Facebook Credits are a transaction system linked to your Facebook account. Facebook credits are ordered. They could be bought like any digital product. The business turns “real” cash into Credits. Any developer who wishes to create a game or program on Facebook can use Facebook Credits. As of July 1, 2011, the credits become required. People will now only be applying for a cash advance for one form of credits with Facebook instead of multiple forms with all the uses there are currently on Facebook. Source for this article – Facebook credits to become a mandatory payment system by MoneyBlogNewz.
All about Facebook credits
There is a payments system in Facebook called Facebook Credits. This is used in games in programs on the site. You can get Castle Wars medallions with the Facebook Credits. You can also get Farmville plants with it. Currently, the exchange rate is 10-to-1 – 10 Facebook credits for each United States dollar. There are different ways you can pay for your Facebook credits. You are able to use mobile payments systems, credit cards or even PayPal. There are several different currency standards that Facebook Credits will do exchange rates with.
Requirements for credits with Facebook
There was an announcement from Facebook about these Facebook Credits. Starting July 1, all games can be necessary to use them. The in-game currency is still allowed by game designers although the credits are the only way to purchase them. There is a claim from Facebook that this will help things a lot. The barrier that transaction systems have will be lifted with this transaction program supposedly. Facebook benefits from the Facebook Credit transactions. Thirty percent will go to the web site company. Zynga was one developer to pay $30 million to Facebook to actually pay the 30 percent tax in 2010. That leaves 70 percent of the Facebook Credits to be turned over to the game developer.
Seeing micropayments soon more to the future
"Micropayments," generally less than $5 in small payments and purchases, are what the Facebook Credits program is based off of. Facebook Credits means that the company stands to make millions, if not billions of dollars. Facebook hopes to be like PayPal or the Starbucks Card system in that it can be a Credit system that is expanded into a complete transaction program. There’s a good chance this secondary system will fail though. There was a banking crisis for the online game Second Life in 2008. Users ended up losing millions of dollars because of this. Is it possible for Facebook Credits to do this exact same thing? Only time will tell.
Articles cited
E Money
emoney.allthingsd.com/20110124/facebook-credits-will-be-mandatory-payment-platform-starting-july-1/?mod=twitter&utm_source=twitterfeed&utm_medium=twitter
TechCrunch
techcrunch.com/2011/01/24/facebook-to-make-facebook-credits-mandatory-for-game-developers/