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How to businesses do micro transactions?


#1

Lets use itunes as an example. They sell individual mp3s for .99 cents or sometimes even .49 cents. When using a payment processor such as braintree or stripe that charge a .30 cent fee on each transaction. This obviously wouldn’t be viable to take that out of each transaction. I’m assuming they batch process either once a week or once a month. Am i correct in thinking this? How would i do it using a payment processor such as the ones listed above? Would i somehow validate that the card has money on it and then just save the card info to batch later? Would this show up as only 1 transaction to the processors? Any info would be greatly appreciated. Thanks!


#2

Paypal does have a different transaction setup for micropayments. Which is a rate of 5% + $0.05 for purchases that are $10 or less. See more details here: https://www.paypal.com/us/webapps/mpp/merchant-fees

I’m not sure how it works with Braintree though, but I would hope that you could still use micropayments.

Another option would be to somehow allow your customers to load funds in larger amounts (i.e. $20+) onto their account, and then just deduct from their account when they make purchases. Not really sure what would be involved with building something like that though.


#3

Oh i didnt think about that second option. I think i could build that out. thanks!


#4

I’m sure you solved this as this thread was created three years ago, but for future users you could also tally up their balance in the backend and set up a conditional after each purchase that "when users fees are equal to or greater than “X”, run charge workflow.

“X” being whatever number you are comfortable with being charged at ($10, $20, $100)