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Do merchants pay 3% on debit card transactions similiar to credit cards.
by wolco 8y ago
Do merchants pay 3% on debit card transactions similiar to credit cards.
- primitivesuave 8y agoYes - all payment processing networks impose a ~3% fee regardless of the credit/debit nature of the card.
- ceejayoz 8y agoPayment processors like Stripe may fix the rate at something profitable for ease of explanation, but the underlying interchange fees are not the same. They even vary by credit card type (rewards cards have a higher interchange rate than a non-rewards card), and by type of merchant. See the MasterCard rates at https://www.mastercard.us/content/dam/mccom/en-us/documents/merchant-interchange-rates.pdf https://www.mastercard.us/content/dam/mccom/en-us/documents/..., for example.
- lavezzi 8y agoSource please?
- ceejayoz 8y agoNo. They were always lower, and were strictly capped in 2012. https://www.federalreserve.gov/paymentsystems/regii-average-interchange-fee.htm https://www.federalreserve.gov/paymentsystems/regii-average-... > The Board's Regulation II provides that an issuer subject to the interchange fee standard (a covered issuer) may not receive an interchange fee that exceeds 21 cents plus 0.05 percent multiplied by the value of the transaction, plus a 1-cent fraud-prevention adjustment, if eligible.