Faulty Microsoft Payment System Stiffs App Developers

Dennis Faas's picture

Microsoft is drawing heavy criticism this morning after it was revealed that the company's Windows Mobile Marketplace could be denying app developers large amounts of money due to flaws in the Redmond-based firm's payment system.

Microsoft received an overwhelming number of complaints from angry software developers claiming that the company owes them "thousands of dollars" in revenue for their Windows Mobile apps (applications). Even those producers who made changes to their account to qualify for quick payment were said to be denied their rightful earnings.

Faulty Payment System to Blame

The deferred payment system that Microsoft currently has in place is believed to be the problem. Rather than pay at the end of the month regardless of sales volume, the company only pays developers once they cross the $200 threshold.

While this type of payment system is standard for many online affiliate-based systems, it's suggested that Microsoft's payment system is flagging a significant number of developers as not having crossed the payment threshold, even when their revenue shows otherwise. (Source: electronista.com)

The news is potentially devastating to Microsoft, especially since the company had originally positioned Windows Marketplace as a way to stimulate interest in Windows Mobile development and counter the growth of portals like Android Market or the App Store.

No Solutions Ready Just Yet

Windows Marketplace manager Mihir Rao has acknowledged the issue. Rao went on to state that the majority of those awaiting payment have been genuinely deemed ineligible, but those who were unfortunate enough to have encountered the error will have to wait until a solution is available. (Source: macnn.com)

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