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In the USA, yes most folks pay around 3%, but it gets lower when the card is physically present, aka swiped. Now the EU has limited the Interchange Fee paid by
by consumer451 8y ago
In the USA, yes most folks pay around 3%, but it gets lower when the card is physically present, aka swiped.
Now the EU has limited the Interchange Fee paid by EU merchants by an order of magnitude:
>For card payments carried out by the cardholder in a shop ("Card Present Transactions"):
> 0.2% of the value of the transaction for debit cards;
> 0.3% of the value of the transaction for credit cards:
>For online payments ("Card Not Present Transactions"):
> 1.15% of the value of the transaction for debit cards;
> 1.50% of the value of the transaction for credit cards.
Source: http://europa.eu/rapid/press-release_IP-18-6655_en.htm http://europa.eu/rapid/press-release_IP-18-6655_en.htm
- nmstoker 8y agoAnd yet there are cards that offer 1 or 2% cashback in the UK - are these simply funded by the banks as a way to tempt users to sign up?
- tyre 8y agoif they're banking on a large percentage being online transactions, then the 1% could be covered or exceeded. Additionally, if they even break even on `transaction fees - cash back` then they make money on interest whenever someone can't/doesn't pay in full every month
- Trisell 8y agoMost people miss the point that for a rewards card to pay you. You have to pay off the balance every month. And missing that by even a single month at 10%-21% interest that you get charged. You are more then likely to loose money even with the rewards.