I wonder if Apple is taking more than a 50% haircut on this post year one. Credit card fees come out of their share and those could very well account for the b

I wonder if Apple is taking more than a 50% haircut on this post year one. Credit card fees come out of their share and those could very well account for the bulk of the 15%. Even if Apple pays nothing in payment processor markup, there is a fixed minimum "interchange" cost that everyone has to pay (even Walmart). For "ecommerce" it's:[1] Credit: $0.10 + 1.8-2.4% Debit: $0.21 + 0.05% Those 10-21 cent minimums make a big dent in smaller transactions. For a monthly recurring charge of $1.99, already 6% of that goes to credit card interchange. That leaves a 9% gross margin for Apple (4% if debit). At $0.99, Apple's margin drops to 3% on credit, and they lose money on a debit card. Now, there is a "small ticket" interchange category that one would hope these transactions would qualify for. That's just $0.04 + 1.65%. But it says it requires a swipe, so I'm not sure. From a fraud risk standpoint Apple Pay should be treated better than a swipe, but I'm not sure if the rules have caught up yet. [1] https://usa.visa.com/dam/VCOM/download/merchants/Visa-USA-Interchange-Reimbursement-Fees-2015-April-18.pdf https://usa.visa.com/dam/VCOM/download/merchants/Visa-USA-In...