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> Everything has a cost, and someone has to pay it. In Europe, the interchange fee (what the retailer's bank pays to the card company) is limited to 0.3% for c
by lorenzhs 10y ago
> Everything has a cost, and someone has to pay it.
In Europe, the interchange fee (what the retailer's bank pays to the card company) is limited to 0.3% for credit cards and 0.2% for debit cards. This came into effect sometime last year.
- snuxoll 10y agoAre you sure that's not 3% and 2%? When you consider the banks are on the hook for fradulent charges the interchange fee is their buffer to cover this (plus the myriad reward programs most banks offer).
- germanier 10y agoYes, those numbers are correct, see e.g. http://ec.europa.eu/competition/sectors/financial_services/enforcement_en.html http://ec.europa.eu/competition/sectors/financial_services/e... and http://ec.europa.eu/competition/sectors/financial_services/payments_en.html http://ec.europa.eu/competition/sectors/financial_services/p... for an overview. Reward programs always have been a bit less pronounced here in Europe and mostly have been reduced after the regulation of interchange fees.
- 1_2__3 10y agoWow, it's almost as if capping the fees they can charge provides an incentive for the banks to aggressively pursue anti-fraud technologies that benefit everyone. Naw, never mind this is the USA. Free market is all that matters.