A note on transaction fees for payment by credit card

Payment by credit card or PayPal is quick and easy – with the instant online confirmation of your credit card company or PayPal our system can activate your download immediately after payment. But this benefit literally comes at a price, especially when the turnover rate – as is the case for the Organ Site – is low:

Apart from a basic fee of 42.00 EUR per month credit card companies charge a gross of 0.42 EUR per transaction (this applies even for faulty transactions or ones that were not completed!) plus 4 percent of the turnover plus VAT. And mind you, turnover does not equal profit, since the Organ Site itself has to buy the tracks and CDs from the publishers. Now if you take what is left from the Organ Site's turnover you have a distribution of the costs by percentage of:

Without the customers´ taking over some of the fees the costs would amount to nearly 94 percent of the turnover – and then this all would no longer make sense. As I did not want to pass on this complicated calculation to the customers and as the problem is basically one of low turnovers I opted to charge a flat fee of 1 EUR per transaction. This fee will be charged on each payment procedure, no matter how many tracks / CDs you buy.

Since several people asked I have now included the payment options bank transfer and cash by mail. I will still have to charge a handling fee of 1 EUR for these options, too, since there is only little room for automation in this way of payment. I'll have to manually check all incoming payments, then look up the preliminary invoice and make the MP3s ordered available in the secure customer section. Obviously this is not feasible with the proceeds (not the turnover!) from an average fully automated ordering process.

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