There's a reason why every other payment processor I can name and probably hundreds I can't name charge a percentage - it strikes a balance between fairness for large and small payments. Almost no company I can think of would blink at a 0.25% fee - a sign your fees are too low. Meanwhile, nobody would want to pay 80% of a $1 purchase in fees. I really encourage you to rethink your fee model. Visa, Stripe, Mastercard, etc. all use a percentage. There's a reason why almost every payment fee in the last 50 years has used a percentage - because it works.
Personally, I just discovered Gumroad and I'll probably be using that instead. With them I pay 10% of a $5 transaction in fees. With Snappy I pay 20%. It's a no-brainer.
Finally, I don't think a flat fee plus a percent is too hard to understand. Stripe and Gumroad use it, and probably many more but I can't think of them.
[edit] I just found out I can't use recurring subscriptions with PayPal. I'm going with Gumroad. That said, you have a really nice looking product and I'd love to use it, but 20% in fees is ridiculous.
Every other payment processor charges a percentage -- agreed. So, it seems people have no choice right now. They are going to pay a percentage no matter where they go.
I'm open to pricing suggestions. I was just trying to do what I thought was reasonable.
If you (or anyone else) want to work out some kind of X% for less expensive transactions, then send me an email and we can work something out. I'm willing to discuss matching whatever Gumroad or anyone offering similar checkout products is charging.
Comments
There's a reason why every other payment processor I can name and probably hundreds I can't name charge a percentage - it strikes a balance between fairness for large and small payments. Almost no company I can think of would blink at a 0.25% fee - a sign your fees are too low. Meanwhile, nobody would want to pay 80% of a $1 purchase in fees. I really encourage you to rethink your fee model. Visa, Stripe, Mastercard, etc. all use a percentage. There's a reason why almost every payment fee in the last 50 years has used a percentage - because it works.
Personally, I just discovered Gumroad and I'll probably be using that instead. With them I pay 10% of a $5 transaction in fees. With Snappy I pay 20%. It's a no-brainer.
Finally, I don't think a flat fee plus a percent is too hard to understand. Stripe and Gumroad use it, and probably many more but I can't think of them.
[edit] I just found out I can't use recurring subscriptions with PayPal. I'm going with Gumroad. That said, you have a really nice looking product and I'd love to use it, but 20% in fees is ridiculous.
Every other payment processor charges a percentage -- agreed. So, it seems people have no choice right now. They are going to pay a percentage no matter where they go.
I'm open to pricing suggestions. I was just trying to do what I thought was reasonable.
If you (or anyone else) want to work out some kind of X% for less expensive transactions, then send me an email and we can work something out. I'm willing to discuss matching whatever Gumroad or anyone offering similar checkout products is charging.