[HN Gopher] Changes to Stripe Billing
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       Changes to Stripe Billing
        
       Author : mik3y
       Score  : 51 points
       Date   : 2024-07-10 21:07 UTC (1 hours ago)
        
 (HTM) web link (support.stripe.com)
 (TXT) w3m dump (support.stripe.com)
        
       | binarymax wrote:
       | This is the text I received in an email just now, which is for
       | people on the 'Starter Plan' and easier to understand than the
       | linked article.
       | 
       | 1. Today we're deprecating the Billing Starter plan (your current
       | plan) and moving all customers to a single, comprehensive plan
       | that includes all of Stripe Billing's features. Your pricing will
       | change from 0.5% to 0.7% of Billing volume. However, we'll
       | maintain your current pricing for one year, until June 30, 2025.
       | Pricing of one-time invoices through Stripe Invoicing is
       | unchanged.
       | 
       | 2. We're also introducing subscription-based pricing for Billing.
       | This can make your monthly costs lower and more predictable
       | compared to pay-as-you-go pricing. Learn more and switch plans in
       | the Stripe Dashboard.
        
       | chirau wrote:
       | This sounds like a pretty significant increase. This is like 40%
       | (or 60%?) increase, no? The new pricing seems to bundle 'volume
       | billing' and 'invoicing', was the latter previously free?
        
       | dinobones wrote:
       | I love Stripe, blah blah blah, Stripe has "good" le docs and good
       | dev experience and w/e.
       | 
       | But now that they have market share they are seemingly becoming
       | more greedy.
       | 
       | I think they are overplaying their hand. There's no reason that
       | these charges should be %-based. And I'm almost certain for large
       | enterprise customers they're not; there's probably custom
       | negotiated contracts for those cases.
       | 
       | I hope we get more players in this space that can force them to
       | be more competitive on pricing.
        
         | toomuchtodo wrote:
         | They are in a valuation trap based on forward looking
         | fundamentals.
        
           | giancarlostoro wrote:
           | I don't get why every tech company wants to IPO especially
           | profitable ones. I'd much rather stay private with my money
           | factory, and if I need some loans to expand, then so be it.
           | Microsoft did it for Azure, look how well that worked out. I
           | feel like a lot of companies do worse after going on the
           | Stock Market. The stock market is where long term companies
           | go to be screwed on a whim.
        
             | toomuchtodo wrote:
             | When you IPO, you're getting wealthy off of Other People's
             | Money flowing in creating liquidity. When you have to buy
             | out existing cap table folks (either through enterprise
             | cashflow or financing), it becomes harder. An artifact of
             | ZIRP evaporating after entire businesses were built on the
             | VC IPO flip model (and profitability becoming king over
             | growth at any cost).
             | 
             | Very similar to the PE crunch currently in progress for the
             | same reason: interest rates that rose fast and will remain
             | higher for longer.
             | 
             | It will take time for everyone's expectations and actions
             | to reach the new macro reality, with current participants
             | attempting to "find a way out" that is most favorable for
             | the circumstances.
        
             | lobsterthief wrote:
             | Because the employees at these companies don't share in the
             | "money factory" mentality. Personally I'd rather work
             | somewhere and get paid well and have stability, but
             | unfortunately most businesses just pay "market" which is on
             | par with those who offer options.
        
             | softwaredoug wrote:
             | When you're a VC, you expect 9 out of 10 to utterly fail.
             | So you need that 1 out of 10 to turn into a high-growth
             | Unicorn.
        
             | ptero wrote:
             | Most employees expect an IPO exit if a business is
             | successful. I suspect that "if we hit it, we will share
             | profit with you" would be a lot less attractive for an
             | employee.
        
               | toomuchtodo wrote:
               | Most of the world runs on engineering done by folks not
               | expecting an IPO payday (and instead, base, bonus, work
               | life balance, etc). >90% of startups fail and never have
               | a payday [1]. Employees will find opportunities elsewhere
               | and expectations will need to more closely align with
               | reality for those holding out for the "before times" that
               | are unlikely to exist again [2].
               | 
               | [1] https://danluu.com/startup-tradeoffs/ |
               | https://news.ycombinator.com/item?id=40363262
               | 
               | [2] https://news.ycombinator.com/item?id=11112367
        
               | ptero wrote:
               | Of course, but a small portion of the employees,
               | disproportionately concentrated at startups, are willing
               | to take a bet on an eventual exit. They accept a 90+%
               | chance of a company going belly up and a 7-digit payday
               | if it becomes a roaring success.
               | 
               | But without an IPO it becomes a chance for a small
               | royalty payment, and this is a lot less attractive
               | success.
        
             | pknomad wrote:
             | I guess if those tech companies are VC-funded... isn't the
             | whole point to IPO?
             | 
             | I'm saying that's neither right nor wrong but there are
             | examples of the good on both sides; Jetbrains and
             | Crowdstrike seems to be doing fairly well despite staying
             | private and going IPO, respectively.
        
             | lotsofpulp wrote:
             | >The stock market is where long term companies go to be
             | screwed on a whim.
             | 
             | What data do you base this on? "Long term" companies that
             | do not choose to become publicly listed go out of business
             | all the time. Some of them even get obviated by competitors
             | who do choose to go public, and as a result, have a ton
             | more money to outcompete the non public ones.
        
         | Animats wrote:
         | > But now that they have market share they are seemingly
         | becoming more greedy.
         | 
         | Of course. Go read Theil's "Zero to One" again.
        
       | bigyikes wrote:
       | Starter pricing was 0.5%.
       | 
       | Scale pricing was 0.8%.
       | 
       | Both plans were consolidated into a single plan which is 0.7%.
       | 
       | This is good news if you were a Scale customer and bad news if
       | you were a Starter customer.
        
       | csdreamer7 wrote:
       | Curious what people use besides Stripe (or Paypal) or if they are
       | planning on moving away from it.
        
         | a13n wrote:
         | Adyen if you're big enough.
        
       | b2bsaas00 wrote:
       | There is no reason why this feature is % based. What alternative
       | we have? 0.7% just to trigger a charge every month it makes not
       | sense.
       | 
       | For international card is 0.7%+3.9%=4.6% fee for payment!
        
         | brianwawok wrote:
         | Yup. Keep testing out those alternatives, I pay way too much
         | money to Stripe every month.
        
         | duskwuff wrote:
         | > What alternative we have?
         | 
         | A monthly plan: https://stripe.com/billing/pricing
         | 
         | Ranges from ~0.62% (up to $100k/mo) to ~0.57% ($1M/mo).
        
         | cmcaleer wrote:
         | It's things like this that make me disappointed crypto didn't
         | find favour as a payment option. I can transfer a million
         | dollars instantly for ~free on (good) blockchains. Vendors
         | aren't at the mercy of Stripe closing their account. They're
         | not at the mercy of payment processors deciding they're not
         | allowed to sell porn. The UX has improved considerably. It's
         | not quite 'there', but much better than before.
         | 
         | Yes as a user I don't get chargeback disputes. That's why I pay
         | with crypto if I trust the vendor or if it's for a small
         | amount. Sometimes the savings even get passed to me. If I want
         | protection, I use my credit card.
         | 
         | Stripe seem interested in this too given their push for crypto
         | payments that's supposed to arrive soonish. I'm curious how
         | much of the savings will get passed on to users. But maybe
         | it'll just fizzle out again.
        
       | czzarr wrote:
       | as a years-long customer for whom prices keep increasing while
       | product keeps getting worse (fraud detection and dispute handling
       | in particular), I'm really hopeful that a decent competitor shows
       | up soon.
        
       | glzone1 wrote:
       | The real question is what payment providers handle ACH well for a
       | reasonable price. Say lots of $500 invoices. Underlying costs on
       | the ACH platform is pretty low. Would love to find a $3 capped
       | provider. Intuit is uncapped, so a $10,000 payment costs $100 per
       | payment on their platform. Ouch!
        
       | andrewstuart wrote:
       | Anyone have any experience of alternatives and competitors?
        
         | Kailhus wrote:
         | Adyen is probably the closest one. Had no issue integrating and
         | theirs docs were good
        
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       (page generated 2024-07-10 23:01 UTC)