That’s the tricky part with interest rates. They have to make sense in gross dollar terms as well as percentages. That’s why merchant credit card fees are pain

That’s the tricky part with interest rates. They have to make sense in gross dollar terms as well as percentages. That’s why merchant credit card fees are painful for small shops. Ie 3% + 35 cents isn’t so much until your average ticket size is $5 and all of the sudden 10% of your revenue is going to intermediary. There’s fixed cost associated with moving cash around so that 20% return is likely negative under current infrastructure.