From what I understand, in order to charge customers’ credit or debit cards, you need to use a payment processor like Paypal or Stripe. It seems like the fee for using this service is around (4% + $0.50) per transaction.

To get around this, you could make users link a bank account for ACH transfer or use crypto to circumvent this fee.

Specifically for my situation, I’m offering a B2C SaaS subscription service with plans around $5 or $10. The fees are pretty steep for these smaller monthly transactions, am I just forced to pay these fees if I want to take online payments?

For a broader audience: in your startup, how do you accept payments, who is the processor, and what fees are you paying?

  • summerinside@alien.topBEnglish
    1·
    10 months ago

    So when you’re using PayPal or Stripe to take credit cards, there’s the amount that Visa (or the CC provider) is taking, and then there’s the additional amount that PayPal or Stripe is taking on top of that.

    For pricing a subscription that small, to limit (expensive) monthly transactions, I’ve seen a lot of companies do some variation of “buy 6 or 12 months and save” pricing strategy. - Something like $15/mo, but only $120 for the year.