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Interchange fees dont go directly to bank providing the card afaik. Visa/Mastercard network take a cut, I recall reading 0.25% on CC in Europe? Then the merchan

Interchange fees dont go directly to bank providing the card afaik. Visa/Mastercard network take a cut, I recall reading 0.25% on CC in Europe? Then the merchant bank takes a cut (merchant services and shouldering last man standing chargeback/fraud risks - hence why sometimes merchants pay 4%+) and then hmm anyone else?? I doubt any more than 1% is remitted to the bank providing the card given I know some physical retailer (small) paying ~1.4% in UK. In the UK they also market you for $. They ain't sending you that exclusive "loyal VIP customer" introduction/bonus offer for virgin wine, or some fitness club, or breakdown out the goodness of their heart..Which is probably another nice earner on top of everything else

nommm-nommm 10y ago
>anyone else?? Credit card partners! So if you get your favorite sports team's credit card, they get a cut. http://www.doctorofcredit.com/everything-you-ever-wanted-to-know-about-credit-card-partners-how-much-they-make-more/ http://www.doctorofcredit.com/everything-you-ever-wanted-to-... There's even a Linux credit card (not kidding) https://www.linuxfoundation.org/offerings/linux-credit-card https://www.linuxfoundation.org/offerings/linux-credit-card
Symbiote 10y ago
The European rules to limit transaction fees seem to have removed almost all cashback cards from the UK. There are still some [1] with introductory cashback, or very limited cashback, but nothing like the 2-3% ones that used to exist. I'm not sorry to see them go -- charging all customers an extra 1.5% (or whatever) in order to give a savvy few cashback isn't fair. [1] http://www.moneysavingexpert.com/credit-cards/cashback-credit-cards#bestbuys http://www.moneysavingexpert.com/credit-cards/cashback-credi...