3 ms·
The average card present transaction charge in Australia for scheme cards is less than 1.5%, even for small turnover merchants. With higher turnover businesses
by kondro 8y ago
The average card present transaction charge in Australia for scheme cards is less than 1.5%, even for small turnover merchants. With higher turnover businesses getting to about 1%.
Banks don’t need to charge 3% to deal with fraud. Merchant agreements effectively make it their responsibility to bear the brunt of any chargebacks anyway.
- rossdavidh 8y agoFor sure the banks make good money, but the question is whether or not a company that is new at it, would be able to make a profit on 3%. I submit that it is a difficult task, and a new company would struggle. Not saying it's impossible, just that it's hard.
- tracker1 8y agoIt's more that U.S. companies have various rewards programs (travel points to cash back). One of my cards gets 2% back on nearly everything, and 5% back on their quarterly promotions. I tend to use it for most of may day to day spending, and try to pay it off every month. That's why the merchant fees are so high... much less an extent to fraud handling.