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Patreon originally aggregated all payments into a monthly lump transaction to Patreon. The new fee structure is consistent with them desegregating the payments
by ufo 9y ago
Patreon originally aggregated all payments into a monthly lump transaction to Patreon. The new fee structure is consistent with them desegregating the payments but it is not clear why they would do that.
One theory going around is that having individual payments reduces their chargeback rate because the number in the credit card bill matches the individual contributions instead of the lump sum. Another theory going around is that separate payments would allow payments to be immediately sent to the creator instead of waiting until the end of the month. But Patreon hasn't been clear if one of these is the reason or if it was something else.
- da_chicken 9y ago> The new fee structure is consistent with them desegregating the payments but it is not clear why they would do that. From what I've read, the credit card companies are complaining about partial refunds, which apparently occur much more often with Patreon. If I've got 10 creators I'm supporting for $1 each, and I decide I need a refund for one of them, well, Patreon only ran one $10 transaction. Now it's kind of a pain in the ass for the credit card company because I'm telling my credit card company it should be 10 transactions @ $1 and I want to refund $1, but what they see is one $10 transaction.