Can someone explain the purpose of digital convenience fees?

Question

I would’ve thought that makes it easier on all parties. Or is this just another way to suck money out of people?

In: 34

Answer 1

since this is an ELI5. Nothing is free, digital products still cost something, be it for the type of money used, the increased customer service around that method or the need to subsidize something else. Some times its easier to build the margin into a fee than a product cost (particularly if the cost varies wildly by method of payment)

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At my job I have digital products that I charge a fee on…generally its to mitigate costs somehwhere else, in my case its almost always customer service (people calling saying x product didnt work, or they don’t know how to redeem it etc etc)