I assumed it was mostly to pay for chargebacks and fraud. What I think is crazy is basically anything < $10 doesn't need chargebacks, fraud protection, etc, and the fee is inordinately burdensome for those transactions.
On a $1 itunes song it would have been an >30% cut, you can forget about selling any small digital thing worth less than that.
On a $1 itunes song it would have been an >30% cut, you can forget about selling any small digital thing worth less than that.