4 ms·
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
by 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 agoEven 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 5y agoUS 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 5y agoI 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.