My comparison with the mafia, though obviously not meant by a long shot, was more about how theyve just changed the terms and conditions on you when youre an entrenched customer with not much other choice than to leave them.jinxtigr wrote:It's exactly the same as all payment gateways, except that it's 2.9% and $0.35.VariKusBrainZ wrote: Yeah, how is this any different to mafia style 'protection payment' extortion, other than you can't refuse to pay up and have your kneecaps broken instead
Payment gateways, which this is, are 2.9% and $0.30 everywhere else. https://givewp.com/paypal-fees-much-pay ... -donation/
Except, Patreon has no setup fee (some do, like Authorize $45) and Patreon's monthly fee isn't $25 (Authorize) or $30 (Paypal Pro), it's 5% out of your share. That part affects small creators less.
Merchant account payment gateways can be less: https://www.merchantmaverick.com/mercha ... son-chart/ but though you can get smaller retail rates (NOT necessarily ecommerce), you start to get into monthly fees like $79 or $199/mo if you really want to get low rates and fees on the transactions, plus they're not necessarily managing a website for you, and if people totally don't recognize who you're using, that'll make them more wary of getting involved. Also, I don't know which of those guys are going out of business, and when Kagi went out of business I lost months of income.
You can use this sort of thing instead of Patreon, but as someone who has done that, it forces you to be an entrepreneur and you have to do all this: be your own mafia, screw your own customers just the way Patreon's doing it, hope that your infrastructure (merchant account gateway, shopping cart system etc) doesn't go out of business or start cheating you. Kagi didn't cheat me and had very good rates, and they got driven out of business by newer sketchier companies in the same sector, who had worse deals but much flashier and more deceptive presentations.
If you want to draw Mafia comparisons, you should do it with the ENTIRE financial sector, because increasingly everybody who doesn't act like that just dies. I (politely, I hope?) take offense with the idea that Patreon is uniquely sketchy. If you research payment mechanisms, Patreon's become more typical and you can get things skewed various ways but there's always a catch. And Patreon's terms are extremely normal for a payment gateway, except that they have no setup fee and no flat monthly creator bill, and they balance that by having a creator percentage and five cents more per transaction on the patron side.
If anything they should have allowed long term customers a grace period or exemption to the change in policy.