5% for credit card deposits. 10% for with drawls. How can a participant make any money with such high commissions?
Of course, there are merchant fees on debit and credit cars in the US, fees that the merchant must pay to the card issuers. If you do not know this, you should inform yourself and stay silent on the use of cards until then.
. . . When you buy, for example, 1000 PI dollars that are displayed as Cash = 1000 on your PI website, you pay the price of 1000 US dollars or $1000, but your money doesn't go 100% to PI, the merchant in this case. Instead, PI must pay fees to your bank and to your the card company, most often VISA or MasterCard. PI gets maybe $980 of your $1000 transaction or $994, depending on the card, but displays it as 1000 PI dollars. When you want to exchange your 1000 PI dollars back to US dollars, PI couldn't pay you $1000, because they never had all your money. Instead, they pay you back $950, which allows them to pay the merchant fees and keep something for themselves, not $50 but less.
@ Peter_T ... Perhaps we are in different coountries and things work different with credit/debit cards. There are no merchant fees at all on my Wells Fargo debit card in the United States. Just the 10% on profits when I sell shares and the 5% withdraw fee to transfer cash back to my checking account.
trismigistus, it appears you're concern trolling. It doesn't matter from the customer's view if you use your debit card or use your credit card and pay the balance in full when it's due. The question of PI fees is, however, connected with the fees for cards FOR THE MERCHANT that can be unreasonably high.
. . . I have made money with the current fee structure, but I hate the 10% fee on gross profits, because the fee makes it difficult to profitably hedge, my favorite kind of betting.
It goes without saying you really should not be gambling with borrowed funds in the first place. Using a DEBIT card that deducts funds directly from a checking account is perfectly fine. That was how I did it and there were no fees charged at all.
Don't deposit money with credit cards, but in other ways, for example from checking accounts. I understand PI that they must take a large fee from credit card users, because the issuers take a large cut from the merchants, to pay for their high cashback versions.
. . . The 10% for withdrawals is more like the cost of doing business. PI provides the infrastructure, and you pay for it.
Way I understand it you pay 10% on the profit you make when selling a share. If you bought the same shares multiple times at different prices the ones you bought first are sold first to determine the amount of profit the 10% is calculated on. You are not charged 10% on the amount of the share that you paid when you purchase it.
You buy x1 share for .50 cents and it goes up to .60 cents. If you then sell that share @ .60 cents you only pay .01 cent which is 10% of .10 cents profit you made.
If you break even there is no charge. Unlike the stock market which charges for every trade you make to buy, or sell PredictIt allows you to make unlimited buys and sells at no charge.
Finally when it comes time for you to withdraw money you pay 5% processing fee on the entire amount. Simple math tells you how easy it is to make a profit.
I deposited $300 and am on my third trade. Come December 12 when the outcome of my bet is decided I expect my 800 shares to be worth $800.00
$800 - $300 = $500 profit - $50 (10%) to sell the shares leaves $750 cash on my $300 initial deposit. If I decide to withdraw all $750 and quit playing I will pay a processing fee of $37.50 to transfer my funds, or have a check sent on my balance of $712.50.
That works out to a $412.50 profit.