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When a customer refunds your paid app, Apple refunds its 30% cut [edited]

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Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#171
post #150

Earlier quoted context omitted.

I don't see what kind of regulation Steam needs. They are hardly the only storefront on the platforms they support, aren't the default one, have almost no exclusive content, and don't even take a cut if you sell Steam keys on other stores. What is there to regulate? If you don't like their terms you can sell on a different store or distribute yourself, there's nothing stopping you like there is on a typical iPhone or…

Steam did not offer refunds at all until they came into trouble for it in Australia and the EU. That is what regulations are for.

Other than lack of refunds and poor support for a decade, Steam was still the most consumer friendly app store. They got everything else right.

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#172
post #74

I don't understand something here.. let's say I sold an app to someone for $100. 1. Someone pays me $100. 2. Apple takes 30%, so I only get $70. 3. Customer asks for refund and gets back $100. 4. Apple takes back the $70 from me. If Apple was skimming 30% off from the start, how does that affect me during a refund?

I would guess what happens is actual money does not change hands when a purchase is made.

Instead, Apple keeps records of what it owes each developer, and at some later date (likely monthly), it makes one big payment to the developer.

Thus at purchase time, Apple enters +$70 in the records it keeps of what it owes a developer. And at refund time, it enters -$100. So the net effect of a purchase and then refund is +$70 + -$100 = -$30.

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#173
post #74

I don't understand something here.. let's say I sold an app to someone for $100. 1. Someone pays me $100. 2. Apple takes 30%, so I only get $70. 3. Customer asks for refund and gets back $100. 4. Apple takes back the $70 from me. If Apple was skimming 30% off from the start, how does that affect me during a refund?

The answer is that you're thinking of it the wrong way. See it this way: You make 3 sales of $100. One gets refunded. You get paid $200 - $90 = $110 instead of $140, because in practice Apple pays you in batches and doesn't pay immediately for each purchase.

Now I'm more confused. I get why it "should" be $140 but I have no idea where the $90 came from.

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#174

Earlier quoted context omitted.

Will they? In some jurisdictions they are required by law to grant refunds. In others, they still have very little incentive to control refund fraud, what with the fact that they're still making money rather than losing it. It would be one thing if they said "We're keeping the credit card processing fees so that we don't lose money," but to keep the whole 30% cut is just petty.

I've never heard of any jurisdiction where unconditional refunds are required. A lot do require refunds if the product is faulty but that's different.

The jurisdiction that will come to most minds is the EU, but it has exemptions for digitally downloaded content and unsealed software.

https://europa.eu/youreurope/citizens/consumers/shopping/gua...

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#175

Earlier quoted context omitted.

Will they? In some jurisdictions they are required by law to grant refunds. In others, they still have very little incentive to control refund fraud, what with the fact that they're still making money rather than losing it. It would be one thing if they said "We're keeping the credit card processing fees so that we don't lose money," but to keep the whole 30% cut is just petty.

I've never heard of any jurisdiction where unconditional refunds are required. A lot do require refunds if the product is faulty but that's different.

In Sweden you have to explicitly waive your right to a refund. Otherwise you can do it for 14 days.

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#176
post #115

Earlier quoted context omitted.

What laws would be broken in this case?

Tortious interference, also known as intentional interference with contractual relations, in the common law of torts, occurs when one person intentionally damages someone else's contractual or business relationships with a third party causing economic harm. https://en.wikipedia.org/wiki/Tortious_interference

I've heard of this but am curious, does this also apply to people calling for boycotting companies?

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#177

Earlier quoted context omitted.

Will they? In some jurisdictions they are required by law to grant refunds. In others, they still have very little incentive to control refund fraud, what with the fact that they're still making money rather than losing it. It would be one thing if they said "We're keeping the credit card processing fees so that we don't lose money," but to keep the whole 30% cut is just petty.

I've never heard of any jurisdiction where unconditional refunds are required. A lot do require refunds if the product is faulty but that's different.

Europe does have 14 days refund for online orders, without conditions.

https://ecommercenews.eu/online-returns-in-europe/

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#178
post #115

Earlier quoted context omitted.

What laws would be broken in this case?

Tortious interference, also known as intentional interference with contractual relations, in the common law of torts, occurs when one person intentionally damages someone else's contractual or business relationships with a third party causing economic harm. https://en.wikipedia.org/wiki/Tortious_interference

[deleted]

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#179
post #153

Earlier quoted context omitted.

It's different when TV manufactures put Dolby in charge of advertising and supporting the feature. Then charge them a cut of their profit, with little to no recourse or dispute mechanisms. Besides that, it could be argued that running software is the feature. What software does is not a feature of the iPhone. Like a recipe is not a feature of a stove. We are buying the device, it's a tool, and we should control how i…

Apple's view is that the third party software that runs on their phones, which they provide to you and which they charge you for, very much is a feature of their phones. I agree it's a tool and you should control how it's used, but you're demanding that Apple implement specific features for you that they don't want to implement. How do you intend to coerce them into doing that? Who gets to specify precisely how those…

[deleted]

Re: When a customer refunds your paid app, Apple refunds its 30% cut [edited]

#180

Payment processors generally don't refund fees on payments when the payments are refunded, this isn't new. It's remarkable mainly because (a) it's 30%, not 3% and (b) the App store doesn't position itself as a payments processor the way Stripe does, so it sounds really weird that they would act like one. If the app store took a 3% chunk and never refunded it regardless of the ongoing status of the transaction, that w…

PayPal does refund the variable portion of the fee (e.g. 2.7%) but not the fixed portion (e.g. 30 cents).

Not true anymore. Check their website https://www.paypal.com/us/smarthelp/article/is-there-a-fee-f...
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