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Micro-payments are generally defined as online transactions of low value, ranging from several pennies to around $10.00. Micro-payments are commonly used to pay for downloads of music, books, newspaper articles, or software, but could be used for virtually any low-priced item for sale on the Internet.
When a business charges these small amounts by credit card or other online payment methods, the fixed processing and gateway fees paid on each transaction quickly eat away at margins.
Monexa Billing offers two strategies to overcome this margin erosion and leave the lion’s share of the revenue for our clients.
Aggregated Micro Payments
Store the sales as they occur without actually charging your customers credit card, and aggregate them to be billed when the amount of the charge is big enough that the fixed processing fees are a very small percentage of the fee. With Monexa, your customers’ payment method can be pre-authorized before being stored in our secure PCI certified data center. Transactions are sent to Monexa Billing as they occur using a simple API call and stored to be charged against the credit card on file at a later date.
Stored Value Payments
An even better way to provide value priced services without the margin erosion of micro payments processing is to use a prepayment with draw down strategy.
In this scenario your customers make an advance payment against future services which becomes a “stored value”.
As services are purchased, Monexa Billing draws down on the stored value until a configurable threshold is hit and then notifies both the customer and the vendor of the need for a top up payment. Customers can simply sign in to their account and make a top up payment at any time, which adds to the stored value and allows them to continue purchasing.
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