181–190 of 314 posts
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They charge you 23%? I thought in the EU the maximum interchange fee for consumer credit cards is capped at 0.3% of the transaction value.
Plus fixed fees. I don't want to put responsability on anyone, I don't know who takes what in the chain, but I see the fees in practice. I took the cheapest PSP I could find in Europe... Stripe is way more expensive, taking 25 cents of fixed fee !
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It boggles my mind that the government has privatized currency to these people. Crazy-person-but-actually-really practical-idea: Nationalize one if these networks. Maybe Discover. The US government should provide us digital currency. The simplest way is to force the current systems to do that. All that rent they collect in terms of transactions fees shouldn't be profit for a private business but fees of the governmen…
>It boggles my mind that the government has privatized currency to these people. That's the banks (lenders), not the payment networks. >Crazy-person-but-actually-really practical-idea: Nationalize one if these networks. Maybe Discover. The central planners want to. It's called FedNow.
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Debit cards aren't that, in practice, because as you say they typically get the same 3% fee whenever I've asked. Toast and other point of sale networks just charge it based on the network and not the card type. But even so, I still prefer the credit card instrument, used as a "charge card". For those that don't know, a "charge card" is common with businesses and is expected to be paid off every month. But it helps wi…
Debit cards are not subject to surcharging, and any merchant doing so is violating Visa/Mastercard regulations. (And possibly state law in several places -- Colorado where I live caps surcharge at the lesser of 2% or the cost of payment processing.)
Debit cards issued by smaller community banks or credit unions are exempt from the cap and carry higher interchange rates (often 1.0%–1.65% + $0.10).
All merchants should either do Surcharging or Cash Discount.
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> I used to think "I should be nice to merchants" and pay everything in cash. That is only "nicer" as it allows to evade taxes. (Which some may consider nice) But cost for cash is comparable to card payment if looked at seriously * You need working time to count it * You need working time to bring to bank (or request pickup, which costs) * The bank will charge the deposit * The bank will charge for the change you nee…
I own a business that does about $10-$15k mo USD in cash and card transactions and most of what you've said here doesn't ring true to me. Unless you're handling huge amounts of cash, cards are WAY more expensive to deal with IME, especially because the fees scale as a percentage of revenue, so you can't just increase sales and lower your margins. I bought a cheap cash and coin counter for about $400 on Amazon, which…
I play the credit card "game" because I hate feeling like I'm leaving money on the table, but I really wish I didn't have to. Some degrees of fees make sense, to run the network, and handle fraud, but it's ridiculous that people have this sense that shopping should somehow fund your vacation. Where I am it's increasingly common to see credit card fees when checking out. I get it, because merchants are being charged 3…
There is, it's called debit cards, but Stripe et al. "simplified" pricing by charging a percentage regardless of card type instead of the traditional interchange-plus pricing. Merchant banks "used to" make money by tacking on fixed fees, i.e. a set-up fee, terminal fee, monthly fee, etc, but then Stripe came along and provided (1) a better dev experience, (2) better onboarding, and (3) simplified pricing.
Stripe don't do handle their own payment, they just wrap someone else's API, and pay them in percentages and dollars per API calls(idk about the ones behind Stripe, but I think I saw somewhere that those middlemen often charge both? Egregious, but they're literally old boys money men and they have lots of leverages against you).
What are truly different to credit/debit card systems are things like PayPal, Apple/Google and such gift cards with scratch areas, and Chinese QR payment apps. Those are the ones that don't (always) go through the CC ecosystem.
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As someone who has been hit with fraud on a debit card and a credit card, the process to recover money from fraud on a credit card is so much easier and more hassle-free than a debit card. The big difference is that with a debit card, it's your money that is hit by fraud. The debit card is basically just a proxy. You have to go file a police report. You have to hope the bank will give you the money back. When the cre…
> The big difference is that with a debit card, it's your money that is hit by fraud. I kind of disagree. I think what's happened is the bank would prefer you to believe that . Imagine I kept my money at the bank, and deposited $10000 with the teller. Immediately afterward a robber follows in and steals that $10000 from the teller. Does the bank say "oh no Mr. TheChao! A robber stole your $10000!". I mean, no? The ba…
But in the case of debit card, the card ties the money to your account. It is actually that.
It's as if someone would steal from a personal safe at the bank.
Now they do all kinds of accounting tricks to pretend that they have thin profit margins because they split up every part of the business into hundreds of 1-3% chunks of the profit. To sidestep regulation that already barely exists.
> The issuing bank keeps 2% Is this why the best cash back credit cards give 2%?
https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-in...
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I own a business that does about $10-$15k mo USD in cash and card transactions and most of what you've said here doesn't ring true to me. Unless you're handling huge amounts of cash, cards are WAY more expensive to deal with IME, especially because the fees scale as a percentage of revenue, so you can't just increase sales and lower your margins. I bought a cheap cash and coin counter for about $400 on Amazon, which…
Many businesses, including restaurants, in California are going cashless and it makes my weekly budgeting harder (cash in wallet is my budget).
I love being able to transact without the payment processors knowing anything about my customers, and they appreciate it, too. My cash payers are usually very grateful.