Is there a payment processor for very small transactions?
Hey chris this is kelly from chicago. I've been listening to the show for a couple of years. Now and still love the funds. I want to sell virtual items for gamers including some that costs less than a dollar. My concern is that most merchant accounts including pay pal and stripe charge a per transaction fee in addition to a percentage. I understand them taking a three to four percent cuts. But if you're selling an item for fifty cents and there's a twenty five cent transaction fee. That's half the cost of the item. Is there a payment processor can work with to solve this problem. Or perhaps some way to use crypto currency and have no charges at all says it strictly peer to peer. What do you think kelly. Thank you so much for the question. So i i was a little bit stumped. I'm going to give you some perspective as well as a direct answer so the good news is a papal does have a microtransactions option now. I don't know that. I was even aware of that before i did some research. Take a look again. They call it micro payments so just searched for pal micro payments and the way it works as you'll pay a higher percentage but a lower flat fee essentially so you won't be paying the twenty five cents on each transaction and i think you'll pay something like five to seven cents and then the percentage maybe five to seven percent as opposed to two to four percent. Okay so it's just a different business model. That can actually work pretty well. For microtransactions or micro payments now. That said telly. Also mentioned crypto currency. I do think blockchain of some kind and future on this is one of the problems that blockchain promises to solve because transaction costs are so high. Most banks don't wanna do microtransactions because they're not making any money off them and because there are so many middlemen at these systems but still this is getting a little bit complicated because you know these days at least it's still pretty hard to use cryptocurrency for most routine transactions so as for the virtual items themselves. We talked about this in another episode as well. Most of that stuff is centralized by companies like epic games the makers of fortnight's and other games and the aftermarket is minimal or nonexistent if they don't actually want people making virtual items for sale they want to control that process themselves. Now there's probably some opportunity that i don't know about so in case i just said something that's inaccurate or is inaccurate and the future. Here's the greater point. You know what i hope to teach through. This show isn't so much like here's the latest. And greatest thing. Here's how you can go and sell virtual items and here's how you can get your percentage fee to be lower. Michael here is to make episodes and tell stories that are evergreen and helpful for a long time So much greater skill you can acquire all this stuff here is where do opportunities come from. Like where do. I find the opportunities in the first place because they will change from time to time month-to-month season by season year by and such. But where did the opportunities come from. How can i learn to spot them. And how can i take action. Once i spot one. So i think if you listen to this show for a while like you'll see that narrative that i'm trying to build up sometimes more successful than others. I'm sure but i'm trying to communicate that the greater skill is learning to spot the opportunity taking action on the opportunity. Not just like here. Are the top three things you can do at this particular month. So just some general comments there. Make sure you're not missing the forest for the trees. It really is hard to make money to make a good profit when you're items for so low of a cost so you should always ask like. Is this the best opportunity for me. My thirty something else. I should consider as well all right. Just my two cents there. My two cents with no transaction fee.