3 ms·
The percentage that the bank charges merchants is fixed (for e.g. all Visa credit cards.) If you have a non-rewards Visa credit card, the bank just pockets the
by anamexis 4y ago
The percentage that the bank charges merchants is fixed (for e.g. all Visa credit cards.) If you have a non-rewards Visa credit card, the bank just pockets the entire processing fee. With a rewards credit card, you get some of that fee back.
- Kirby64 4y agoThat's actually not quite true. Depending on the Visa card 'tier' (non-branded, Signature, or Infinite), there are fees that go up. If you have an 'Infinite' card, you're costing a merchant more than if you have a regular unbranded Visa. The difference is really small, like 0.2-0.3% between base and top tier, I think, but there is a difference.
- dahinds 4y agoThis is not true, interchange fees depend on the credit card type and rewards offered. https://merchantcostconsulting.com/lower-credit-card-processing-fees/the-complete-guide-to-interchange-fees-and-rates/ https://merchantcostconsulting.com/lower-credit-card-process...