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Imagine you have a user who supports five different creators, each with a $10 donation, and the money they are charged comes out on the same day every month. F
by ZenoArrow 9y ago
Imagine you have a user who supports five different creators, each with a $10 donation, and the money they are charged comes out on the same day every month.
From the end user perspective, as a result of this latest change they will be charged five transaction fees. However, from Patreon's perspective, that's not an efficient way to process the payments. What Patreon can do is bundle up the five $10 payments into a single $50 payment. What this means is Patreon will only pay for one transaction fee, but they'll charge this user for five transaction fees. The four extra transaction fees that Patreon have charged for are then used to boost Patreon's profits.
- tehwebguy 9y agoAre they doing that? It sounds like they explicitly are NOT doing that.
- quadrangle 9y agoThey are proposing multiple charges each month, super wasteful. It's because they are first and foremost a paywall service.
- chipotle_coyote 9y agoActually, from Patreon's update, it sounds like Patreon will, in fact, run five different transactions: https://blog.patreon.com/updating-patreons-fee-structure/ https://blog.patreon.com/updating-patreons-fee-structure/ Which is frankly insane, but does explain the change.
- falcolas 9y agoYikes. That is an insane way to do things. Silly inefficient to boot. The only real winner in this will be Stripe and its ilk. Thanks for finding and posting that.
- quadrangle 9y agoIt is insane, but they are doing it because they thought it made sense with their business model, namely Patreon is not a donation platform, it's a paywall service. https://wiki.snowdrift.coop/market-research/other-crowdfunding#fn5 https://wiki.snowdrift.coop/market-research/other-crowdfundi...