[lug] Credit - was: [Letting folks pay from the web.]

[Jonathan Corbet]

On Wed, 03 Feb 2010 13:17:50 -0700
Nate Duehr <nate at natetech.com> wrote:

> So, mathematically, 5% of $5 has the same effect to your bottom line as 
> 5% of $100.
> 
> What am I missing in the math?

I can't speak to the original poster's position, but I suspect you're
missing the fixed charges.  The discount is only part of what you pay;
there's also the authorization charge, the capture charge, and,
perhaps, others imposed by the net gateway.  They are fixed amounts
(LWN pays $0.25 for an authorization, for example).  So the percentage
gets higher as the charge amount gets smaller.

jon