Internet Micro-Payments Are Not the Future of Paid Online Content

The number one trouble for online sellers and internet site owners accepting as well as refining micro payments is the extremely high fees charged by settlement processors as well as charge card companies, which can generally eat right into a considerable part of the repayment income stream.

Before we take a look at the various choices and solutions visit in handling this prevalent problem, we ought to first specify what makes up a mini payment.

A mini payment is a repayment for an item or service that is of reduced worth. As an example, internet site settlements for ring tones, pay televisions, downloads, electronic books, as well as subscriptions in the $1 – $3 array would certainly be considered as micro payments. A 25 cent settlement for a download or a 5 cent payment for a SMS are great examples of lesser value micro repayments.

There are 2 basic methods that an on the internet seller might employ to accept a micro repayment. The initial method is to make use of a bank card, but the vendor costs would certainly be rather high to accept a large number of repayments for $1 as well as $2 micro repayments, and also this is not usually a price efficient alternative.

Some on-line company owner whose web sites market mini repayment valued good and also solutions will ask consumers for their credit card information, as well as will process costs and billings to their customers’ cards when account balances reach specified repayment threshold quantities.

An additional variant of this technique is to charge the consumer’s credit card a minimum fee quantity of (say $10), as well as a credit report in this amount is then posted to the individual’s account, which depletes as nominal worth goods and also services are bought from the vendor.

The problem with this technique is that clients do not such as offering their credit card information to strangers, and they do not like the concept of making a down payment purchase dedication for items or services which the customer may ultimately determine not to purchase.