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Generally it's to avoid credit card charges that cuts into the margins of micro-transactions.
by KaoruAoiShiho 14y ago
Generally it's to avoid credit card charges that cuts into the margins of micro-transactions.
- pbreit 14y agoWhether the stored value is called "dollars" or "credits" would have no bearing on credit card charges.
- jonknee 14y agoIt does when there are per transaction fees. 1x $10 has a lot less fees than 10x $1.
- abraham 14y agoI believe they are saying keep the transactions the same (so 1x $10) but label the stored value as dollars instead of credits.
- pyre 14y agoIIRC, most credit card fees are percentages, so the number of transactions wouldn't matter. I've never dealt directly with it, so I'm not 100% certain though.
- nextstep 14y agoCredit card fees are a base amount (which varies based in the auth method) plus a percentage of the sale. So for smaller transactions, the effective percentage is higher. Have you ever been to a store with a minimum purchase amount for credit cards? This is why.
- pwaring 14y agoCard fees depend on how big you are though. Large UK supermarkets have no minimum purchase amount for credit cards, because they have the clout to negotiate a better deal. Facebook is probably big enough to do the same.