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It's because there are white label credit cards that are extremely easy to setup if you're a business and they're so profitable. Not only does the store get a
by ishjoh 5y ago
It's because there are white label credit cards that are extremely easy to setup if you're a business and they're so profitable. Not only does the store get a sale upfront which a customer might not have been able to afford without it, they get additional revenue when folks are slow to repay their bill.
- gowld 5y agoThe store gets money when customer pays the bank interest?
- jasode 5y agoYes, the retailer gets a portion of the interest payment. Example story mentioning it: https://www.nytimes.com/2017/05/11/business/dealbook/retailer-credit-cards-macys-losses.html https://www.nytimes.com/2017/05/11/business/dealbook/retaile... https://archive.md/kuW2K https://archive.md/kuW2K
- morpheuskafka 5y agoDo you know if these first part transactions also bypass Visa/MC and interchange? It seems like they should have it so the affiliated merchant can just send the charges over to the issuer directly and bypass everyone else.