Post by Evolutionary Games in Payout

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This is what the summary says:

Sales 14.24

Payment Provider Fee * 2.92 (20.51%)

Itch.io cut 2.84 (20%)

Owed to you: $ 8.48 (59.55%)

*There is a discrepancy between your summary and the detail list - they show different values for the payment provider fee.

The detail list shows:

Sales 14.24

Payment Provider Fee* 2.76 (19.38%)

Itch.io cut 2.84 (20%)

Owed to you: $8.64 (60.67%)

Initially I wasn't requesting payouts because I thought on a higher amount that % cost of Payment provider fee would be less - but then you started deducting it per sale and so it didn't matter whether you requested a payment on a large or small amount - you'd be losing that % regardless.

PayPal isn't going to charge you $2.92 or even $2.76 to pay me $8.48 I therefore assume there is a fee built into that.

In fact they charge 4 - 6% depending on the value of the transaction. On a 10 euro payment I received from a client the PayPal fee was 0.74 Euro. This is ad-hoc single business transactions. Once you're doing bulk payments that fee is dramatically reduced.

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leafoAdmin5 years ago (1 edit)

The transaction fee always exists regardless of how the money is paid out to your account. We don't charge any money to transfer money to your PayPal account (aka a Payout). All online marketplaces have some sort of transaction fee, so saying we have a 30% payout fee compared to others isn't correct. We have a per transaction fee from the payment processor, but no payout fee.

Transactions fees from payment processors are comprised of a fixed amount (generally 30 cents) + percent amount (generally 2.9%). This means it's to your advantage to charge more for your product. If you sell a 1 dollar product then the 30 cent fixed fee is going to account for 30% (which is huge). If you charge 2 dollars, then the fixed fee is now 15% of it.

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Evolutionary Games5 years ago

Thank you for the explanation. I assumed that the fee was for paying me the money, but in fact it’s for receiving the money from the buyer. I’ve never dealt with that side of it as it’s always covered by the fixed commission that I pay at other stores.

So, as I understand it, if someone buys my game for $1.00 using PayPal then there’s a fee of 32cents from PayPal on that and you’re deducting that from my account and giving me 68cents. (PayPal has a new API where that fee would be 25cents). Thereafter You would deduct whatever commission I gave you and the rest is mine without any fees. For a $1.00 receipt I’d get 48 cents (using 20% commission.) And you would transfer the 48 cents to me without any additional fee.

I did see that Paypal has a fee for micropayments that are less than $10 which works out to 5% + 5c but I don’t know if these are available to businesses.

Queries:

The Payment provider fee in my summary is 16c more than the payment provider fee in the transactions. (They should agree.)

I had completed the tax interview and got to a final page that said this is now complete you can press a button or close your browser – I did this on the day I received the email introducing this procedure. In my account it is not showing that I completed it – it’s showing the option to do the tax interview. Does this mean I'll have to redo it? And can you then double-check that it is saving them once complete - with Firefox browser?

Thank you.

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Evolutionary Games5 years ago

I refilled the tax interview - it triggered this time.

I also checked the calculations and saw that actually neither of the 2 calculations are correct - the actual payout should be $8.58 - I could figure out that the $8.64 was rounding down the decimals instead of just rounding them and that accounts for the discrepancy there - but the other calculation I differ from 1c to 4c on each total. If that's an internal calculation then that's okay, you'll score the 10c, but if that is being given to you by the payment provider, well then they're doing something funny.

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leafoAdmin5 years ago (1 edit)

The payment provider fees can vary slightly. We avoid doing the calculation on our server, but instead have them tell us the exact amount they charged. Sometimes this value is pulled asynchronously though, so we show an estimated amount with the formula. This may cause your final payout to change by a small amount before it is finally paid. We never release funds with the estimated amount though, so the amount paid is the final amount.

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