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While Visa and Mastercard are the big fish in the sea, they do have competition. There is also Discover and American Express. They also charge similar rates, wh
by revnode 6y ago
While Visa and Mastercard are the big fish in the sea, they do have competition. There is also Discover and American Express. They also charge similar rates, which suggests that 3% fee isn't random. Not sure where 4%/5% came from, fees average out to somewhere between 2%-3% for small merchants.
- tempsy 6y agoalmost all processors add a fixed fee on top of the 3% eg 30 cents. if you are a coffee shop or convenience store that is a much higher % of the average purchase price than a merchant that sells something more expensive.
- pb7 6y agoIt's just price stickiness. Same reason why all music streaming platforms charge $10/month and something like $15/month for a family plan.