Hmm. I really like this, and I'm definitely going to use it when I finish my service. However, I have two small problems and one large problem with it:
- It's impossible to go back and select another payment option once you click one of them.
- You can't style your payment dialog. (This may be a good thing [consistency], but I think it'd be nice to be able to add custom CSS to the pricing dialog.)
My large problem is that the price is crazy; your 50 cent per transaction fee means that for all transactions under $7 you collect more in fees than Stripe does. With a $5 payment - very common for services such as the one I'll release soon - I'm paying 20% to you. With a $1 payment, I pay a prohibitive 83% in fees. That's a really large cut compared to using the Stripe API directly, and I think that for anyone looking to increase their profits it's a no-brainer to cut Snappy Checkout out of the equation.
To give a personal example, my service will be primarily receiving $5 payments. For the first 1000 payments or so, I'll probably stick with Snappy - the $500 I give up isn't worth the time I would've spent rolling my own solution. However, as soon as I can see that there's a clear market for my product, I'll roll my own with Stripe - I clearly wouldn't want to give up 20% to payment processing alone.
Meanwhile, Frank is selling antique vases on Facebook for $1.5k each, and he pays 50 cents a transaction to you.
However, if you were to switch to a flat fee + a percentage (say 1.5% and 15 cents), as Stripe does, you would probably retain my business for a lot longer. Suddenly, I pay a 4.5% cut to you as opposed to a 10% cut, which is quite reasonable. At the same time, Frank the antique vase seller doesn't really care about a 1.5% fee: a win-win situation.
tl;dr I recommend that you change to a percentage of the total sales: sellers of cheap items will use your service and sellers of expensive items won't care. There's a reason why Stripe, Visa, and every other payment processor everywhere ever does this.
It seems someone loses either way. Charge a flat fee and small transactions are more expensive. Charge a percentage and large transactions are more expensive. I suppose you could do some combination of both, but that would make the pricing more complicated to understand.
I don't know about everyone else, but I would care if I was being charged X% to sell a $200 item -- even more so if there were options to pay a flat fee.
There's a reason why every other payment processor I can name and probably hundreds I can't name charge a percentage - it strikes a balance between fairness for large and small payments. Almost no company I can think of would blink at a 0.25% fee - a sign your fees are too low. Meanwhile, nobody would want to pay 80% of a $1 purchase in fees. I really encourage you to rethink your fee model. Visa, Stripe, Mastercard, etc. all use a percentage. There's a reason why almost every payment fee in the last 50 years has used a percentage - because it works.
Personally, I just discovered Gumroad and I'll probably be using that instead. With them I pay 10% of a $5 transaction in fees. With Snappy I pay 20%. It's a no-brainer.
Finally, I don't think a flat fee plus a percent is too hard to understand. Stripe and Gumroad use it, and probably many more but I can't think of them.
[edit] I just found out I can't use recurring subscriptions with PayPal. I'm going with Gumroad. That said, you have a really nice looking product and I'd love to use it, but 20% in fees is ridiculous.
Every other payment processor charges a percentage -- agreed. So, it seems people have no choice right now. They are going to pay a percentage no matter where they go.
I'm open to pricing suggestions. I was just trying to do what I thought was reasonable.
If you (or anyone else) want to work out some kind of X% for less expensive transactions, then send me an email and we can work something out. I'm willing to discuss matching whatever Gumroad or anyone offering similar checkout products is charging.
- It's impossible to go back and select another payment option once you click one of them.
- You can't style your payment dialog. (This may be a good thing [consistency], but I think it'd be nice to be able to add custom CSS to the pricing dialog.)
My large problem is that the price is crazy; your 50 cent per transaction fee means that for all transactions under $7 you collect more in fees than Stripe does. With a $5 payment - very common for services such as the one I'll release soon - I'm paying 20% to you. With a $1 payment, I pay a prohibitive 83% in fees. That's a really large cut compared to using the Stripe API directly, and I think that for anyone looking to increase their profits it's a no-brainer to cut Snappy Checkout out of the equation.
To give a personal example, my service will be primarily receiving $5 payments. For the first 1000 payments or so, I'll probably stick with Snappy - the $500 I give up isn't worth the time I would've spent rolling my own solution. However, as soon as I can see that there's a clear market for my product, I'll roll my own with Stripe - I clearly wouldn't want to give up 20% to payment processing alone.
Meanwhile, Frank is selling antique vases on Facebook for $1.5k each, and he pays 50 cents a transaction to you.
However, if you were to switch to a flat fee + a percentage (say 1.5% and 15 cents), as Stripe does, you would probably retain my business for a lot longer. Suddenly, I pay a 4.5% cut to you as opposed to a 10% cut, which is quite reasonable. At the same time, Frank the antique vase seller doesn't really care about a 1.5% fee: a win-win situation.
tl;dr I recommend that you change to a percentage of the total sales: sellers of cheap items will use your service and sellers of expensive items won't care. There's a reason why Stripe, Visa, and every other payment processor everywhere ever does this.