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I'd love to see a drill down of how exact the credit card scheme works regarding fees. Like who is paid what exactly by whom. Is this somewhere available?
by chinathrow 5y ago
I'd love to see a drill down of how exact the credit card scheme works regarding fees.
Like who is paid what exactly by whom. Is this somewhere available?
- GoblinSlayer 5y agoVisa would lose face if they charged the end user with transaction fees, so the merchant pays it instead. Then the merchant delegates the transaction fee to the user, but thankfully nobody knows about that.
- chinathrow 5y agoI think you left out a few steps who's getting their fat cut (issuer of the card, aquirer, merchang provider etc) but not sure how it exactly goes down.
- GoblinSlayer 5y agoI suppose consumer to merchant payments are optimized and men in the middle can't get much, everything goes to Visa. Card to card transactions are less optimized and issuer might get a cut.
- mrep 5y agopatio11 has articles on it. I would recommend the "How credit cards make money" one: https://news.ycombinator.com/from?site=kalzumeus.com https://news.ycombinator.com/from?site=kalzumeus.com
- chinathrow 5y agoRead that article, there is nothing on that, I would love to see real numbers.