Question About Annual Membership

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1

Hey,

I’m a long running Patreon user. I have a native membership on my site that runs concurrently alongside Patreon. When it comes to Paypal… I get charged per transaction. They recently jacked it up, but it used to be $0.30 per transaction and 2.9%.

This meant that at a $1 tier, you were losing about 33 cents. When you get 100 people giving $1, that means $33 go to paypal. Meanwhile, 1 person giving $100 will only be charged $3.20 roughly.

The point I’m making… does Patreon carry on the “per transaction” for lower tiers, and subsequently… would an annual membership which charges more end up meaning you get more money?

I had heard once that they cut a deal with their payment processor where they don’t get the per transaction fees, so all you pay is the 2.9% plus Patreon’s cut no matter what tier it is, but I just wanted to check.

2

Hey there -

Thanks for being around for a while and for checking in with your question here!

You’re correct in thinking that you would receive more funds if your patrons were to pay annually instead of monthly. That’s because the fees only apply to each transaction, not for what the transaction represents.

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