This is a disaster. Simply put, this change makes Stripe a nonviable option as an e-commerce payment
processor. The modern consumer expects easy, no questions asked refunds. How many people buy a few shirts/shoes of different sizes knowing that they will return the ones that do not fit? How can a retailer
provide that when there is now a 2.9% (in our case 3.5%) charge added on every item refunded?
This change directly hurts smaller retailers/e-commerce sites who are not big enough to negotiate smaller processing fees with Stripe.
I run a niche e-commerce site in Canada where the majority of my customers are located in the US.
This puts my processing rate at 3.5%. My products are priced anywhere from $1k to $6k.
So now with this change, I could pay up to $210 for when a customer simply changes their mind. I guess I could enact a strict NO REFUNDS policy but that will put me at a severe disadvantage vs the bigger retailers.
As things stand I would only recommend Stripe for recurring subscription billing.
This change directly hurts smaller retailers/e-commerce sites who are not big enough to negotiate smaller processing fees with Stripe.
I run a niche e-commerce site in Canada where the majority of my customers are located in the US. This puts my processing rate at 3.5%. My products are priced anywhere from $1k to $6k. So now with this change, I could pay up to $210 for when a customer simply changes their mind. I guess I could enact a strict NO REFUNDS policy but that will put me at a severe disadvantage vs the bigger retailers.
As things stand I would only recommend Stripe for recurring subscription billing.