#nobody-questions

1 messages · Page 1 of 1 (latest)

hearty pendant
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hello, pasting your question here and answering one sec

Hi, I have these scenarios, and I want to know how stripe calculate fees for each.
Our Platform Uses: Connect with Standard Accounts and Destination Charge with on_behalf_of.
Scenario One:
Platform and Account Bank Account Currency: CAD.
Payment Method: Credit Card or Wallet through Checkout Session.
Amount: 100C$.
Fee Amount: 10C$.
Stripe fees are 2.9% + 0.3C$.
With the above mentioned, The Account will receive 90C$, Stripe will get 3.2C$, and my platform will get 6.8C$.
Now, since I’m using checkout session and I can’t control how things work there, what happens if the customer pays with a USD card? Are the 2% for currency conversion going to be added on my fee amount? Or the customer will be charged more for currency conversion? And What if they use an international card?

Scenario Two:
Same information above, but the account bank account currency is USD. Then who will be charged for the currency conversion rate, my platform or the account? And The rate will be applied only on 90C$, Right?

fast ember
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Thanks, and still waiting

hearty pendant
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hey sorry I missed this

what happens if the customer pays with a USD card? Are the 2% for currency conversion going to be added on my fee amount?
yes, this is a Destination Charge so the Platform is charged that fee

And What if they use an international card?
same as above

Then who will be charged for the currency conversion rate, my platform or the account?
what does "fx conversion charge" mean, do you have an example? typically the customer is charged for that by their bank

fast ember
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even when I asked the customer to pay in my currency?

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As for the second scenario, I can't control the currency of my users when they setup their account.

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it can be same as mine in CAD, or in any other currency like USD.

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So what happens if their account is USD, but the amount sent by customer is CAD

hearty pendant
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even when I asked the customer to pay in my currency?
your currency could be "USD" but customers card could be from Canada hence does conversion from CAD -> USD

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So what happens if their account is USD, but the amount sent by customer is CAD
when charging a Canada Customer in USD, the converted USD amount is charged

fast ember
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and there is no way to calculate these fees before they are charged, right?

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Specially that there are many cases to consider.

hearty pendant
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and there is no way to calculate these fees before they are charged, right?
you can if you detect what the card being paid for is from, the PaymentMethod object has a card.country field

is your goal to figure out fees ahead of time to account for your price?

fast ember
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Yes, I'm trying to find a way to setup a minimum amount of fees, yet it can cover all cases.

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I'm considering using percentage, like 6%. This way, My fees can cover all stripe fees. But if there is a better way to determine the amount ahead of time, I then would charge 4% if no extra charges are to be applied.

hearty pendant
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gotcha, typically you would not adjust price based on what fees could be charged, you should rather build your pricing to handle for fees regardless of per charge fees

fast ember
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kinda lost there, can you explain more

hearty pendant
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like your pricing shouldn't be sensitive to the fee differing by 1-2% on every charge you make.
your price should be more holistic and take into account your cost + margin + fees in a way that a 4% vs 6% fee doesn't make a difference.

fast ember
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That makes sense, but its a client choice. Then I think we better move to Direct Charge.

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Now it makes sense.

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thanks for the help.