Tim Cook’s Fortnite trial testimony was unexpectedly revealing

Re:Tim Cook’s Fortnite trial testimony was unexpectedly reve... by thekyle on Sunday May 23, 2021 @01:36PM (#27256858)

I think most credit card processors charge something like 30 cents + 2.9%. On large purchases that's about 3%, but on smaller transactions (like those usually used in mobile apps) that 30 cents dominates and could end up being about 30%. So from that perspective Apple's 30% cut could be a good deal in some cases.

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Re:Tim Cook’s Fortnite trial testimony was unexpectedly reve... by GeneralTspoon on Sunday May 23, 2021 @02:40PM (#27257406)

It's not a "good deal" in any case....

The minimum purchase price on iOS is $0.99, so at worst you'd be paying basically the same rate (~30%).

But most payment processors offer separate pricing for micro-transactions (e.g. Paypal is 5% + $0.05 IIRC). Which works out at around 10% for a $0.99 transaction.

And actually - Adyen offer much better pricing than the "Stripe rate" of $0.30 + 2.9% in the first place.

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Re:Tim Cook’s Fortnite trial testimony was unexpectedly reve... by anonymouse008 on Sunday May 23, 2021 @03:50PM (#27257963)

A few years ago when making a micro transaction app, PayPal only allowed one type of fee structure — either the 5% or the 2.9%.

Meaning you couldn’t segregate low tickets from high tickets and get the most optimal fee - your whole merchant account was one fee or the other.

‘Twas quite a PITA

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Re:Tim Cook’s Fortnite trial testimony was unexpectedly reve... by GeneralTspoon on Sunday May 23, 2021 @04:45PM (#27258441)

Yeah this is still the case AFAIK - very annoying. I believe their recommended workaround was to have 2 separate merchant accounts with different fee structures and group your products accordingly.

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