GeekGold Bonus for All Supporters at year's end: 1000!
9,312 Supporters
$15 min for supporter badge & GeekGold bonus
17 Days Left

Support:

Recommend
2 
 Thumb up
 Hide
13 Posts

BoardGameGeek» Forums » Everything Else » Chit Chat

Subject: Microtransactions on credit cards. rss

Your Tags: Add tags
Popular Tags: [View All]
David Jones
United States
Wilsonville
Oregon
flag msg tools
mbmbmbmbmb
My Google-fu skills are letting me down on a curiosity I have.

I have spoken with store owners about the various perks and problems related to accepting credit card transactions. One of the issues is that the credit card company (i.e. Visa, MC, Discover, etc) will charge the retailer a transaction fee. The retailer typically has to absorb this cost, although you do occasionally see retailers who add the fee on to customer's who use credit cards. I'm sure the amount changes for various reasons, but 35 cents is the number I often hear being charged by the credit company to the retailer.

I downloaded a free game (Polytopia) for my phone the other day and I enjoy it enough that I am willing to pay money to unlock some of the other features. There are five or six different civilizations I can pay for and, wanting to support the developer more than my credit card company, I was thinking I would just buy them all at once and save him/her some transaction fees. But, unless I'm not seeing it, I can't do this. I have to buy each civ one at a time. This seems to me to be horribly inefficient and I can only guess that the developer probably gets the same cut from the Google Play store per sale regardless of how I pay for it. However, I have similarly seen $1 games on Steam on sale for 80% off, making the final cost of the game less than the transaction fee that Steam is paying to my credit card company. Again, I have to assume that the developer gets their cut either way, but how does Steam make their money? Is it just a loss leader for them? Do they get some kind of bulk discount with the credit companies? Is selling a game at fifteen cent loss just too small for them to care about?
1 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Billy McBoatface
United States
Lexington
Massachusetts
flag msg tools
KGS is the #1 web site for playing go over the internet. Visit now!
badge
Yes, I really am that awesome.
Avatar
mbmbmbmbmb
Typical credit card fee is around 3% per transaction. It varies a little bit; online fees are higher than ones where the physical card is present, if you include the CVV code and/or the home address you may get a lower fee, etc.

But for all but the smallest transactions it is a percentage, so it doesn't matter much to the vendor whether you do one transaction or several.
2 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Andy Leighton
England
Peterborough
Unspecified
flag msg tools
Avatar
mbmbmbmbmb
wmshub wrote:
Typical credit card fee is around 3% per transaction. It varies a little bit; online fees are higher than ones where the physical card is present, if you include the CVV code and/or the home address you may get a lower fee, etc.

It also depends on the volume of traffic. I would imagine that someone like Google or Apple or Amazon would be way below that. More like half that.
3 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Matt
United States
Central Coast
California
flag msg tools
0110100110010110
badge
Avatar
mbmbmbmbmb
I would be surprised if platforms like Google, Amazon, iTunes, etc. (where there is the potential for many microtransactions over a short period of time) don't "bundle" several of your transactions into a single purchase.

I know that the Apple Store used to send me one receipt for several songs I purchased, sometimes over a two- or three-day period, and it was always a single charge on my statement. I always assumed they waited until I had either accumulated enough purchases to justify a CC charge, or enough time had elapsed that they wanted my money.
2 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
David Jones
United States
Wilsonville
Oregon
flag msg tools
mbmbmbmbmb
Verdigris97 wrote:
I would be surprised if platforms like Google, Amazon, iTunes, etc. (where there is the potential for many microtransactions over a short period of time) don't "bundle" several of your transactions into a single purchase.


I don't think Google does. A couple of years ago I bought some individual songs from the Play store and there wasn't an option to "basket" them into one purchase. I got a separate line item on my bill for each song. If they did bundle it into a single charge, they managed to line-item the songs on the bill.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Walt
United States
Orange County
California
flag msg tools
Before terraforming Mars, Surviving Mars is required: Paradox Interactive; Steam.
badge
Please contact me about board gaming in Orange County.
Avatar
mbmbmbmbmb
I'm pretty sure Google has deals with MC and Visa. I talked with Trader Joe's about Visa vs. Android Pay and they said it made no difference.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
David Jones
United States
Wilsonville
Oregon
flag msg tools
mbmbmbmbmb
b a n j o wrote:
I believe that if there are any transaction fees, they are paid for by Google, as they're the ones who have contracts with the credit card companies. In most cases, the merchant receives a static percentage on any sales.


I'm wondering if contracts vary then. I used to work at Sam's Club and, at the time, I know that we paid a fixed fee per transaction, not a percentage.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Billy McBoatface
United States
Lexington
Massachusetts
flag msg tools
KGS is the #1 web site for playing go over the internet. Visit now!
badge
Yes, I really am that awesome.
Avatar
mbmbmbmbmb
davypi wrote:
b a n j o wrote:
I believe that if there are any transaction fees, they are paid for by Google, as they're the ones who have contracts with the credit card companies. In most cases, the merchant receives a static percentage on any sales.


I'm wondering if contracts vary then. I used to work at Sam's Club and, at the time, I know that we paid a fixed fee per transaction, not a percentage.

Maybe it does. A while back I ran my own business that did credit card transactions over the internet. I checked several credit card gateways, they all had about the same story (the flat percent). As I remember, there was the credit card cut which was as I described, then the gateway charged a fee on top of that. I'm sure that Google etc. do their own gateway and cut out that fee, less sure that they also get better deals from Visa.
1 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Steve Vondra
United States
Charlottesville
Virginia
flag msg tools
badge
Avatar
mbmbmbmbmb
Somewhere around 3% Visa/MC and 5% Amex used to be fairly standard for a small business. We worked with a bank in Kansas City that extended a special 1.67% rate for all three majors plus Discover (noone ever gave us a Discover Card) for Independant Hallmark dealers. I'm not sure where the going rate is now, since I retired in '05.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
If I was truly the product of “Intelligent Design,” I’m pretty sure my fingers would be smaller or my nose would be bigger.
United States
Kansas City
Missouri
flag msg tools
badge
I think that all right-thinking people in this country are sick and tired of being told that ordinary, decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am.
Avatar
mbmbmbmbmb
cooler king wrote:
Somewhere around 3% Visa/MC and 5% Amex used to be fairly standard for a small business. We worked with a bank in Kansas City that extended a special 1.67% rate for all three majors plus Discover (noone ever gave us a Discover Card) for Independant Hallmark dealers. I'm not sure where the going rate is now, since I retired in '05.


You might have got that deal because Hallmark is headquartered here in KC, so it may have been a "sweetheart" deal.
1 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Steve Vondra
United States
Charlottesville
Virginia
flag msg tools
badge
Avatar
mbmbmbmbmb
claymore_57 wrote:
cooler king wrote:
Somewhere around 3% Visa/MC and 5% Amex used to be fairly standard for a small business. We worked with a bank in Kansas City that extended a special 1.67% rate for all three majors plus Discover (noone ever gave us a Discover Card) for Independant Hallmark dealers. I'm not sure where the going rate is now, since I retired in '05.


You might have got that deal because Hallmark is headquartered here in KC, so it may have been a "sweetheart" deal.
Oh quite the Hallmark link. Back in the seventies, when you would get your paper checks returned, our Hallmark check was deposited in that bank. I assume they worked out quite a few sweetheart deals with each other.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
J J
Australia
flag msg tools
davypi wrote:
b a n j o wrote:
I believe that if there are any transaction fees, they are paid for by Google, as they're the ones who have contracts with the credit card companies. In most cases, the merchant receives a static percentage on any sales.


I'm wondering if contracts vary then. I used to work at Sam's Club and, at the time, I know that we paid a fixed fee per transaction, not a percentage.


They do. The law firm I worked in paid a fee of 1.4% for credit card transactions, which we got taken down to 0.8% during some negotiation with the bank about costs and fees - and as a sort of sweetener to encourage us to encourage our clients to preferentially pay by card. Clever bank, two years later the trend (in general, nothing to do with the business) was indeed to pay for things on card more than with cash (and cheques are slowly dying out here, although not as rapidly as in the UK). More transactions, thus more fees overall with a lower rate per fee.
 
 Thumb up
 tip
 Hide
  • [+] Dice rolls
Front Page | Welcome | Contact | Privacy Policy | Terms of Service | Advertise | Support BGG | Feeds RSS
Geekdo, BoardGameGeek, the Geekdo logo, and the BoardGameGeek logo are trademarks of BoardGameGeek, LLC.