That's not going to work given that it is still CC on the back end -- per-tx fees will eat you alive at the $1/tx level.

I'd guess it'd eat $0.50 of a $1.00 transaction, maybe a bit less if you're lucky. That's bad, but it's workable if you have low operating costs - it certainly isn't a loss. Most people seem to think $5.00 is when credit transactions start making more sense.

Amusingly, Amazon charges me $0.14 every single month for my usage of Amazon S3. I wonder if they've got some sort of sick deal where they don't pay per-tx.

>Amusingly, Amazon charges me $0.14 every single month for my usage of Amazon S3. I wonder if they've got some sort of sick deal where they don't pay per-tx.

Off-topic but I had this (except I have a non-US card, so the foreign transaction fee was larger than the S3 bill). I contacted Amazon and asked if I could prepay $50 and they added a small balance to my account for free that'll cover my tiny S3 usage for the next few years

Aren't foreign exchange fees calculated by %?

My bank charges a flat fee of £0.75 per transaction for foreign currency transactions - not a big deal for a normal transaction but pretty significant if you're paying a $0.03 bill every month!

Some credit card companies charge $3 or $5 for transactions made in other currencies, with exchange rate being separate.

Are those fees > $1? Depending on the rest of your model - huge volume of transactions for a free-to-reproduce product? - even a massive cut might still be workable.