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The differential isn't actually 10 times. The part Visa/MC keeps in the US is more like 0.05% to 0.65%, not 2-3%. In the US, debit card interchange fees are ca
by dangrossman 10y ago
The differential isn't actually 10 times. The part Visa/MC keeps in the US is more like 0.05% to 0.65%, not 2-3%.
In the US, debit card interchange fees are capped at 0.05% + $0.22, since 2010. That was in the Durbin amendment to the Dodd-Frank Wall Street Reform Act.
Credit card interchange runs up to about 2.9%, but that's only on the cards with the most benefits: those that pay the largest percentage back to the cardholder. That's up to 2% back in cash, reward points or miles... plus 90 day accidental damage protection on all purchases, 1 year extension on all product warranties, travel insurance, concierge service, etc.
Interchange fees for the credit cards without rewards programs start at 0.65%.
- mysterypie 10y ago> Credit card interchange runs up to about 2.9%, but that's only on the cards with the most benefits Repeating what I asked in another comment, it's important to know what percentage of cards have those benefits. If most credit cards in the U.S. and Canada have cash back, miles, or rewards, then it follows that merchants pay 2-3% on most transactions. In my experience in the U.S. and Canada, almost everyone seems to use a cash-back or reward-type credit card.