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The card issuer doesn’t pay the merchant for a while, so it’s the merchant who is essentially paying the actual debt interest for a few months. Ask the owner o
by drfuchs 5y ago
The card issuer doesn’t pay the merchant for a while, so it’s the merchant who is essentially paying the actual debt interest for a few months. Ask the owner of any small business where you use your card how long it takes for them to actually see the money.
- adrr 5y agoSettlement is a couple of days. If merchant is getting their money later, the processor is holding the cash. I’d guess to manage risk from chargebacks. Merchants pay interest with the increased interchange. This is why debit cards have reduced interchange. ~2% vs 0.05%
- dangrossman 5y ago2-3 business days between charging someone's card, and the settlement including that charge hitting my business checking account. Not months.
- drfuchs 5y agoEvidently, my dry-cleaner lied to me.
- mjh2539 5y agoThey were probably just trying to get you to pay with cash/debit card.