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Yes but these fees are huge with larger loans. Why are the fees percent based rather then flat rate? The banks giving out these loans are not taking on any risk
by solarhoma 6y ago
Yes but these fees are huge with larger loans. Why are the fees percent based rather then flat rate? The banks giving out these loans are not taking on any risk with the loan. So how are they getting away with large fees associated with the loans?
- eezurr 6y agoBecause successful fraud takes everything.
- ric2b 6y agoNot from the bank, they just roll back the transaction. Some merchant might end up on the hook, though.
- burmer 6y agoIf the money is to mitigate risk, then why can't the fee be (mostly) refundable? The bank takes on the risk of processing some enormous transaction and takes a percentages of the transaction as insurance in case of fraud. Then after a period of time with no issues, the money flows back, less some nominal amount for the actual work involved processing the transaction.