5 ms·

how economical is it to be making $5 credit charges for several thousand users ever month? I would think that visa/mc would eat your revenue for lunch there. Is

• vaksel 18y ago
  Its not that bad. On a $5 charge, you'll lose like 50 cents in credit card fees. Sure when you multiply it by the 2-3000 users, you end up losing a few thousand bucks...but hey cost of doing business.
• aston 18y ago
  The typical cut taken from a $5 transaction would probably look like about 30 cents flat fee plus 3% = 15 cents with another maybe 5 cents per transaction (on average) from the flat fees you pay to all of the people helping you process cards if you have particularly low volume. That's 10% lost to processing, which clearly sucks, but you're still taking home $4.50...