Devs have to pay an additional 42% when customers get a refund. Is this true?
According to the article below, of you buy an app for $10, Apple takes $3, and the dev gets $7. But when you ask for a refund, the dev has to refund the entire $10; Apple keeps its $3. So when you apply for a refund it actually costs the developer an additional 3/7 = 42% of his share of the app price.
Here’s the article, which is very out of date:
They quote the Apple terms of service agreement with developers, which I did not read when I signed it:
6.3 In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application. In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end-user.
So the 30% that goes to Apple is a “service fee” that the developer pays to Apple in exchange for use of the App Store. And when a customer asks for a refund, Apple keeps the 30% service fee but the developer still has to refund 100% of the app price.
If this is true then every time you use the refund system to “try out” and app, you are taking 30% of the app price from the developer and giving it to Apple. That’s a pretty sweet deal for Apple.
However, This article from 2009, says it’s not actually happening that way:
No references though.
I have difficulty figuring out if this is correct or not because Apple doesn’t show individual app sales and refunds on their financial statements. It’s all lumped together.
Can anyone confirm if it’s true or not?
I’m curious because on another thread a customer was advocating buying apps to try them out and then getting a refund when you are done testing. I thought that was a good idea because it gives a free trial period, which is nice for both developer and customer. But it’s not nice to make the app dev pay 42% of his app revenue every time a customer does a “free trial”. I think customers who do this “trial” thing would stop if they knew it was costing the developers money, so it would be nice to know for sure if it’s really being charged like that or not.