3 ms·
You left out the reason there is a minimum - there is a cost to run the card that is fee(purchase) = A * purchase + B. The minimum is to ensure that B doesn't d
by HWR_14 5y ago
You left out the reason there is a minimum - there is a cost to run the card that is fee(purchase) = A * purchase + B. The minimum is to ensure that B doesn't dig too much into their profit margins (which is also a percent).
And while they may think it's worthwhile to sell you a fountain drink for $1 on the card, it's too complex to break it up like that.
- woodruffw 5y ago> You left out the reason there is a minimum - there is a cost to run the card that is fee(purchase) = A * purchase + B. The minimum is to ensure that B doesn't dig too much into their profit margins (which is also a percent). The reason there's a minimum is that the Federal government forbade credit card companies from mandating acceptance for all charges. That was done in the consumers' interests, but it came from the top down, not the beneficence of Mastercard and Visa (who, prior, were more than happy to take 2-3c on every $1 card purchase.)