Read on Twitter
I should probably explain why I think this is funny.
DSA for a long time had run on an annual dues plan for it's members, asking members to pay and manually re-enter their info every year to remit dues.
They decided switch to a monthly plan, which was never a good idea. https://twitter.com/3amwafflehouse/status/1321275227356205057
DSA for a long time had run on an annual dues plan for it's members, asking members to pay and manually re-enter their info every year to remit dues.
They decided switch to a monthly plan, which was never a good idea. https://twitter.com/3amwafflehouse/status/1321275227356205057
The reason is because of credit card transaction fees. Visa, Mastercard and all other companies charge a rate *to the business* for accepting a credit card. Usually the rate is something like $2 flat and 3% of whatever you charged the credit card holder.
Because of the flat rate portion of that fee, going monthly basically meant increasing the amount of money you'd lose 12x than having someone just pay annually.
There's a reason why most subscription service companies offer a steep 10% discount if you switch to an annual plan.
There's a reason why most subscription service companies offer a steep 10% discount if you switch to an annual plan.
But DSA went the other direction, asking members to switch to monthly payments, probably not realizing that their revenue was about to get slashed by 10% for it.
The solution is now ACH transfers. Which is complicated and basically offers no protections for members at all.
The solution is now ACH transfers. Which is complicated and basically offers no protections for members at all.
Going to bank transfers will help them recoup some of that money they lost by going monthly, but if they had just stuck to an annual plan and simply wrote in an automatic payment renewal system, that would've been optimal.
Anyways, I raised this concern about 2 years ago and well, I was branded a partisan for it and now DSA is apparently dealing with the financial issues coming with that decision. So that's why it's funny to me.
