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Are 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
by snuxoll 10y ago
Are 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.