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 quite high fees charged by payment processors and credit card companies, which can 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 should first define what constitutes a micro payment. A micro payment is really a payment for something or service that's of low value. As an example, 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 even a 5 cent payment for a SMS are excellent types of lesser value micro payments. You will find two basic methods that the online seller might employ to simply accept a micro payment. The first method is to use a bank card, however the merchant fees would be quite high to simply accept a sizable number of payments for $1 and $2 micro payments, and this is not usually a cheap option. Some online business owners whose websites sell micro payment valued good and services will ask customers because of their charge card details, and will process fees and invoices with their customers'cards when account balances reach specified payment threshold amounts. Another variation of this approach is always to charge the customer's bank card a minimum charge number 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 situation with this process is that customers don't like providing their bank card details to strangers, and they don't really like the thought of making a deposit purchase commitment for goods or services which the consumer might ultimately decide not to purchase. The other option would be to process payment for every single micro transaction because it occurs using an online payment system, and there are always a few viable options with several companies competing in this space, some that are a whole lot more inexpensive than others, as I'll explain. Let's consider 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 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 highest fees would be incurred if using 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. By far 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 expense of the next lowest provide on the list. Many online sellers and website owners accept micro payment since the life-blood of their business operations. This means, many such payments are processed over the length of monthly, throughout the year. Therefore, to see the true important thing effectation of the fee differences presented above, we need to factor the info up to and including one year analysis. Let's assume a typical online seller must process 1,000 of the $2 payments each month, which translates into 12,000 such payments annually (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 as follows, again listed from highest cost to cheapest: 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 absolute most well known company in the online payment space is PayPal, that will be owned by eBay. PayPal's regular online payment 소액결제 현금화 service is obviously $4,000 annually more expensive compared to the good deal leader. PayPal's lite micropay service is $1,680 more costly compared to the good deal leader, and even Amazon, which will be the 2nd place low priced leader is four times more costly than the low price leader.
To conclude, online sellers and website owners need to cover very close attention to which online payment service they choose to handle their micro payment transactions. Even a heart range micro payment processor will definitely cost several thousand dollars each year more in fees than utilising the low priced leader