How best to handle $1 product fees?

Paypal offer a microtransactions discount, which you'd be eligible for: https://www.paypal.com/uk/webapps/mpp/micropayments

Stripe will be significantly more expensive.

Paypal micropayments - £0.10 for each $1.00
Stripe - At least £0.22

It may be better to offer a yearly subscription (if it is indeed a subscription) as fees will take a significant part of your revenue.

I would definitely find a way to process bigger payments. The transaction costs will kill you. Maybe $10 for 10 credits that can then be used to buy the services

All payment processors will take a cut of the payments that they process, however some are more lenient on the fees (although this tends to be on higher rather than lower fees).

If you're service is a recursive billing then it may be worth using a yearly billing option (this way the amount taken by the vendor will be lower as they tend to do x% + $y).

For example if the vendor takes 2.5% + $0.20 then over a year monthly you would receive $9.30 whereas annually you would receive $11.50, The $2.20 may not seem like much but after 100 customers that $220 extra expenditure.

I would recommend reviewing the Fees for each vendor and seeing which one you are more comfortable with, Paypal's are found at https://www.paypal.com/us/webapps/mpp/paypal-fees and Stripes are found at https://stripe.com/us/pricing

For my Saas we have been using Stripe as we found the integration and documentation a lot better for our use case however without reviewing each option you may not know. They both have Test/Sandbox Accounts so you can try these without having to spend out and finding out which solution works better for you.

This comment was deleted 8 years ago