Accepting Micro Payments For Your Website Or Online Business

Accepting Micro Payments For Your Website Or Online Business

The number one drawback for online sellers and website owners accepting and processing micro funds is the very high fees charged by cost processors and credit card companies, which can typically eat right into a significant portion of the payment income stream.

Earlier than we study the varied options and options in dealing with this pervasive problem, we should first outline what constitutes a micro payment.

A micro payment is a payment for an item or service that's of low value. For example, website payments for ring tones, pay-per-views, downloads, e-books, and subscriptions within the $1 - $3 range could be considered as micro payments. A 25 cent cost for a download or a 5 cent payment for a SMS are superb examples of lesser worth micro payments.

There are fundamental strategies that an internet seller would possibly make use of to accept a micro payment. The first technique is to use a credit card, but the merchant charges would be quite high to simply accept a big number of payments for $1 and $2 micro funds, and this is just not usually a cost environment friendly option.

Some online business owners whose websites sell micro fee valued good and services will ask customers for their credit card details, and will process charges and invoices to their prospects' cards when account balances reach specified cost threshold amounts.

Another variation of this method is to charge the shopper's credit card a minimum charge quantity of (say $10), and a credit in this amount is then posted to the person's account, 소액 결제 현금 which depletes as nominal worth items and companies are purchased from the vendor.

The problem with this methodology is that prospects do not like offering their credit card details to strangers, and so they don't like the thought of making a down cost purchase commitment for items or companies which the shopper may ultimately decide to not purchase.

The other option is to process cost for each micro transaction because it occurs using a web based cost system, and there are just a few viable options with a number of corporations competing in this house, a few of which are much more price efficient than others, as I shall explain.

Let's take a look at the following example:

Consider a micro payment in the amount of $2 USD sent internationally (from one country to another) using a enterprise account.

I've compared the charges that each of the following online cost processors would cost to deal with this cost, and present the results under, from highest to lowest cost: $0.99 flat payment = $0.99 (forty nine% fee) 1.9% +$0.40 = $.44 (22% commission) Common 2.9% + $0.30 = $0.36 (18% fee) 2.5% +$0.25 = $0.30 (15% fee) Micropay 6% + $0.05 = $0.17 (8.5% fee) 5% + $0.05 = $0.15 (7.5% fee) 1.5% no minimal = $0.03 (1.5% fee)

The highest charges could be incurred if utilizing the companies of Netherlands-based mostly ZayPay and UK-based Cashbookers. PayPal's regular payment service would end in an 18% cost fee, and even their lite service for mirco funds ends in an 8.5% commission. By far the bottom cost micro cost processor is Canadian based mostly CashSender, as their 1.5% fee doesn't have a fixed fee component. Thus, CashSender's payment is even a fraction of the price of the following lowest present on the list.

Many on-line sellers and website owners accept micro payment because the life-blood of their enterprise operations. This means, many such funds are processed over the course of each month, throughout the year.

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