Hot answers tagged micro-payment
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It's not a question of whether or not your customer will like micropayments. The real question is, can your business afford to use micropayments?
Every transaction has an overhead cost associated with it. In general the lower the item cost, the higher the percentage lost to overhead.
For example, if you sell software for $100 and have your own merchant ...
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A survey of ecommerce providers for software vendors by Andy Brice
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Look at points systems (e.g. istockphoto.com) where you purchase a number of points then spend them.
Whether these are appropriate depends a lot upon what you are selling and whether your customers expect to be making multiple purchases. They have the advantage that (a) you get money up front, and (b) the micropayment transactions can occur entirely within ...
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If you have repeat purchasers, consider a "points purchase" solution - used by companies such as iStockPhoto.com, Nintendo Wii (console purchases) etc.
The user buys (say) $10 worth of points which can then be spent on anything over the next year. (Accountants will want an expiry date on unused points because otherwise they will show up as an indefinite ...
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It won't be easy to set up the merchant account for this type of businesses. They're called Third Party Payments Aggregation accounts. They're high risk accounts, because you're basically facilitating the exchange of money between two parties.
You're charging money for services/products you do not own. There's a lot of risk involved with this. How are you ...
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