What? The product's page says it charges 1% + whatever Stripe charges ("generally" 2.9% + $0.3). A quick search says that Square charges 2.6% + $0.10 per in-person transaction. Seems like that this product is more expensive than Square.
The only thing I can think of is because certain issuers/networks treat Card Not Present transactions differently for chargeback disputes. For example, depending on the network, if you fail to collect CVV or zip code, you automatically lose second presentment rights. I don’t know how CNP vs CP charges are priced, but the mere presence of different fraud liability treatment leads me to believe there’s a fundamentally different lens applied to online transactions, and real life (less likely to be fraud?) transactions.
Maybe they already have Stripe and don't do very many transactions this way, so they're not that cost-sensitive? For exceptions to their normal way of doing business, convenience might be more important.
Stripe is supported in many more countries. In europe for exaple nobody ever heard of Square on the other hand people wait with open hand for Stripe to come to their country.
My question is: why doesn't Stripe just include this feature themselves? Not enough of a market? But as an integrated feature it would certainly be higher (probably much higher) than what this third party app is making.
The margin might be ample, but the fact that it adds up to only $60K per month might not attract much competition. This is no unicorn, it pays the bills for a couple of families.
