51–60 of 389 posts
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It's not subsidized by people who make interest payments?
Oh, it is. Very much so.
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> The consumer using Visa SuperRewardsPlatinum probably doesn't know that it's costing the retailer more than other cards when they use it. You mean the merchant pays a higher fee when you use one Visa card vs. another Visa card? Or you mean compared to Mastercard etc.?
I seriously doubt the retailer pays different fees depending on th card. That sounds bizarre.
These kinds of problems (swipe fees, etc) is where I believe cryptocurrencies shine. Having a fee payment which is reasonable and fast confirmation times would solve this problem immediately removing the need for third parties.
I hate credit card fees as much as the next guy, but to be fair my credit card was the only way I could pay for things in Asia since I just lived there for 6 months. If I had used cash, the only ATM near me stole my friends debit card, and multiple people I know were robbed and pick-pocketed. My credit card insulated me from those risks, which I was fine paying an extra 1% for. Now that I’m back in America the risk i…
I like my rewards Visa more than I like Kroger. Good luck with that ban, guys.
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It's not subsidized by people who make interest payments?
Not really. Banks really dislike creating systems where it is possible for them to lose money. And by law, if you pay your credit card statement in full on or before the due date, you get charged zero interest. The interchange fees charged to merchants roughly covers rewards. It's why Visa et al charge higher fees to merchants for processing higher-tier rewards cards. Interchange fees don't cover all the other overhe…
eg, free consumer checking accounts have been heavily subsidized by interchange fees for years.
There are more dollars in interchange fees collected in the US every year than there are dollars of fraudulent transactions.
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Correct. The fee will vary within a network based on all sorts of things. There are low-rate carve outs for low-margin products (eg gasoline), discounts for "card-in-hand" transactions, and higher fees for premium cards. https://www.helcim.com/us/visa-interchange-rates/ https://usa.visa.com/dam/VCOM/global/support-legal/documents...
Ohh.. so it's saying Visa CPS Retail vs. Visa Rewards Traditional vs. Visa Rewards Signature vs. etc. are different. Interesting, thanks, I didn't know that. But if I'm buying two of the same product (obviously -- I'm not talking about two gas vs. groceries here) with two different cards, both of which are from the same network and the same "kind" (by which I mean the categorizations listed above, like two that are b…
1) You buy a product with your Visa debit card and enter your pin
2) You buy the same product, same card, but don't enter your pin
3) You buy the same product, same card, but your card won't swipe so the cashier manually enters your card number
Each of these scenarios will likely result in different fees to the merchant.
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Unless a retailer doesn't accept any cash, the marginal cost of accepting another cash transaction is low.
I think you would be surprised at how little cash many places need to operate with in the presence of credit cards. Consider a front desk at a hotel. Thousands of dollars a day in transactions occur via card, which would warrant frequent drops into an expensive safe if they happened with cash. With cards they pretty much only hold a trivial amount to deal with sundries that isn't worth protecting beyond a simple enve…
A business that has any type of daily cash accounting is still going to need to balance the register at the end of the day, reestablish change to open with, have arrangements for transport, &c. Bad employees can still pocket a tenner on occasion.
Sure, some smaller places with barely any cash probably just lock the drawer and call it a night.
I can't find the figures now, but estimates of cost of cash handling is far far lower than the 2-3% of swipe fees.
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You can pay your federal income taxes via credit card for 1.87%
Wait, seriously? I only ever saw a bank account option. I'd totally do this.