Eddy Cue just explained why Apple's credit card charges feel so random
9to5Mac • • technology
Key Points:
- Eddy Cue, Apple’s senior vice president of services and health, revealed that Apple managed to sell songs on iTunes for $0.99 by batching purchases to offset credit card fees, charging users once for multiple songs bought within a set timeframe.
- The fixed credit card fees on small transactions like $0.99 songs would cause Apple to lose money if charged individually, so Apple kept the transaction open for several hours to combine purchases before charging the card.
- This batching system is still used today for App Store purchases and subscriptions, which can result in combined charges appearing on credit card statements, sometimes causing confusion for users despite Apple sending receipts.
- While the batching approach is efficient from a business standpoint, it has led to the perception that Apple charges users randomly each month, although there is a clear method behind the timing of charges.
