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

[Davide Del Vento]

>>> 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.

I am sorry to re-open this OT thread, but I think it's something cool
that might interest people. It probably won't help for internet
payments, but hopefully it will for in-person ones:
http://mobile.venturebeat.com/2010/04/19/will-facecash-the-mobile-payment-application-kill-the-credit-card/

Bye,
;Dav