Micro Payments For Your Website Or Online Business - Easy Way of Cash The top problem for online sellers and website owners accepting and processing micro payments could be the very good fees charged by payment processors and credit card companies, which can typically eat in to a significant portion of the payment revenue stream. Before we examine the many options and solutions in dealing with this pervasive problem, we should first define what constitutes a micro payment. A micro payment is really 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 will be considered as micro payments. A 25 cent payment for a download or a 5 cent payment for a SMS are excellent types of lesser value micro payments. You can find two basic methods that the online seller might employ to simply accept a micro payment. The first method is to use a charge card, but the merchant fees will be quite high to simply accept a big quantity of payments for $1 and $2 micro payments, and this isn't usually a cheap option. Some online business owners whose websites sell micro payment valued good and services will ask customers for their 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 process is to charge the customer's bank card a minimum charge 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 problem with this method is that customers don't like providing their credit card details to strangers, and they do not like the idea of making an advance payment purchase commitment for goods or services which the customer might ultimately decide to not purchase. The other option is always to process payment for each micro transaction since it occurs using an online payment system, and there are certainly a few viable options with several companies competing in this space, some that are a great deal more inexpensive than others, as I'll explain. Let's look at the following example: Consider a micro payment in the amount of $2 USD sent internationally (from one country to another) utilizing a business account. I've compared the fees that all the following online payment processors would charge to handle this payment, and present the outcome 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 greatest fees will be incurred if utilizing the services of Netherlands-based ZayPay and UKbased Moneybookers. PayPal's regular payment service would result in a 18% payment commission, and even their lite service for mirco payments results in an 8.5% commission. Undoubtedly the best cost micro payment processor is Canadian based CashSender, as their 1.5% commission does not have a fixed fee component. Thus, CashSender's fee is even a fraction of the cost of the next lowest provide on the list. Many online sellers and website owners accept micro payment whilst the life-blood of these business operations. This means, many such payments are processed over the course of monthly, through the year. Therefore, to see the actual main point here effect of the fee differences presented above, we need to factor the information up to a one year analysis. Let us assume a typical online seller needs to process 1,000 of the $2 payments every month, which means 12,000 such payments every 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 data is presented the following, again listed from highest cost to most reasonably priced: 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 Probably the most well known company in the web payment space 소액결제 현금화 is PayPal, which will be owned by eBay. PayPal's regular online payment service is actually $4,000 per year more pricey compared to low price leader. PayPal's lite micropay service is $1,680 more pricey than the low cost leader, and even Amazon, that will be the next place inexpensive leader is four times more expensive than the good deal leader. To conclude, online sellers and website owners need to cover very close focus on which online
payment service they choose to deal with their micro payment transactions. Even a center range micro payment processor will cost several thousand dollars annually more in fees than utilizing the low cost leader