4 ms·

Yep, people are about to learn that those credit card fees actually buy you something.

• spandextwins 3y ago
  Credit card fees, like insurance rates, are staggeringly high to cover all the crime and fraud. Just hope someday those companies don’t have to have their own law enforcement teams to go after the criminals who cause all that fraud and crime.
  • arcticbull 3y ago
    Most of the fee goes back to customers in the form of cash back and loyalty points. The networks only get some 0.3% ish, the rest goes to the issuing banks. That's why you can get a no-annual-fee 2% cash back card like the Citi Double Cash. Debit cards that fall under the Durbin amendment to the Dodd-Frank act only charge 0.05% + $0.21
    • asu_thomas 3y ago
      [dead]
• phpisthebest 3y ago
  Well several years ago I was a merchant, and every time I was victim of a fraud the Credit Card companies took their money from my payments, so those fee's did not cover the fraud at all. Not only was I out the product, I was also out the Money, and fee's a double whammy. So I 100% disagree that the " credit card fees actually buy you something" because all they do it push the liability on to the merchant. Visa and Mastercard is not covering the costs of fraud
  • taway32r41 3y ago
    I think the general idea is credit cards take care of the card holders. They've certainly always have taken care of me. And merchants are supposed to take care of themselves by raising prices. The system is certainly not perfect but seems to mostly work.