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at 5%, cc fees would result 2.9 billion. So more like 16B in profit
by savingsPossible 4y ago
at 5%, cc fees would result 2.9 billion. So more like 16B in profit
- Retric 4y ago> at 5%, cc fees would result 2.9 billion. So more like 16B in profit So you assume they can do all the stuff I just mentioned for 0$ and changing their fee structure had no long term impacts on profits. Also your math doesn’t work out if 5% of 64B = 3.2B, though 25% or 64B is 16B. Not that actual CC fees are 5%, or that their old revenue model is relevant any longer.
- emn13 4y agoIt strikes me as hard to be believe it's that much - surely Apple does not pay 5% in CC fees. They _must_ have managed a better deal than that...
- nl 4y agoThere is no way that Apple is paying 5% on credit card fees. Average fees paid by merchants are 1.3% to 3.5%[1]. You can bet Apple negotiates hard on that fee. It wouldn't surprise me to learn they are paying 0.1%. [1] https://www.fool.com/the-ascent/research/average-credit-card-processing-fees-costs-america/ https://www.fool.com/the-ascent/research/average-credit-card...
- chrischen 4y agoIf transactions are small, like 99 cents, transaction fees can exceed 29%.
- nl 4y agoAnd you think Apple can't negotiate that?
- Retric 4y agoNot much, Apple can negotiate with the payment processor but but the minimums are still quite high. https://usa.visa.com/content/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf https://usa.visa.com/content/dam/VCOM/download/merchants/vis...