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> Other companies can't undercut Mastercard's fees because the consumer(the person making the decision of payment type here) doesn't know or care what the fee i
by dustinmoris 6y ago
> Other companies can't undercut Mastercard's fees because the consumer(the person making the decision of payment type here) doesn't know or care what the fee is.
You got the consumer part wrong. The consumer is the merchant, which can decide if they allow Mastercard cards or not. Same as many merchants don't accept Amex. It's because they don't like to pay the Amex fee. Same as many merchants don't accept Apple Pay or Android Pay or why some merchants only allow card payments for purchases of a minimum amount.
Merchants are the consumers and they decide what cards they will accept. Based on what cards they will accept consumers will be picky about which cards they want to have. For those exact reasons I have a VISA credit card as well as an AMEX because I sometimes can't use my AMEX, otherwise I wouldn't even have a VISA CC.
- avianlyric 6y agoVery few merchants have the market power to say no to either Mastercard or Visa. It would prevent to many customers from being able to give them money. Which would then make it pretty tricky for the merchant to make money. Also Apple Pay and Android Pay don’t cost merchants more to implement or use (assuming they have the HW, which any card reader from the past 10 years will have). The card network rules also forbid merchants from not accepting them, but of course rules don’t mean much without enforcement. Finally there is really only one company that can undercut Mastercard, and that’s Visa. It’s only a question of time before Visa bump their fees, there’s no way they’re gonna leave money on the table for long.
- jacquesm 6y agoYou have your terminology completely mixed up.