Micro Payments For Your Website Or Online Business - Easy Way of Cash The top problem for online sellers 소액결제 현금화 and website owners accepting and processing micro payments may be the very good fees charged by payment processors and bank card companies, which could typically eat into a significant portion of the payment revenue stream. Before we examine the various options and solutions in dealing with this pervasive problem, we must first define what constitutes a micro payment. A micro payment is a payment for an item or service that is of low value. For instance, website payments for ring tones, pay-per-views, downloads, e-books, and subscriptions in the $1 - $3 range would be considered as micro payments. A 25 cent payment for a download or perhaps a 5 cent payment for a SMS are excellent samples of lesser value micro payments. You will find two basic methods that an online seller might employ to just accept a micro payment. The very first method is to employ a credit card, but the merchant fees will be quite high to accept a sizable quantity of payments for $1 and $2 micro payments, and this isn't usually a inexpensive option. Some online business owners whose websites sell micro payment valued good and services will ask customers for his or her credit card details, and will process fees and invoices with their customers'cards when account balances reach specified payment threshold amounts. Another variation of this method would be to charge the customer's credit card the absolute minimum charge level 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 problem with this process is that customers don't like providing their bank card details to strangers, and they don't like the thought of making a down payment purchase commitment for goods or services which the customer might ultimately decide never to purchase. One other option is to process payment for each micro transaction since it occurs having an online payment system, and there are always a few viable options with several companies competing in this space, some which are a lot more cost effective than others, as I shall explain. Let's consider the following example: Think about a micro payment in the total amount of $2 USD sent internationally (from one country to another) employing a business account. I've compared the fees that all the following online payment processors would charge to deal with this payment, and present the results below, from highest to cheapest: ZayPay.com $0.99 flat fee = $0.99 (49% commission) Moneybookers.com 1.9% +$0.40 = $.44 (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% commission) Payments.Amazon.com 5% + $0.05 = $0.15 (7.5% commission) CashSender.com 1.5% no minimum = $0.03 (1.5% commission) The best fees could be incurred if utilising the services of Netherlands-based ZayPay and UK-based Moneybookers. PayPal's regular payment service would result in an 18% payment commission, and even their lite service for mirco payments results in an 8.5% commission. Definitely the cheapest cost micro payment processor is Canadian based CashSender, as their 1.5% commission does not need a fixed fee component. Thus, CashSender's fee is even a portion of the cost of the next lowest provide on the list. Many online sellers and website owners accept micro payment as the life-blood of their business operations. This implies, many such payments are processed within the course of every month, through the year. Therefore, to see the real bottom line effectation of the fee differences presented above, we must factor the information up to a one year analysis. Let us assume a typical online seller must process 1,000 of the $2 payments each month, which means 12,000 such payments each year (representing $24,000 in annual micro payment revenues). We then need to regulate our data to reflect the annual fees using each of the respective online payment services, and the information is presented the following, again listed from highest cost to lowest cost: ZayPay.com ($0.99 flat fee) X 12,000 payments = $11,880 Moneybookers.com (1.9% +$0.40) X 12,000 payments = $ 5,256 PayPal.com Regular (2.9% + $0.30) X 12,000 payments = $ 4,296 AlertPay.com (2.5% +$0.25) X 12,000 payments = $ 3,600 PayPal.com Micropay (6% + $0.05) X12,000 payments = $ 2,040 Payments.Amazon.com (5% + $0.05) X 12,000 payments = $ 1,800 CashSender.com (1.5% no minimum) X 12,000 payments = $ 360 The most well-known company in the web payment space is PayPal, that will be owned by eBay. PayPal's regular online payment service is really $4,000 per year more costly compared to low cost leader. PayPal's lite micropay service is $1,680 more expensive than the good deal leader, and even Amazon, which can be the second place inexpensive leader is four times more expensive compared to the low cost leader.
In summary, online sellers and website owners need to pay very close focus on which online payment service they choose to take care of their micro payment transactions. Even a middle range micro payment processor will definitely cost several thousand dollars each year more in fees than using the inexpensive leader