Quote:
Originally Posted by Ross
£10 is almost $16. Meaning a customer is paying $64 for 4 weeks access (almost a month) and the paysites cut is only $24.
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It does sound a bit worse than it actually is.
The £10 is including VAT which is 17,5%, the actual charge would be roughly £8,55, then there is domestic taxes added and paid on behalf of people as required by law. I know that many people "forget" this when billing by credit card, just because you can get away with it doesn't mean it will never cause you problems.
Furthermore the customer accept the charge today, but is not charged on his phone bill until the end of his billing cycle, typical people receive their phone bills monthly giving them 2-4 weeks to pay, sometimes bills are send out quarterly as well. We pay out the first monday after the user ACCEPT the charge, regardless if he pay or not.
The payment is guaranteed and often made by us to our clients before they are even booked on the phone bills. We never reduce any kind of fees, charge backs or refunds from clients.
It's no secret the costs of billing is high on SMS compared to Credit Card but sometimes getting ~45% guaranteed ($6 out of $13) works better than 85% of $0 because your customer don't have a cerdit card!
Put it up for your non credit card countries such as Russia, Bulgaria, Ukraine, Czech etc etc and you WILL see a difference
