Originally Posted by Rich Z
...they go to PayPal and pay their $1 to enable it. PayPal extracts 33 cents from that dollar...
I was first surprised to see that high percentages. But you are correct. The problem with paypal is the fixed USD amount they get from each transaction. The lower the user has to pay, the more the site owner is loosing money.
Paypal takes for EACH transaction:
2.9% + $0.30 USD
(Monthly Received Payment (USD): $0.00 USD-$3,000.00 USD)
So this $0.30 USD kills you with these kind of micropayments. For intl. Paypal users, it is even higher. I have not thought about this at the beginning, since we charged in the past yearly fees. So these $0.30 USD are not that high for us at the moment.
But obviously every site owner would love to charge micropayments of $0.50 USD- $2 USD. In that case, $0.30 USD fixed fee plus te 2.9% is a pain in the neck.
So I would support this idea of a "fund-features" in calssified (and of course in Photopost and Reviewpost too), but clasifieds might be the most important part of all 3...