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Show HN: Small Transfers – charge from 0.000001 USD per request for your SaaS

(smalltransfers.com)
194 points strnisa | 3 comments | 10 Sep 25 12:56 UTC | HN request time: 0.982s | source

Hi HN,

I built Small Transfers, a payments platform for SaaS / API makers who want to bill customers per request instead of pushing them into subscriptions or pre-buy packages.

*Why?*

  - Many customers hate subscriptions and/or want to use a service occasionally.
  - Traditional payment processors add a fixed fee to every charge, making charges below 1 USD impractical.
  - Stripe UBB tracks usage, but you still need to write your own auth, add spending limits, and each merchant charges cards separately (extra fees for customers).
*How it works?*

  - Each merchant has a Small Transfers account linked to their Stripe account via Stripe Connect, which is used to transfer payouts to merchants.
  - Each customer has a Small Transfers account where we verify them using Google Sign-In, 3-D Secure, and Stripe Radar to minimise the chances of a customer not paying their balance.
  - Customers allow your service to identify and charge them via platform's own OAuth. This also removes the need for your service to implement its own auth. (Simple services don't even need their own database.)
  - Merchants call a simple REST API to authorize and capture a charge with a minimum amount of 0.000001 USD. Note that you can authorize more than you capture, allowing you to authorize the max amount your request might use, and then capture your actual cost plus margin (great for many use cases, e.g., AI).
  - The platform takes care of charging customers and sending payouts to merchants.
  - Merchants pay a flat 3% fee. Customers pay payment processing fees when they pay for their balance.
There's a Next.js Starter project (https://github.com/smalltransfers/nextjs-starter) and a live demo (https://nextjs-starter.smalltransfers.com/).

I've been dog-fooding the platform with my own service (https://unattach.com/) and would love your feedback, specifically:

  - The general approach and whether there is anything I should do differently.
  - Any concerns and how I could mitigate them.
  - Any other feedback.
I'm also looking for more merchants to try out the platform, and can help you with the integration.

Thank you for your time! Happy to answer questions here.

Show context
freakynit ◴[10 Sep 25 13:12 UTC] No.45197129[source]▶
I had 100% same idea since a few months now. Didn't pursue it because of lack of companies and customers willing to use such a platform as intermediatory.

Secondly, the legal aspect. Will this be considered as a wallet?

Anyways, loved to see it implemented by someone.

replies(1): >>45197144 #
strnisa ◴[10 Sep 25 13:13 UTC] No.45197144[source]▶
You're right to consider this, as it's an important aspect from a legal perspective.

Since Small Transfers doesn't store customers' funds or allow them to withdraw a balance, the platform is not considered an e-money institution or a "wallet".

When the customers pay their balance, we immediately forward the funds to the merchants.

replies(1): >>45201508 #
otterley ◴[10 Sep 25 18:05 UTC] No.45201508[source]▶
What happens when customers don't pay their balance?

What happens when the charge attempt fails after initial preauth?

replies(1): >>45201682 #
1. strnisa ◴[10 Sep 25 18:19 UTC] No.45201682[source]▶
Ultimately, the merchant bears the risk of non-payment, but the platform does its best, using industry-standard practices, to pre-check the customer and their payment methods for fraud and ensure a successful payment.

If a merchant successfully authorizes a charge, the amount is reserved for that merchant for a limited period. Trying to capture that amount (or less) during this period will succeed.

replies(1): >>45202544 #
2. otterley ◴[10 Sep 25 19:35 UTC] No.45202544[source]▶
I'm a little confused. Is Small Transfers not the merchant for the CC transaction? (Your website suggests Small Transfers is the merchant of record and then transfers funds to the seller.) If not, what's your role in the settlement process?
replies(1): >>45202909 #
3. strnisa ◴[10 Sep 25 20:08 UTC] No.45202909[source]▶
Yes, Small Transfers is the merchant of record for the card charge. We transfer only funds actually received to the merchant's Stripe account; we don't advance funds. As per the Terms (§1 "Transfer" and §5.6 "Non-Payment"), chargebacks/reversals are net-deducted from future transfers, so the seller bears non-payment risk.

Details: https://smalltransfers.com/terms