Accepting Micro Payments For Your Website Or On-line Enterprise

Accepting Micro Payments For Your Website Or On-line Enterprise

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

Before we examine the various options and solutions in dealing with this pervasive problem, we should always first define what constitutes a micro payment.

A micro cost is a payment for an merchandise 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 - $three range would be considered as micro payments. A 25 cent fee for a download or a 5 cent fee for a SMS are very good examples of lesser worth micro payments.

There are primary methods that a web based seller might employ to simply accept a micro payment. The primary method is to use a credit card, however the merchant fees would be fairly high to accept a big number of payments for $1 and $2 micro funds, and this just isn't normally a cost environment friendly option.

Some on-line enterprise owners whose websites sell micro payment valued good and providers will ask prospects for their credit card details, and can process charges and invoices to their clients' cards when account balances attain specified cost threshold amounts.

Another variation of this methodology is to charge the customer's credit card a minimal cost quantity of (say $10), and a credit in this amount is then posted to the user's account, which depletes as nominal value goods and services are purchased from the vendor.

The issue with this method is that prospects don't like offering their credit card details to strangers, and so they do not like the idea of creating a down cost buy commitment for items or services which the shopper may ultimately resolve to not purchase.

The opposite option is to process payment for every micro transaction because it happens utilizing an internet payment system, and there are just a few viable options with several corporations competing in this house, some of which are a lot more value environment friendly than others, as I shall explain.

Let's look at the next example:

Consider a micro cost within the quantity of $2 USD sent internationally (from one country to a different) using a enterprise account.

I've compared the fees that every of the following online payment processors would charge to deal with this payment, and present the results beneath, 소액결제현금화 from highest to lowest cost: $0.ninety nine flat price = $0.99 (49% commission) 1.9% +$0.40 = $.44 (22% commission) Regular 2.9% + $0.30 = $0.36 (18% commission) 2.5% +$0.25 = $0.30 (15% fee) Micropay 6% + $0.05 = $0.17 (8.5% fee) 5% + $0.05 = $0.15 (7.5% commission) 1.5% no minimal = $0.03 (1.5% commission)

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

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