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It’s a total tax on the entire ecosystem. Every merchant that chooses to accept credit cards has to build 2-3% into their margins to cover the interchange fees.
by brd529 7y ago
It’s a total tax on the entire ecosystem. Every merchant that chooses to accept credit cards has to build 2-3% into their margins to cover the interchange fees. It’s often against their agreement with visa/mc to charge the fees for credit transactions only and so they build them into the base cost.
- the_duke 7y agoAs a side note, the situation is a bit better in Europe, where considerable regulation was introduced recently. With mixed but positive results. Interchange fees were capped to 0.3% for credit cards. This is a nice summary if you are interested: https://www.europeanpaymentscouncil.eu/news-insights/insight/18-months-impact-interchange-fee-regulation-european-union-cards-market https://www.europeanpaymentscouncil.eu/news-insights/insight...
- jayd16 7y agoCrypto isn't free either.