[parito]

One of the bigger drawbacks of Adyen vs Stripe, although we wanted to work with them a lot, is, they require a crazy reserve (in the millions) if your model is subscription based. The logic behind it from them is, that they must be able to refund all your customers in case you go bankrupt, and you have subscribers left hanging without full-filled service they paid in advance for.

Although I get the logic behind it, not one other PSP requires such a huge reserve, therefore we decided not to work with them.

Todays payments world is v competitive and players like checkout.com and many others are v aggresive trying to disrupt stripe's dominance in this area

[superplussed]

Are you saying that to process recurring fees on Stripe (as so many startups do) that you need this reserve?

[phsource]

Definitely not, from experience. I think the opening poster means that Adyen needs such a large reserve, since I definitely know subscriptions-based startups that don't have any reserve with Stripe

[lsaferite]

Adyen is crazy with the reserves. It's the sole reason we went with Stripe over Adyen.

[superplussed]

phew :)

[parito]

yes, I meant adyen, not stripe, sorry for confusion

[ftoo]

Wouldn’t they simply require a reserve that is proportional to the amount you’re charging for the recurring payment?

[parito]

Usually most PSP's do have some reserve rule, like keeping the 5% up to an X amount of sum, but with Adyen their team calculated the X amount to be in the millions - not one PSP (and we worked with all of them) had this.

[ftoo]

So it was still percentage based? I’m a bit confused from your phrasing. Sounds like the problem was that 5% of X could end up being millions, because it had a high ceiling? That doesn’t sound so bad.

[xfour]

Also, when talking to them they were stuck on requiring photos of a passport as a requirement for the recipient of the payment if I remember right. In the U.S. That's a non-starter as many people don't have passports and even if they did wouldn't be used to providing them in a business setting, so we ultimately passed.

[user5994461]

I used Adyen and they never needed that.