Re:Facebook Launches Simple Mobile Payments
by KaoruAoiShiho on Wednesday June 06, 2012 @09:50PM
(#4077181)
Generally it's to avoid credit card charges that cuts into the margins of micro-transactions.
Re:Facebook Launches Simple Mobile Payments
by pbreit on Wednesday June 06, 2012 @11:02PM
(#4077401)
Whether the stored value is called "dollars" or "credits" would have no bearing on credit card charges.
Re:Facebook Launches Simple Mobile Payments
by jonknee on Wednesday June 06, 2012 @11:20PM
(#4077439)
It does when there are per transaction fees. 1x $10 has a lot less fees than 10x $1.
Re:Facebook Launches Simple Mobile Payments
by abraham on Wednesday June 06, 2012 @11:34PM
(#4077472)
I believe they are saying keep the transactions the same (so 1x $10) but label the stored value as dollars instead of credits.
IIRC, most credit card fees are percentages, so the number of transactions wouldn't matter. I've never dealt directly with it, so I'm not 100% certain though.
Re:Facebook Launches Simple Mobile Payments
by nextstep on Thursday June 07, 2012 @12:32AM
(#4077624)
Credit card fees are a base amount (which varies based in the auth method) plus a percentage of the sale. So for smaller transactions, the effective percentage is higher. Have you ever been to a store with a minimum purchase amount for credit cards? This is why.
Re:Facebook Launches Simple Mobile Payments
by pwaring on Thursday June 07, 2012 @04:04AM
(#4078032)
Card fees depend on how big you are though. Large UK supermarkets have no minimum purchase amount for credit cards, because they have the clout to negotiate a better deal. Facebook is probably big enough to do the same.
Re:Facebook Launches Simple Mobile Payments
by harbud on Wednesday June 06, 2012 @09:49PM
(#4077177)
Probably because FB is not a bank, and there are strict regulations in most countries for companies that store people's money like banks. Paypal is not a bank either, but I'd guess storing credits is still easier regulation-wise.
Re:Facebook Launches Simple Mobile Payments
by compsciphd on Wednesday June 06, 2012 @09:58PM
(#4077215)
Re:Facebook Launches Simple Mobile Payments
by JonnieCache on Thursday June 07, 2012 @05:08AM
(#4078149)
>Can someone explain to me why FB chose to use credits over just actual money balances?
Think of it like the anti-bitcoin.
Re:Facebook Launches Simple Mobile Payments
by taligent on Thursday June 07, 2012 @12:28AM
(#4077612)
Kids.
They don't have credit cards but are now able to make in app purchases.
Re:Facebook Launches Simple Mobile Payments
by flyinRyan on Thursday June 07, 2012 @07:42AM
(#4078469)
I thought kids weren't allowed on facebook?
Soon that won't be the case: http://online.wsj.com/article_email/SB1000142405270230350640....
It just seems like an extra unnecessary convoluted layer to me. Having a credit balance over real money balance is unnerving for me and would mean I would never put too much money on at any one time, there's too much risk of something bad happening like quick devaluation. Also it would probably be far less liquid and harder to convert back to cash.