3 ms·

Do companies the size of Apple really pay 2%? I'd be surprised if they don't have special, cheaper rates that they contractually agreed upon.

• dangrossman 6y ago
  They probably pay some fixed markup over interchange, e.g. "cost plus" pricing, which means it'll be over 2% for some types of credit cards still. Even Apple is not going to get their processor to take a loss on charging cards. Top rewards cards pay out 2% or more as cash back, so the cost to charge that card is going to be over 2%. Charging a basic checking account debit card, on the other hand, can be as low as 0.05% plus $0.21. For an average card mix, their processing cost averaged over every transaction is probably under 2% however.
  • Retric 6y ago
    Even 0.05% + $0.21 >= 2% on any transaction of 14$ or less. I am not sure of the mix of transactions their dealing with but sub 2% seems unlikely, when freemium games average transaction is ~14$.
    • martin_bech 6y ago
      US Creditcards are crazy... A completely normal creditcard fee in Denmark is $0.1 + 0.19% Taken from this official slide https://images.ctfassets.net/r8xjjnzwpfxs/3lLnB85SDDj5FTDmzYsgXF/bad07002e77d047a685b4a707923b96d/Dankort_Prisliste___vrig-handel_01-02-2018.pdf https://images.ctfassets.net/r8xjjnzwpfxs/3lLnB85SDDj5FTDmzY...
      • cinntaile 6y ago
        I thought the main reason for this is because there are a lot of lucrative cashback regimes in the US? I assume Denmark doesn't have those.