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> > Again, issuer costs have no bearing on Merchant fees nor the profitability of processors. > If this is true, then where does the cash back come from if not
by AdieuToLogic 7y ago
> > Again, issuer costs have no bearing on Merchant fees nor the profitability of processors.
> If this is true, then where does the cash back come from if not as a cut of the merchant fees?
Interest rates + membership fees charged by issuers to Card Holders.
- rstupek 7y agoI don't think that is correct. Merchants are charged different rates based on the cash back rates of a given card. Merchants have to eat most of that cash back being given to the card holders.