Who came up with the Points pricing scheme?

I can forgive the weird 80 Points = $1 conversion, but why does a 1600 Point package cost $19.99, while four 400 Point packages comes to $19.95? Generally, people expect to save a little money when buying larger packages, not smaller ones.

 

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Last updated July 4, 2018 Views 0 Applies to:

if you do the math its self explanitory

if you buy smaller amounts you don't pay so much tax because the taxable amount is lower its the tax times the balance

however if you try to buy too many small amounts in short amount of time you will trigger a fraud trigger on your payment option then you will have to call your bank or wait 48hours

 

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I did the math. It didn't explain anything.

1600 Points = $19.99

400 Points = $4.99 X 4 = $19.95

No tax was or has ever been charged to me for purchasing points because they are an online purchase and I do not live in the state of Washington. The entire tax point is irrelevant, though, because taxes are a percentage of the purchase. You would pay X% regardless of how much your purchase was.

Your point about the fraud trigger is also irrelevant because it has no bearing on how much the points actually cost. If my fraud protection were that sensitive (and it isn't), I could buy two 400 point packages today and two tomorrow and not trigger anything.

Typically the only time it costs more to buy a larger package is when some assembly or labor is required, such as when building a computer. You can pay a little more to have the computer assembled and the OS installed for you, or you can save some money by purchasing the individual parts and assembling it yourself.

So my question still stands: why is it more cost effective to purchase multiple 400 point packages instead of one large one?

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actually you do pay taxes on ms points its not shown on your transaction because its on the backend it is included  in the pricing of the points

2 same transactions will never trigger a fraud trigger , spacing them out will avoid that also over 2 days its 24hour period requirement

 

the only time you see taxes applied is when you make money purchases for games on demand on xbox or psn

 

 

 

 

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also you have to take into account, retailers have to  take their own cut

vs buying 400ms points from ms you are just buying direct

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"actually you do pay taxes on ms points its not shown on your transaction because its on the backend it is included  in the pricing of the points"

No, it isn't. Source: gaming.stackexchange.com/.../do-microsoft-points-bought-directly-from-xbox-live-include-tax

"4000 points list for $49.99, and my most recent purchase, in March 2011, was billed for $53.49 (Indiana, where I live, currently has a state tax rate of 7%)."

I was only charged $4.99 per package for each of my 400 point purchases, so state sales tax is not being applied in my case, or I would have been charged $5.34 (my state also has a 7% tax rate). But again, the tax is irrelevant because that's a constant percentage of the purchase price. Even if you remove the 7% extra I'm supposedly being charged for taxes, the cost comes to $18.68 for 1600 points and $18.64 for four 400 points packages.

Retailers have nothing to do with this, I have no idea why you've brought them up. I'm talking only about buying directly from Microsoft through either my 360 or the xbox.com site. Retailers actually have it right, though, since I typically see 400 points for $5 and 1600 points for $20 unless they're having some sort of sale. But since I'm purchasing from a physical store instead of online, state sales tax is then applied.

My question still stands.

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Hey Overglock, we don't have any information on the current MSP pricing. If you would like, you can leave a comment in our wishlist/feedback forum so we can get it to the right eyes!

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