The number one drawback for on-line sellers and website owners accepting and processing micro funds is the very high fees charged by cost processors and credit card firms, which can typically eat right into a significant portion of the payment revenue stream.
Earlier than we look at the various options and solutions in coping with this pervasive drawback, we should first outline what constitutes a micro payment.
A micro payment is a fee for an merchandise or service that is of low value. For instance, website funds for ring tones, pay-per-views, downloads, e-books, and subscriptions in the $1 - $3 range can be considered as micro payments. A 25 cent payment for a download or a 5 cent fee for a SMS are excellent examples of lesser value micro payments.
There are two basic methods that an internet seller may make use of to accept a micro payment. The primary technique is to use a credit card, but the merchant fees would be fairly high to accept a big number of funds for $1 and $2 micro funds, 소액결제
and this shouldn't be normally a cost environment friendly option.
Some online business owners whose websites sell micro cost valued good and companies will ask customers for his or her credit card particulars, and will process charges and invoices to their clients' cards when account balances reach specified fee threshold amounts.
One other variation of this technique is to charge the shopper's credit card a minimum cost amount of (say $10), and a credit in this quantity is then posted to the consumer's account, which depletes as nominal worth items and services are bought from the vendor.
The issue with this methodology is that clients don't like providing their credit card particulars to strangers, and they don't like the thought of creating a down payment purchase dedication for items or services which the shopper might in the end resolve not to purchase.
The opposite option is to process cost for every micro transaction as it happens using an online payment system, and there are a few viable options with several companies competing in this space, some of which are a lot more cost efficient than others, as I shall explain.
Let us take a look at the next example:
Consider a micro payment in the quantity of $2 USD sent internationally (from one country to a different) using a business account.
I've compared the fees that each of the next on-line fee processors would charge to deal with this payment, and current the results below, from highest to lowest cost:
ZayPay.com $0.ninety nine flat fee = $0.ninety nine (49% fee)
Moneybookers.com 1.9% +$0.40 = $.forty four (22% commission)
PayPal.com Regular 2.9% + $0.30 = $0.36 (18% commission)
AlertPay.com 2.5% +$0.25 = $0.30 (15% commission)
PayPal.com Micropay 6% + $0.05 = $0.17 (8.5% fee)
Payments.Amazon.com 5% + $0.05 = $0.15 (7.5% fee)
CashSender.com 1.5% no minimum = $0.03 (1.5% fee)
The highest charges can be incurred if utilizing the providers of Netherlands-based ZayPay and UK-based Moneybookers. PayPal's common payment service would result in an 18% fee fee, and even their lite service for mirco funds results in an 8.5% commission. By far the lowest value micro fee processor is Canadian primarily based CashSender, as their 1.5% commission doesn't have a fixed price component. Thus, CashSender's payment is even a fraction of the price of the next lowest provide on the list.
Many on-line sellers and website owners settle for micro fee because the life-blood of their business operations. This means, many such funds are processed over the course of each month, throughout the year.