Credit Card Transaction Fees
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https://www.npr.org/2023/09/26/1201257895/credit-card-fees-visa-mastercard-retailers
In the USA, it's quite typical that a merchant would pay around 2%~3% as credit card transaction fee to accept a credit card payment from a customer.
What I didn't know (until reading this article) is this:
[Credit card transaction fees] in the U.S. are eight or nine times as high as those in Europe
Link to a related interview (transcript) on NPR with a finance professor talking about the wealth transfer effects of credit card use in the USA:
https://www.npr.org/2023/03/09/1162380399/the-dirty-secret-to-credit-card-rewards
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That is quite interesting. I never really thought about it.
I did read one time that Costco negotiated with Visa to put the processing fee at somewhere around 0.25%.
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That is quite interesting. I never really thought about it.
I did read one time that Costco negotiated with Visa to put the processing fee at somewhere around 0.25%.
@taiwan_girl said in Credit Card Transaction Fees:
That is quite interesting. I never really thought about it.
I did read one time that Costco negotiated with Visa to put the processing fee at somewhere around 0.25%.
They have enough clout to make exclusive deals with one credit network provider at a time (I think it used to be Mastercard a few years ago)
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@taiwan_girl said in Credit Card Transaction Fees:
That is quite interesting. I never really thought about it.
I did read one time that Costco negotiated with Visa to put the processing fee at somewhere around 0.25%.
They have enough clout to make exclusive deals with one credit network provider at a time (I think it used to be Mastercard a few years ago)
@xenon said in Credit Card Transaction Fees:
@taiwan_girl said in Credit Card Transaction Fees:
That is quite interesting. I never really thought about it.
I did read one time that Costco negotiated with Visa to put the processing fee at somewhere around 0.25%.
They have enough clout to make exclusive deals with one credit network provider at a time (I think it used to be Mastercard a few years ago)
In the US, I think that it was American Express.
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https://www.npr.org/2023/09/26/1201257895/credit-card-fees-visa-mastercard-retailers
In the USA, it's quite typical that a merchant would pay around 2%~3% as credit card transaction fee to accept a credit card payment from a customer.
What I didn't know (until reading this article) is this:
[Credit card transaction fees] in the U.S. are eight or nine times as high as those in Europe
Link to a related interview (transcript) on NPR with a finance professor talking about the wealth transfer effects of credit card use in the USA:
https://www.npr.org/2023/03/09/1162380399/the-dirty-secret-to-credit-card-rewards
@Axtremus said in Credit Card Transaction Fees:
Credit card transaction fees] in the U.S. are eight or nine times as high as those in Europe
I think that's not quite accurate.
The fees for Visa or Mastercard are, to my knowledge, in the same ballpark over here.
But we have a separate system of debit cards, often called EC cards or giro card which charge much less. Many stores will only accept those but not Visa/Master.
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@Axtremus said in Credit Card Transaction Fees:
Credit card transaction fees] in the U.S. are eight or nine times as high as those in Europe
I think that's not quite accurate.
The fees for Visa or Mastercard are, to my knowledge, in the same ballpark over here.
But we have a separate system of debit cards, often called EC cards or giro card which charge much less. Many stores will only accept those but not Visa/Master.
@Klaus said in Credit Card Transaction Fees:
@Axtremus said in Credit Card Transaction Fees:
Credit card transaction fees] in the U.S. are eight or nine times as high as those in Europe
I think that's not quite accurate.
The fees for Visa or Mastercard are, to my knowledge, in the same ballpark over here.
But we have a separate system of debit cards, often called EC cards or giro card which charge much less. Many stores will only accept those but not Visa/Master.
I think that US debit cards are the same, correct? Much lower transact fees?
