Saturday, December 7, 2013

Minimum Payment

We reserve the right to charge a minimum payment.   This helps us offset the minimum fee costs we incur so we can continue to produce the product at the posted prices.

Paying more than you owe leaves a positive account balance in your TrepStar account that will be used to fund your future orders.

There are a few reasons why we may set a minimum payment:

  • If you don't order much, and you tend to order a single low cost item, which results in a small payment (less than $10.00).
  • Or, within a single session, you submit an order, then pay, then go back in and submit another order, then pay again etc...   The system was designed so you submit all of your orders first, then pay at the end.  

TrepStar incurs minimum transaction fees for each credit card, or paypal payment we accept.   Because of this fee, small payments cost us a lot more in terms of percentages.

We have chosen to require a minimum payment, rather than the alternative of charging the publisher the $0.30 transaction fee:

We pay 30 cents per transaction plus 2.9% of the total cost.  If all payments we received were $100.00 for example, it's not that bad.  It's $2.90 (the 2.9%) + $0.30  for the transaction fee for a total of  $3.20.  This is 3.2% of the total money collected.  We have roughly a 10% profit margin.  This means we paid 32% of our profit  just so we can take credit cards. This is very frustrating as it is... but it gets worse.

Unfortunately, if the payments are small, most if not all profit is used just to pay the credit card processor companies (visa/mc/amex and paypal...).

For example, if your payment is around $5.00,  we pay  $0.30 + 2.9% of $5.00 ($0.15).  That means we pay $0.45 on that $5.00 payment.  That's 9% in fees!

For small payments, we profit almost nothing, and can't keep competitive that way.

We realize you may be making only a few payments per week or month and 30 cents in fees doesn't sound like much but most of the payments we receive are from publishers who only submit a few orders per month.  That means the bulk of money we collect are payments less than $20.00.

REMEMBER:  A minimum payment results in a positive balance.  This means you will have a credit for future orders.  You don't lose any money.  You are just paying a little extra in advance which helps us spread out that transaction fee to a few orders.

If you are upset by having to pay a minimum payment, please email help@trepstar.com and explain your frustration.  We are just trying to find ways to keep prices low while still making enough money to continue.

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