I am working on an online dollar store where users can register and sell their stuff. I will need to send diburse money to sellers worldwide at some defined point in time, and will also receive money from buys worldwide for purchases.
Does anyne know of the most cost effective payment processor out there that for
1. such small purchases [and not have to pay too much charges /fee.
2. that I can use to effectively disburse the funds without paying too much charges.
With low dollar value most credit card processors would basically eat up almost everything you have for the sale. You might want to research on Micropayment on the web. There were some around but not sure about now.
As to disbursement of funds, you could always send them a check. That should save you on processing fees or whatever issues which may arise. Just allow your customers to set a minimum income level before you mail off the checks.
With items as small as .99... there won't ever be a cost effective way to do it on a per-transation amount - via credit card at least.
That is a result of the fact that the VISA/MC Interchange per transaction cost plus even the best per trans network transport fees would eat into upwards of 25-30%+ of that - under a best case scenario.
The only way to really do it would be to set it up where people could pre-deposit or pre-buy a certain amount and then deduct the small amounts from that.
Almost akin to the way a lot of domain registrars work. You deposit $50.00 to ENOM or whomever and then it deducts each domain from your balance.
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