Bango’s out-payment fee structure

On May 23rd we notified BlackBerry developers of some changes to how we handle fees for out-payment. The message states:

Bango offers BlackBerry® WorldTM vendors the opportunity to be paid via PayPal or by bank transfer. Both payment methods incorporate a small processing fee, which we are updating to best reflect updated transactional costs.
 
The Bango fee for every PayPal transaction is $6, noting that in some cases PayPal requires multiple transactions for a single settlement. The cost of a direct bank transfer is $20. In both cases, this fee is deducted from the revenue that is transferred to you to cover transaction costs. These updated transactional costs will be in effect as of July 1, 2013
.
 
If you have any questions or if you wish to amend the payment method by which you receive funds, then please contact
support@bango.com who would be happy to help you.

Several developers have since questioned the PayPal and bank transfer fee changes, so we wanted to share more about the rationale behind the fee structure. 

PayPal charges a fee to use their Mass Payment system to pay out to developers. Previously Bango absorbed this fee. In 2012 PayPal changed their Mass Payment fee structure. With these changes Bango was no longer able to absorb this fee, and therefore as described in the message, Bango will pass these PayPal fees on to the developers.

In setting the PayPal transfer cost, our principle is to only pass on the fees charged by PayPal. PayPal fees vary depending on a number of factors and are subject to change by PayPal. Our past experience has shown that fixed and predictable fees are much clearer for developers. At this time the average transfer fee is $6. If the average cost per transfer goes down, we expect to reflect that in the fee.   

We previously charged 1.8% for direct bank transfers. The effect of this was that while some developers were paying just a couple of dollars, some paid many hundreds of dollars, which is clearly too much. Again we’ve determined that a fixed fee is the simplest approach, and the $20 fee is designed to closely match our actual, average bank cost to send money via this payment method.

We are committed to offer you options and we encourage our developers to look at which is the most efficient payment method for their volume of transactions.

If you have any questions or if you wish to amend the payment method by which you receive funds, then please contact support@bango.com. We would be happy to help you.

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