Screw fixed fees, me and my homies hate fixed fees
November 8, 2022
Fixed fees suck.
Unfortunately with credit card processing, networks don’t just take a percentage, they also take a fixed processing fee. The industry standard is 2.9% + $0.30 per transaction.
In order to keep our minimum interaction price to $0.50, that meant hefty fees. Like $0.50 * 0.2 + $0.30 = $0.40, or $0.10 left for the streamer… yikes.
We hated this fixed portion too, because it not only makes our fees seem really high at small scale, but it goes directly to the credit card companies which are profitable enough.
Removing Fixed Fees Once and For All
Today, I’m excited to announce that there are no more fixed fees on interactions, ever again. And because of this, we’re passing the savings down directly to creators! Why is this not an issue with Twitch bits?
Because Twitch charges the viewer up front. $1.40 for 100 bits, but 1 bit = 1 cent to the streamer.
How are we able to do this?
Data Science! Well not fully that, but as long as our median interaction price for credit card transactions remains above the amount we need to offset losses, everything is peachy :)