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Tuesday, March 8, 2016

Good News, Bad News - Changes to $L Payouts

Yesterday, Linden Lab announced changes to their system of buying and selling Linden Dollars ($L).

On the good news side, one of the things I've complained about for a long time is the time it takes for LL to get money from your $USD balance to your PayPal account in a "Process Credit" transaction.  They say "5 business days" but it sometimes takes as long as 10 days.  At the same time, LL insists on INSTANT payment when WE pay THEM.  This has never seemed fair.

In their announcement, LL says that now, most Process Credit transactions should complete in 2 business days, although they do hedge their bets and say that some transactions may continue to take up to 5 business days.

That's the good news.

In the same announcement, LL says that they are raising the fee for purchasing $L from $.30 to $.40 per transaction...a 33% increase.  That seems excessive, although because of the small actual amount of the fee, I suppose most people won't complain much.

The announcement does not speak to the 3.5% transaction fee charged for selling $L and converting them back into $USD, so I'm assuming that remains unchanged.

Then there is the $1.00 processing fee they have been charging for a Process Credit transaction.  That is now changing to a 1.5% fee per transaction, with a minimum charge of $3.00 and a maximum cap of $15.00.  That is a MINIMUM increase of 200%!  Ouch.

To minimize the cashout fee (as a percentage of the transaction) you should plan on transferring at least $200 USD per single transaction, and over $1,000 if you can.  The larger the transaction over $1,000, the lower percentage of it that $15 will represent.  Those of you who have been taking out $20 or $100 per month should re-think your business models.

For the official announcement, see this link: https://community.secondlife.com/t5/Featured-News/Faster-Credit-Processing-amp-Upcoming-Changes-to-Fees/ba-p/3011794

Frankly, Ebbe, I would've preferred to just wait the extra few days for my money.

2 comments:

  1. I never had the luck to cash out in all these years, but my love does some from time to time, from our shop and she is also not enjoying the change to much, but we can understand its need, if only LL gave us all some in return, like lowering mainland fees.

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    1. They haven't lowered land tier, but they DID lower the cost of a monthly Premium account from $9.95 to $9.50 per month, and they lowered the cost of buying private regions by 40%...it now costs $600 USD for a full region, instead of $1,000.

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