Bitmunk was founded on a number of principles that we have, unfortunately, not codified on the website yet. One of those principles is the concept that we will always strive to give a detailed break-down of the costs associated with the purchase of any digital good on our network. While some of our customers may not care about where the money goes, others do want to know exactly how much is going to the artist. The fundamental principle at work here is transparency. We believe that transparency regarding how we run our network, manage our costs and reward artists, buyers and sellers is a fundamental operating principle for Digital Bazaar.
Displaying credit card fees have been a part of this transparency. We list all fees that credit card processors charge so that our customers know where their money is going. Typically, this has been about 4.17% per credit card transaction. That is money that goes directly to the credit card agency and we include it as a line item on our website so that our customers know that we aren’t profiting in any way from that charge.
Credit card processors vary widely in the services that they provide as well as their technical sophistication. We have been appalled at how backwards some of the transaction systems are in the banking industry. Credit card processing is no different. Typically, when you use your credit card, some online stores don’t check your address. In other words, they bypass address verification completely because many people enter their addresses incorrectly.
The seedy under-belly of credit card transaction processing…