Tip service fees

[wooden_fish]

In all reality, though, the transaction fee for Fiverr is only a few per cent,

@wooden_fish I know that it’s not nearly as much as fiverr charges but honestly, would you rather that fiverr increases their 20% cut of the fees buyers pay? Not me.

Fiverr has about $50,000,000 of investment money it needs to start paying back somehow.

I try to think like a manager of a site like fiverr to understand what some of the things it does are for.

Fiverr has about $50,000,000 of investment money it needs to start paying back somehow.

More like $100,000,000. But it’s equity investment-- they don’t have to pay anything back directly.

[tolaart]

Kinda have to agree with jonabe on this. Kinda ridiculous to charge a service and transaction fee on tips when they are such a small amount.

I understand how they need to pay transaction costs for a separate transaction, but does it need to be this way…

Why couldn’t they just combine the tip with the original invoice, and subtract the tip amount from being included in the service fee percentage?? Just takes extra lines of code…

[misscrystal]

Kinda have to agree with jonabe on this. Kinda ridiculous to charge a service and transaction fee on tips when they are such a small amount.

I understand how they need to pay transaction costs for a separate transaction, but does it need to be this way…

Why couldn’t they just combine the tip with the original invoice, and subtract the tip amount from being included in the service fee percentage?? Just takes extra lines of code…

Why couldn’t they just combine the tip with the original invoice

First the credit card is charged for the order. Then the tip is charged. It’s possible someone could have enough credit for the order but not for the tip so they are separate. At least that’s what it seems to be. I never studied my credit card statements enough actually to notice.

[tolaart]

Why couldn’t they just combine the tip with the original invoice

First the credit card is charged for the order. Then the tip is charged. It’s possible someone could have enough credit for the order but not for the tip so they are separate. At least that’s what it seems to be. I never studied my credit card statements enough actually to notice.

Thanks for the help and explanation misscrystal!

[engshimul]

You walk into a restaurant, have dinner, tip the server with your credit card or debit card. Is the restaurant owner entitled to part of that tip? Or should the restaurant goer pay the owner extra to leave a tip?

No because for one thing that is not a separate transaction. The restaurant does not have to pay a new transaction fee for the tip.

If you could understand how credit card processors work you would see why tips are treated like any other transaction by the credit card processors.

I don’t know the details of how fiverr handles this, but it appears that a tip is a completely separate charge from the main order. It is processed AFTER the main order.

If the transaction fee is the point then I have an idea, maybe that would work or not. But I don’t want Fiverr earn less in any way whatever buyers or sellers feel, I don’t care. As a seller sometimes I feel the same (basically when the main amount is very tight) but I love Fiverr because they give me sales.

[misscrystal]

After the order starts, if they ad an extra, that is a separate charge too, but there is no transaction fees on that. So the extra fee is just on tips but not on any extras they add after the order starts.

[fonthaunt]

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