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Maybe you simply intended your comment as hyperbole but if not: - It's not a 1% tax worldwide. For example most of Europe uses debit cards instead of credit an
by Youden 5y ago
Maybe you simply intended your comment as hyperbole but if not:
- It's not a 1% tax worldwide. For example most of Europe uses debit cards instead of credit and the fees are regulated to be much lower than 1%. This also demonstrates that Visa's power is not unchecked.
- Visa may be listed on American exchanges but foreign nationals can buy shares no problems.
On the percentage, I was curious and had a look at Visa's financials [0]. On payment volume of $10.4T, they reported revenue of $24.1B, so they get about 0.2% overall.
[0]: https://annualreport.visa.com/financials/default.aspx https://annualreport.visa.com/financials/default.aspx
- ricardobeat 5y agoI'm curious how the numbers look to get to that result. The lowest rate I've heard of was ~0.7%.
- MagnumOpus 5y agoEU maximum for debit cards is 0.2% and for debit cards is 0.3%. Major clients like Amazon, Tesco or Aldi have leverage and probably pay half that... https://www.linklaters.com/en/insights/blogs/fintechlinks/2020/july/eu-retains-interchange-fee-cap-on-card-payments-for-now https://www.linklaters.com/en/insights/blogs/fintechlinks/20...
- ricardobeat 5y agoIsnt the majority of VISA transactions on credit cards, not debit? Those have rates in the 1-3% range, so even with the lower debit rates everything should average to more than 0.2%.
- rswail 5y agoThe end merchant pays 1-3%, then there are a whole bunch of middle-people that take a cut. The merchant acquirer (eg Stripe), the merchant bank, the issuer bank, the tokenization service (if using Apple/Google/Samsung Pay), there's a long list of people taking part of that fee. Visa as the network operator takes some of that cut as well, depending on the type of transaction, the type of card (debit vs credit vs "premium" credit). It's much more complicated than Visa getting all of the merchant fee.
- Youden 5y agoI don't know about Visa specifically but debit cards are about twice as popular than credit in the US [0]. As a non-American, though I don't have a source off the top of my head, I think that outside the US credit cards are even rarer. [0]: https://www.creditcards.com/credit-card-news/debit-card-statistics-1276/ https://www.creditcards.com/credit-card-news/debit-card-stat...
- moeadham 5y agoYeah, visa and it’s partners collect the 1% tax. Don’t forget the cut squiring banks take.