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Those are the rates paid by the processor to the bank. They're not the rates paid by the business to the processor. Per VISA's website: "Merchants do not pay
by timr 8y ago
Those are the rates paid by the processor to the bank. They're not the rates paid by the business to the processor.
Per VISA's website:
"Merchants do not pay interchange reimbursement fees—merchants negotiate and pay a “merchant discount” to their financial institution that is typically calculated as a percentage per transaction."
https://usa.visa.com/support/small-business/regulations-fees.html https://usa.visa.com/support/small-business/regulations-fees...
It seems logical that VISA doesn't want merchants to be able to determine per-card costs, since this keeps merchants from trying to optimize their fees.
- function_seven 8y agoVisa might not want that, but the merchant provider I linked to offers it as "Interchange+ Pricing" > Our cost-plus pricing helps you save. Thet's Helcim's model. They charge whatever their own cost is, plus a margin. And you can bet that any merchant as large as Kroger won't accept a flat rate or fee for their transactions. They want to pay as little as possible.