Why minimum payout limit is required?

@mkannanm (582)
India
December 29, 2009 7:07am CST
I joined few PTC and PTR sites. All the site are having different minimum payout limit. It varies from $0.25 to $10. Previously i thought, it is because of payment processor limits minimum transfer amount. Say, Paypal has $0.01, Alertpay has $1 etc. But still it is not related to actual minimum payout limit. Another reason I thought was the transaction fee charged by the payment processor. But then also, there won't be huge minimum payout limit. Finally i am thinking, i may be due to Tax. Can i anyone make clarification on this? Low minimum payout limit gives me a control of cashout every month.
3 responses
@echomonster (2227)
• Greenwood, Mississippi
29 Dec 09
Another issue is that it takes effort for the webmaster to verify payout requests (to make sure users aren't cheating) and approve them. The lower the minimum payout, the more work for the webmaster. As an earner, I of course like low or no minimums...but it means more work for the site!
@mkannanm (582)
• India
30 Dec 09
Yes. I got your point. Surely webmaster payout load should be considered to decide minimum payout.
@sonusd (1547)
• India
29 Dec 09
when we join any site every site has there minimum pay out it is because they can not send any amount to any member. because they have to pay a transaction fees which may be some time equal to the paid amount so they have decided to pay some money which will not cost them too much. suppose they will send you 20 cent and may be there transaction charge for transferring this money will be 20 cent then they have to bear loss so they decide to pay $2 so the site give more earning chance the set higher minimum pay out and one more thing also some member feel bore and they discontinue from that site so the site owner can keep all that money with them. They do not have to pay a single money to the member and they get free work from the member
@mkannanm (582)
• India
29 Dec 09
Some sites like neobux, palmbux charges 2% to 6% as transaction charges during payout. But still has high payout (increase from $2 to $10). will this not solve the charge? I accept your point on discontinue of members. Surely it will help site owner. But low minimum payout will attract more members.
@monouu (2608)
• Singapore
30 Dec 09
I guess it is the workload involved in processing those payout. Admin need to check for cheaters and not all do mass payout so everything take time. If the minimum payout is too low, he'll be flooded with numerous request everyday and finding it hard to cope.