4 ms·
> The “real” thing to the merchant is the mapping from card to type. This is exactly what I'm trying to understand: how specific/granular the "card types" can
by mehrdadn 8y ago
> The “real” thing to the merchant is the mapping from card to type.
This is exactly what I'm trying to understand: how specific/granular the "card types" can be. Maybe another way to ask it is the following: is there a pre-set list of "card types" with pre-set merchant fees provided by Visa/MC/etc. that issuers must choose from (whether Rewards Traditional vs. Signature, or something else) and that merchants can expect, or do issuers get to come up with their own distinct "card types" that result in different fees for the merchant?
- JumpCrisscross 8y ago> is there a pre-set list of "card types" with pre-set merchant fees provided by Visa/MC/etc. that issuers must choose from (whether Rewards Traditional vs. Signature, or something else) and that merchants can expect, or do issuers get to come up with their own distinct "card types" that result in different fees for the merchant? The latter. There are presets for smaller institutions. But these fees and labels are negotiated and renegotiated between big banks and payment networks. If JPMorgan wants to call their cards with a prime last two numbers KOOPA and pay Visa 1¢ extra for all KOOPA swipes, that would be valid. Nobody does this. Because marketing terms--at least initially--tend to correlate to the perks the issuer is giving cardholders, and thus tend to correlate with the issuer's costs. But that's all.
- mehrdadn 8y agoI see, interesting. Thank you!