4 ms·
8%? What? That can't be true.
by mnx 8y ago
8%? What? That can't be true.
- kuschku 8y agoVisa and MasterCard hover around 2-3%, but AMEX often goes up to 7-8% for certain goods, yes. Credit cards are a massive cost to society and should be replaced.
- therealmarv 8y agoin USA? I don't believe. In EU the costs on debit cards for the merchant is about 1-1.5% and on credit cards a little higher, 1-2%. This are the real numbers. If you pay more you are getting screwed.
- mnx 8y agoOk, so AMEX is unreasonably expensive. That 2-3% is exactly what I expect - maybe even a little lower, esp. for bigger merchants. Why would anybody accept such an expensive card?
- kuschku 8y agoThat's exactly the problem. Why would any merchant pay 10x, even 50x more for a card than they pay for cash? If each customer had to pay extra depending on their method of payment — 0.2% for cash, 0.125% for EC, 2% for MasterCard, 7% for VISA — no one would use credit cards anymore. Especially for big purchases. Reality is, as long as merchants can not give cash-only discounts, CC owners leech off of the cash payers.
- Nasrudith 8y agoThey can already actually. It was ruled legal to pass on the expenses durectly/discount cash transactions. However they usually don't do so for several reasons. I have only seen a few gas stations do so and they are low margin businesses. One is logistical and consumer expectations of maintaining two price lists Another is that credit cards get them more sales and spare them from accidental structuring horror stories. A third reason is security - credit cards leave less cash in the register for a robber to steal and harder to steal from the tills.
- lmm 8y agoWhy would the customers use it? Because they get cashback/airmiles/... . Why would merchants accept it? Because high-value customers demand it (Amex is very deliberately positioned as a premium card for high spenders).