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  • Explanation of Stripe Fees

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    Darth Moxy

    The processing rate is between you and Stripe, with whom we have partnered with to handle merchant processing. Allmoxy does not have the ability to set your rate, but does add a small processing fee. Rates are determined by and negotiated with Stripe after taking into consideration several variables, plus industry standard indexes. Just like any processor, you negotiate your fee with them based on your volume, type of business, history, etc. We recommend revisiting your rates with Stripe after you have some history with them.

    You will likely start out at a rate slightly higher than their published introductory rate. This rate will likely seem higher to you than what you are used to. There's a very good reason for that.

    Merchant fees are a commodity, so don't be fooled, any merchant saying they can get you a 1.9% rate is only showing you part of the story. They use these "poster" rates to compete with other merchants. They do not typically show you any additional processing fees, which you'll see in abundance on your statement. Also, they're typically only showing you one type of card transaction. For example, a debit card will likely get a better rate than a high points rewards card. So, you're actually paying 1.9% once in a while, and 4.9% the rest, plus a bunch of additional fees (today, most companies are paying with rewards cards). The additional fees and higher rates appear on a monthly statement that is very difficult to read. You never really know what you'll be paying until the month is over and your money is already spent.

    Stripe is different, because you pay one easy to understand percentage without any other hidden fees, and it is transferred as the money moves, so you never have a statement at the end of the month. Also, you don't have to wait for underwriting to be granted an account, and can start accepting payments as soon as you sign up.
    You can read about Stripe fees here: https://stripe.com/us/pricing

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