4 ms·

One can hope. The novus network attempts to provide a semblance of competition to AMEX, Visa and Mastercard in the US.

dev_daftly 3y ago
How would that change after this merger?
MuffinFlavored 3y ago
Do North American consumers/merchants pay less in processing fees overall than European/Asian counterparts or is it roughly 1-3% all over the world?
- csnover 3y ago
  As far as I can tell, consumer interchange fees in the US are significantly higher than they are in Europe. The interchange fees for Visa and MC consumer products within the EEU are 0.2–0.3%[0][1], whereas in the US they are from 1–3%[2][3]. [0] https://www.visa.co.uk/dam/VCOM/regional/ve/unitedkingdom/PDF/fees-and-interchange/intra-eea-interchange-october-2021.pdf https://www.visa.co.uk/dam/VCOM/regional/ve/unitedkingdom/PD... [1] https://www.mastercard.co.uk/content/dam/public/mastercardcom/eu/gb/Other/Website_Intra_EEA_Fallback_Interchange_Fees_220121.pdf https://www.mastercard.co.uk/content/dam/public/mastercardco... [2] 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... [3] https://www.mastercard.us/content/dam/public/mastercardcom/na/us/en/documents/merchant-rates-2022-2023-apr22-2022.pdf https://www.mastercard.us/content/dam/public/mastercardcom/n...
  - MuffinFlavored 3y ago
    I asked ChatGPT about this. It said for interchange portion, sure. I'm not sure if EU payment processors finds a way to make it up in different portions of the fees so that it evens out to the same 1-3%?
    - piperswe 3y ago
      What's with all these "I asked ChatGPT" comments? I've seen quite a few, and I don't think any of them have added anything to a conversation.
      - MuffinFlavored 3y ago
        How else would you quickly try to understand complex research topics like: "how much are payment processing fees in north america compared to europe/asia"?
        piperswe 3y ago
        I'd probably type that into a search engine, come across https://en.wikipedia.org/wiki/Interchange_fee https://en.wikipedia.org/wiki/Interchange_fee, and have all the information I'm looking for.
    - przemub 3y ago
      Not really, no. It's more than enough for them to operate on. The only downside from the American point of view is that banks very rarely offer cashback, points, etc.
      - MuffinFlavored 3y ago
        > In Europe, credit card processing fees are generally lower compared to other regions, partly due to regulatory caps on interchange fees. For consumer debit and credit cards issued within the European Economic Area (EEA), the interchange fees are capped at 0.2% and 0.3% of the transaction value, respectively. However, total processing costs for merchants can be higher once all fees are included, often ranging from 1% to 2% per transaction.
        coder543 3y ago
        You seem to be quoting ChatGPT, and you're not even specifying that it's ChatGPT-4, so I automatically assume ChatGPT-3.5, which hallucinates at an astonishing rate. Regardless, all current LLMs can hallucinate. As ChatGPT's disclaimer says, "ChatGPT can make mistakes. Consider checking important information." A non-GPT source: https://www.lendingtree.com/credit-cards/articles/na-vs-eu-interchangefees/ https://www.lendingtree.com/credit-cards/articles/na-vs-eu-i... Quoting the relevant statement: "American merchants pay, on average, 1.76% in interchange fees – compared to a 0.96% average in most European nations." Most of the other sources I'm seeing are quoting even lower numbers. Transactions do seem to have less overhead in Europe than North America.
- xordon 3y ago
  The fees are significantly lower in Europe, the rewards/kick backs given to card holders are also less.

How would that change after this merger?

Do North American consumers/merchants pay less in processing fees overall than European/Asian counterparts or is it roughly 1-3% all over the world?

csnover 3y ago
As far as I can tell, consumer interchange fees in the US are significantly higher than they are in Europe. The interchange fees for Visa and MC consumer products within the EEU are 0.2–0.3%[0][1], whereas in the US they are from 1–3%[2][3]. [0] https://www.visa.co.uk/dam/VCOM/regional/ve/unitedkingdom/PDF/fees-and-interchange/intra-eea-interchange-october-2021.pdf https://www.visa.co.uk/dam/VCOM/regional/ve/unitedkingdom/PD... [1] https://www.mastercard.co.uk/content/dam/public/mastercardcom/eu/gb/Other/Website_Intra_EEA_Fallback_Interchange_Fees_220121.pdf https://www.mastercard.co.uk/content/dam/public/mastercardco... [2] 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... [3] https://www.mastercard.us/content/dam/public/mastercardcom/na/us/en/documents/merchant-rates-2022-2023-apr22-2022.pdf https://www.mastercard.us/content/dam/public/mastercardcom/n...
- MuffinFlavored 3y ago
  I asked ChatGPT about this. It said for interchange portion, sure. I'm not sure if EU payment processors finds a way to make it up in different portions of the fees so that it evens out to the same 1-3%?
  - piperswe 3y ago
    What's with all these "I asked ChatGPT" comments? I've seen quite a few, and I don't think any of them have added anything to a conversation.
    - MuffinFlavored 3y ago
      How else would you quickly try to understand complex research topics like: "how much are payment processing fees in north america compared to europe/asia"?
      - piperswe 3y ago
        I'd probably type that into a search engine, come across https://en.wikipedia.org/wiki/Interchange_fee https://en.wikipedia.org/wiki/Interchange_fee, and have all the information I'm looking for.
  - przemub 3y ago
    Not really, no. It's more than enough for them to operate on. The only downside from the American point of view is that banks very rarely offer cashback, points, etc.
    - MuffinFlavored 3y ago
      > In Europe, credit card processing fees are generally lower compared to other regions, partly due to regulatory caps on interchange fees. For consumer debit and credit cards issued within the European Economic Area (EEA), the interchange fees are capped at 0.2% and 0.3% of the transaction value, respectively. However, total processing costs for merchants can be higher once all fees are included, often ranging from 1% to 2% per transaction.
      - coder543 3y ago
        You seem to be quoting ChatGPT, and you're not even specifying that it's ChatGPT-4, so I automatically assume ChatGPT-3.5, which hallucinates at an astonishing rate. Regardless, all current LLMs can hallucinate. As ChatGPT's disclaimer says, "ChatGPT can make mistakes. Consider checking important information." A non-GPT source: https://www.lendingtree.com/credit-cards/articles/na-vs-eu-interchangefees/ https://www.lendingtree.com/credit-cards/articles/na-vs-eu-i... Quoting the relevant statement: "American merchants pay, on average, 1.76% in interchange fees – compared to a 0.96% average in most European nations." Most of the other sources I'm seeing are quoting even lower numbers. Transactions do seem to have less overhead in Europe than North America.
xordon 3y ago
The fees are significantly lower in Europe, the rewards/kick backs given to card holders are also less.