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Visa has managed to get banks in Switzerland to give up direct debit cards in favor of visa debit cards. The cards have very high fees for vendors vs the almost
by sschueller 5y ago
Visa has managed to get banks in Switzerland to give up direct debit cards in favor of visa debit cards. The cards have very high fees for vendors vs the almost non existing fees previously. Worst part is that if a business wants to accept regular visa credit cards that have "normal" fees they have to accept these new debit cards. The consumer has no clue and just pays with what is easiest which ends up being the visa debit cards.
- sph 5y agoI don’t get it. I have a UK bank and my debit card has the Visa brand. When I buy something for £50, I get billed £50. Same with my Visa _credit_ card, though to be fair I never signed up to any cashback service. Am I missing something?
- DenseComet 5y agoYou get billed the same amount, but the transaction fees that a merchant pays on a transaction varies with the card type, brand, tier, and various other factors.
- ransom1538 5y agoYes. The consumer just tries to max the cashback rewards (some cards are 2% on all transactions). Visa tries to max merchant coverage - so all the merchant customers are using visa. The merchant (should) try to minimize card usage for tax purposes.
- RicCo386 5y agoFee is usually paid by business, so you pay £50, but the business got just £49. Most business calculate this fee to the price of the product/service, like they do with rent, electricity, gas, employee wages etc...
- sph 5y agoGotcha, but it sounds like it’s more of a tax on businesses than customers, though to be fair it’s the same thing depending on how you look at it. It would still cost me £50 if I had paid in cash.