The dream of crypto was supposed to make this near zero
Visa and Mastercard agree to lower average credit card interchange fee below 1%
181–190 of 304 posts
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#182Earlier quoted context omitted.
> I'm weary of government intervention in capping prices, but I'm not sure what's the alternative here Instead of capping prices, you could simply require any fees to be paid by the cardholder. Combine that with a standard for payment processing so that lots of companies could compete for payment processing and fees would drop really fast. If someone is using a POS terminal like Toast or Square, it should be trivial…
> Instead of capping prices, you could simply require any fees to be paid by the cardholder. This already happens in Australia. The price is the price, until you go to pay and if the shopkeeper sees you pull out a credit card, would adjust the total to include a 1.5% surcharge (Visa or Mastercard, and you'll likely be turned away if you pull out a different card like Amex). The problem with this is that especially si…
The excessive fees have been illegal for a few years now. They can only charge the actual cost incurred. Worth a lodging a complaint about them:
https://www.accc.gov.au/consumers/pricing/card-surcharges
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#183Earlier quoted context omitted.
You can show the full price and the breakdown at the same time. That’s how it works eg in the Airbnb app: I see the price host charges and the fee I pay to Airbnb. The taxi apps show their fee as well.
That doesn't work in a brick and mortar store where they wouldn't know your card's fee until you go to pay. Also doesn't work online if you're not signed in, or if it's the first time you've visited that store and you haven't given them a card number yet.
but they would know how much tax the customer would have to pay.
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#184Earlier quoted context omitted.
> Instead of capping prices, you could simply require any fees to be paid by the cardholder. This has begun. Many restaurants near me have a credit card fee, as does at least one car repair place. No fee of paying with cash/debit.
That is usually against the card-processing agreement. If you want to have fun, you can report them to Visa/MC and watch that go away within a few days.
That is largely not the case at all. In fact charging such is explicitly legal but also regulated:
https://www.accc.gov.au/consumers/pricing/card-surcharges
The exception to that is American Express directly issued cards and American Express merchant contracts have had such terms at least in the past. Not sure if they still do.
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#185Earlier quoted context omitted.
In Denmark, the additional fees charged for foreign (non-EU I think) or corporate cards are passed on to the customer. The price says 100DKK, but they pay 101.50DKK or whatever it is.
That's probably not the card fees, but the currency exchange.
No, that’s the card fee. At point of sale you usually choose which side does the currency exchange (you choose on the terminal if you want to pay in home or local currency)
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#186Visa and Mastercard don't keep much of interchange at all and never have. The vast majority is paid to issuing banks to pay for loan origination, fraud and, most significantly, to return in the form of cash back or points. These networks charge 0.2% for debit and 0.3% for credit in Europe as per regulation, you just don't get rewards there. Kinda sounds like they're just going to squeeze issuing banks. Cash back and…
These numbers are not public, but the grapevine is that visa/mastercard keeps about a third of all interchange. Credit card rewards are a regressive tax on the poor -- literally, only those like us here on HN with good credit can get 2% cashback on everything, the rest who pay with debit/cash effectively subsidise our 2% discount. I enjoy my 2% cashback, but really would rather see a world where, like the EU, interch…
They charge more yes, but make of the credit cards in the US also provide a lot more: travel insurance, Trip interruption insurance, purchase protection, extended warranty, etc.
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#187Visa and Mastercard don't keep much of interchange at all and never have. The vast majority is paid to issuing banks to pay for loan origination, fraud and, most significantly, to return in the form of cash back or points. These networks charge 0.2% for debit and 0.3% for credit in Europe as per regulation, you just don't get rewards there. Kinda sounds like they're just going to squeeze issuing banks. Cash back and…
Why should there even be something like cash back or points programs? These programs are taking money from the merchant and giving it to the end-consumer, while the middle-men keep a cut. I believe a world without these programs (or as you said “watered-down” versions) is more fair for the merchant and others shoppers not using such cards. Especially if the merchant is not allowed to charge the end-consumer with this…
They would exist without the interchange fees. The money is coming from revolvers, not the merchants or interchange
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#188Visa and Mastercard don't keep much of interchange at all and never have. The vast majority is paid to issuing banks to pay for loan origination, fraud and, most significantly, to return in the form of cash back or points. These networks charge 0.2% for debit and 0.3% for credit in Europe as per regulation, you just don't get rewards there. Kinda sounds like they're just going to squeeze issuing banks. Cash back and…
These numbers are not public, but the grapevine is that visa/mastercard keeps about a third of all interchange. Credit card rewards are a regressive tax on the poor -- literally, only those like us here on HN with good credit can get 2% cashback on everything, the rest who pay with debit/cash effectively subsidise our 2% discount. I enjoy my 2% cashback, but really would rather see a world where, like the EU, interch…
What is bps?
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#189Earlier quoted context omitted.
These numbers are not public, but the grapevine is that visa/mastercard keeps about a third of all interchange. Credit card rewards are a regressive tax on the poor -- literally, only those like us here on HN with good credit can get 2% cashback on everything, the rest who pay with debit/cash effectively subsidise our 2% discount. I enjoy my 2% cashback, but really would rather see a world where, like the EU, interch…
They charge more yes, but make of the credit cards in the US also provide a lot more: travel insurance, Trip interruption insurance, purchase protection, extended warranty, etc.
For people who can obtain such cards and pay them off, yes.
Re: Visa and Mastercard agree to lower average credit card interchange fee below 1%
#190Earlier quoted context omitted.
Amex doesn't count - they run their own system end to end and charge retailers stupidly high fees. That's why most retailers don't take them. As for rewards on MC and Visa, which card are you on? In my experience, either the rewards are very small, or they are for specific retailers only, where the Bank has done a deal directly with the merchant. Occasionally they are a loss leader for the bank, working on the princi…
Amex is a different model, their customers are card holders and not businesses. In their view of the world businesses must pay to access their customers. It will be interesting to see Google or Apple's long term play in this market, I would love it if they started providing banking services. Just so it interrupts the currently market where the middle men provide little to no real value to the general public.
Amex has credit cards with no annual fees, they have the same incentives as other networks and issuers.