a pure profit play? That is, they think they can extract more cash from the people who are reliable instant-payout users (rather than losing them to standard payouts)?<p>Does this portend anything for the company, in the way that not backfilling positions means that layoffs may be imminent? Or perhaps a corporate transaction like an IPO?

&gt; Navigate to the Payouts section of your Balances page &gt; Filter by “method”<p>I have no &quot;method&quot; filter on that page, only &quot;date&quot;, &quot;amount&quot; and &quot;status&quot;. Also they talk about 2 business days payments as default but in the settings you can only choose between automatic every day &#x2F; week &#x2F; month.<p>Since the instant payout is kind of a loan and you have to request it, pretty sure it doesn&#x27;t affect me but it&#x27;s all very confusing.

A more honest title to me:<p>Stripe increasing &quot;instant payout&quot; fees from 1% to 1.5% on US<p>Current title:<p>Stripe increasing &quot;instant payout&quot; fees by 50%

The title feels a bit disengenious. Technically, yes, it was increased by 50% of what it was, but it is a shift from 1% to 1.5%, not up to 50% of each transaction.

Fees on payment methods are a good example of the kind of friction we wanted to get rid of, agreeing to use these intermediaries.<p>If we&#x27;ve just replaced stupid inter-bank 3 day cheque clearing bullshit fees with stupid microtransaction fees which are variable at-will by the guy in the middle, whats the point?<p>Money is regulated. Money flows should be regulated. This industry should be regulated, and the fees set to cost recovery, not profit point. If that reduces to one interchange agency per economy, I&#x27;d be fine: Nationalise them all.<p>Does it cost the CPU more to process $1b in one transaction than to process 10c?

That isn&#x27;t the title of the page and a great illustration of why we should always speak in percentage points or real numbers. &quot;Shark attacks increase by 300%&quot; (from one to four) is a textbook example of a tabloid headline.

If I remember correctly, payouts always take two or three days to clear, to comply with all of the settlement and legal processes.<p>The “instant payout” is actually a temporary loan from an entity already approved as having all funds available for immediate disposal at multiple links in the chain. This is then used to create the illusion of an instant payout… while the “loan” guarantor receives payment 2-3 days later.<p>This is also why there’s actually a “instant payout” limit on your Stripe account, almost like a credit limit - because it basically is credit.

1.5% for a 2 day loan is an APR of what? More than 270%.

Anyone have a list of providers that use Stripe Connect?

Payday loans are cheaper

In other news, the cost of no ey has increased several hundred percent since 2019.

Yawn. In some countries at least, (mine for example) Paypal does the same. If I get a payment (and let me add that I detest paypal but, such are the choices of some employers), I can wait 24 to 48 hours for my money, or I can get it instantly at any time Monday to Friday between 6:15 am and 10 pm, but at an additional cost of roughly 3 dollars. Bear in mind that this is on top of their atrocious, thieving obligatory exchange rates and any other fees they tack onto payments sent to you.<p>Of course I&#x27;m nearly certain that sending me that money instantly costs Paypal nothing, but enshittification creeps into all things, sort of like the dust created by dead skin and human trash. It permeates. Though in Paypal&#x27;s case, shitty service has been a byword for decades already.<p>Edit: when occasionally receiving payments in crypto on the other hand, I get charged minimal fees, can convert to my local currency at essentially market exchange rate, and can have the money transferred to my actual bank account at any time 24&#x2F;7 for free. Yes yes, HN hates crypto and blah blah, but outside the bubble, there are people who find these things useful.