Appcharge Player Transaction Breakdown Explained

Appcharge operates as the merchant of record (MoR) white-label solution for The Publisher provides a seamless way for gaming companies to manage financial transactions without the need to establish their own merchant infrastructure. Here’s a breakdown of how a player-paid transaction is typically distributed using such a system:

  1. Player-paid gross transaction: The player pays the selling price in his local currency, which the publisher determines via the Appcharge platform, including local sale tax / VAT.
  2. Local Sales/VAT Tax: A portion of the transaction is allocated to local taxes, such as sales tax or VAT, depending on the player's location. Appcharge's MoR solution automatically calculates and remits these taxes to the appropriate local tax authorities, ensuring Appcharge and the publishers - gaming companies fully comply with local tax laws for selling digital goods. The world is generally divided into two main models of tax included in the price and tax excluded from the initial price. Appcharge will calculate and present the tax according to the local Buyer protection laws.
  3. Currency Exchange Costs: If the transaction involves currency conversion (e.g., a player in Japan paying in Yen on a web store), there are costs associated with the currency exchange. These fees compensate for the currency fluctuation risks and conversion services. Appcharge has no currency exchange fee and rolls the charred amount by the Payment providers we are working with
  4. Platform Fees: This is the cost charged by the Appcharge MoR service provider for facilitating the transaction. It covers payment processing, fraud prevention, tax handling, and other administrative services. This fee is usually a fixed fee based on a percentage of the transaction amount. There are two main fee structures: one for credit cards and payment methods that rely on them, such as Apple Pay, and the other for APM—alternative payment methods.
  5. Publisher Net: After the platform fees, currency exchange costs, and taxes are deducted, the game publisher's net revenue is the remaining amount.
  6. See also about Appcharge Currency Conversions.

With this structure in place, Appcharge ensures that all financial and legal responsibilities are handled efficiently. This empowers gaming companies to concentrate more on game development and marketing, freeing them from the complexities of financial regulations and processes.