Stripe Connect Express Fees Question
I had an idea for a marketplace and started digging in to Stripe Connect. I just want to make sure I am understanding the pricing schemes correctly. Keeping it simple lets just assume credit card payments only, all in the US, no foreign accounts or currencies, etc etc.
I would like my platform fee to be 0.1% initially, but with growth I would like to capitalize on the margin that IC+ could unlock.
I can set up the connect accounts as full accounts and add that 0.1% as an application fee that stripe collects for me and sends. So the customer is paying 3.0%, not bad. BUT I think in this case the only way I could make more money is by upping that application fee and I would not be able to capitalize on lower rates for processing as my platform grew (correct me if I'm wrong here).
So it seems like express accounts are the way to go with a default pricing scheme of 3.0% for credit cards. Then when the platform becomes an obvious raging success, our 2.9% cost would come down and our profit increases.
All seemed dandy until I noticed on the Connect pricing page that payouts to the customer's account would incur a 0.25% payout fee. Does that mean if I were charging 3.0% then we would actually be _losing_ 0.14% overall (3.0 - 2.9 - 0.25)? So the minimum we would need to charge is 3.25% in order to keep our 0.1% margin? At least until the base rate was able to be negotiated down as volume increased?
For some reason wrapping my head around the different account types has been extra confusing for me to figure out.