PayPal micropayments offer new options for artists
Posted by GreenReaper (Laurence Parry) on Tue 26 Oct 2010 - 17:08 — Edited as of Wed 29 Feb 2012 - 00:45
Artists looking to cut transaction costs might consider PayPal's new micropayments.
Fees are 5% + $0.05, compared to 2.9% + $0.30 for a normal Premier/Business account.
| Cost | Micro | Normal |
|---|---|---|
| $2 | 15¢ | 36¢ |
| $5 | 30¢ | 45¢ |
| $10 | 55¢ | 59¢ |
| $15 | 80¢ | 74¢ |
The difference on ten $5 transactions would be $1.50 – enough for a McDouble with tax.
The break-even point is $12, which costs 65¢ in both systems. Those wishing for the best of both worlds should create a new micropayments account, and direct larger and cross-border transactions to their existing account.
The new system is reportedly being adopted by Facebook, Justin.tv and Ustream.
About the author
GreenReaper (Laurence Parry) — read stories — contact (login required)a developer, editor and Kai Norn from London, United Kingdom, interested in wikis and computers
Small fuzzy creature who likes cheese & carrots. Founder of WikiFur, lead admin of Inkbunny, and Editor-in-Chief of Flayrah.
Comments
Don't forget that Paypal does not allow transactions for Adult Material. That includes art commissions. If you get caught, they can freeze your account and your money. Alertpay.com is one alternative that allows transactions for Adult Material.
Or you can use personal payment through paypal and pay no fees. /article
That tends not to work so well for customers who want a refund.
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