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Even your 2.9% number is probably too high. Perhaps for AmEx or in super-high-risk situations you need to pay that kind of fees, but for regular MC/VISA in deve
by Sesse__ 5y ago
Even your 2.9% number is probably too high. Perhaps for AmEx or in super-high-risk situations you need to pay that kind of fees, but for regular MC/VISA in developed countries, even a medium-sized business can get below 1%. Large companies, like Apple, can almost certainly get it lower than that.
Source: Involved in multiple such deals over the years.
- lotsofpulp 5y agoIt is 2% to 3% in the US due to the copious rewards programs which result in minimum 2% cash back for credit card users.
- Sesse__ 5y agoBut those are paid for by your bank (by charging high interest rates on the percentage of people who don't pay right away), not by MC/VISA.
- lotsofpulp 5y agoThe banks must be getting a piece of that because MC/Visa collect more depending on the rewards tier the card is in (Infinite/Signature/World and whatever other names they have). Also, MC/Visa charge basically nothing for debit cards, and they do not take on any of the chargeback/default risk of credit cards, so I assume the rest of the fees are for the rewards for the most part. Which is why Discover/Amex fees are similar too.
- yywwbbn 5y ago> in developed countries, In the EU it’s legally capped at 0.3% for all transactions (0.2 for debit cards).
- mbesto 5y agoCan back this up. No one at that level of merchant processing is paying the rack rate of what you might see on Stripe. It's usually high 1's, or low 2's.