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The normal structure for credit card processing is a few cents flat payment plus a percentage of the transaction[1]. Something like 5 cents + 1.5% would be a g
by kemayo 6y ago
The normal structure for credit card processing is a few cents flat payment plus a percentage of the transaction[1].
Something like 5 cents + 1.5% would be a great deal on payment processing, generally. (Apple is a juggernaut and may have been able to negotiate something else, of course.)
That does mean that for a $0.99 app, keeping the fees would still be more than that 3%, at ~$0.07... but not wildly divergent from the 30% amount.
Where the 30% gets really abusive is for things like Codea, the app being talked about in the Twitter thread. It costs $14.99. So it had presumptive fees of ~$0.28, while Apple's keeping $4.50. That's outrageous.
(Also, I see mixed reports on whether credit card refunds refund the processing fees. It might be contract-dependent.)
[1]: https://www.fool.com/the-ascent/research/average-credit-card-processing-fees-costs-america/ https://www.fool.com/the-ascent/research/average-credit-card...
- deleted 6y ago[deleted]
- hboon 6y agoApple doesn’t charge the user immediately. Instead it consolidates over a few days. So, often, the card processing fees are lower for Apple.