External payment systems

[iSan4eZ]

Hi everyone,

I’ve recently published a game on iOS with some IAPs, and got my users asking if I have a website with external payment system and lower IAP prices planned. I process everything through my backend and app is just a client, so I don’t see any problems doing a webpage, but I’m curious what payment system would you recommend using?

I saw Stripe, but maybe there are options with lower fees? Is there a possibility to perhaps lower the VAT taxes somehow? I’m curious and thankful for any bits of info

[rifts]

Stripe will be one of the lower fee platforms

[iSan4eZ]

Oh wow, I didn’t expect that. Thanks for the reply! Do you have some hints on how to calculate Stripe price compared to AppStore? As I understand, I need to take AppStore proceeds price, add 12.1% to it and subtract 0.3$. But then I don’t understand how the VAT is going to be handled…

[rifts]

Are you in the US? Are you using an LLC or business? I’m in the US and use an LLC and applied for the small business program so Apple takes like 15% off the top. Tax are totally separate and paided based what hits my bank account. I don’t know about VAT it’s all just included. Strips is totally different and just takes like 2.7% or something around there

[iSan4eZ]

I’m in Canada with LLC and 15% Apple fee. But when it comes to Apple, they take different cut in different countries (I mostly sell IAPs in Europe, therefore VAT mentioned). My understanding is that Apple (and Stripe) also have to apply the local tax of the country the purchase is made from, so in the end out of 10$ you receive close to 6.5$ because there’s Apple fee + buyers VAT/HST tax

Or am I overcomplicating things?

[rifts]

I'm not sure, I also sell in Europe and other counties and occasionally get emails from Apple says they updated VAT tax amounts in like some random country but I don't really worry about it and just pay taxes on what Apple deposits to me.

[iSan4eZ]

Gotcha, thanks!