3 ms·

> I'm curious if you've ever made the same argument for credit cards, debit cards and the like. All of them charge a percentage to the seller too (and many a ti

> I'm curious if you've ever made the same argument for credit cards, debit cards and the like. All of them charge a percentage to the seller too (and many a times it's a fixed fee plus a percentage). I always thought debit was a fixed fee. I just looked up one of the most common processors in Canada and it says the max fee is $0.035 going as low as $0.02 if you fall into a market segment that skews towards less than $20 per transaction. I intentionally pay debit for everything and keep a low fee, low interest credit card with no perks.

xyzzy_plugh 6y ago
Non-credit rails are region specific and usually avoid higher fees typical of credit card rails (often even free). The processor fees for credit card rails exist primarily nowadays to support two things: fraud and perks. With a debit transaction, your fraud protection is usually much, much lower (often non-existent). It's usually equivalent to handing over cash. With a credit card, you can call them up and get the transaction reversed pretty trivially.