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European Union solved big part of the problem many years ago in 2015 with a new law. They capped the fees of Visa and Mastercard at max. 0.3% of the transaction
by therealmarv 4y ago
European Union solved big part of the problem many years ago in 2015 with a new law. They capped the fees of Visa and Mastercard at max. 0.3% of the transaction volume on private consumer cards.
It has many upsides (especially increased acceptance). The only downside: There are no real or good cashback programs (like getting 1-2% back) in Europe because of this.
- morepork 4y agoI wouldn't say that's a huge downside as in theory prices should be that little bit lower
- 4ad 4y agoAnd yet, they are higher. Of course, not because CC fees, but regardless of the reason, as the price of virtually everything that isn't a staple is higher in the EU, the fact that lower CC fees make prices trivially lower in this particular case is somewhat of an irrelevant point.
- carstenhag 4y agoInterchange yes, but that's only a small part of the price. Companies still have to pay 1-3%.
- StayTrue 4y agoMaybe I just hate money but IMO there are no good cashback schemes. A merchant-to-consumer wealth transfer that piggybacks on every transaction? Has a smell of fraud or corruption but not stinky enough for American regulators. Good job to the EU on this one.