The ability to redeem Linden dollars for real money on the LindeX is an incredible facet of Second Life. We believe that creators should be able to profit from their creativity, and we’re proud of the success that Second Life creators have achieved. Last year, users redeemed $60 million (USD) from the Second Life economy, and for many, the virtual world is a significant source of real income.
Enabling users around the world to buy and sell Linden Dollars for real currency is no small feat. This involves Linden Lab making sure that everything is compliant with applicable laws and regulations, as well as preventing fraud and money laundering.
We’ve been investing in improvements to these processes, and today we’re announcing improved speeds for credit processing, as well as some fee adjustments.
Faster Credit Processing
We’re happy to announce that we will significantly improve how quickly we’re able to process a majority of credit requests.
Based on current data, we estimate that the upgrades we’ve made will allow approximately 75% of process credit requests to be completed within 2 business days.
For a minority of requests, the process may still take 5 business days. Because we’re dealing with sending real money to users around the world, we may require additional information and perform other processes that could impact the time needed. A good rule of thumb is that the better we know you as a customer, the more likely it is we’ll be able to quickly process your credit requests.
Upcoming Changes to Fees
In addition to taking time, processing credit and paying real money to users’ PayPal and Skrill accounts incurs costs to Linden Lab. Each transaction actually costs us more than the $1 (USD) fee we have been charging. To address that and in light of the significant investments we’ve made to improve the related systems and processes, we will be making some adjustments to the fee structure, beginning next month.
As of April 5, 2016, instead of charging a flat fee of $1 (USD) per transaction, we will charge a fee of 1.5% of the transaction value, with a minimum fee of $3 (USD) and a maximum of $15 (USD). Additionally, the fee for purchasing L$ on the LindeX will increase 10¢, from $0.30 (USD) to $0.40 (USD) per transaction.
We hope that you’ll enjoy the improved speed of credit processing and understand that these upcoming fee updates help to support the complex work involved in enabling Second Life users to buy and sell Linden Dollars for real money at a massive scale, all while keeping the system reliable, safe, compliant with regulations - and now faster.