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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 produc

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.
      - NoPedantsThanks 3y ago
        It doesn't "hallucinate." It provides incorrect output. That is all.
        coder543 3y ago
        "Hallucination" is a widely understood and accepted term in the LLM industry. If you want to change that, replying to my comment doesn't seem to be the most effective place to start. I don't know that it's the best term, but it seems better than re-explaining the issue in detail every time. "Incorrect output" is broader, encompassing other failure modes. If you ask an LLM to respond in JSON with a list of common foods, and it instead writes a paragraph of text that contains a list of common foods, then that would not qualify as a "hallucination" by my understanding of the accepted definition, but it is still "incorrect output".

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.
    - NoPedantsThanks 3y ago
      It doesn't "hallucinate." It provides incorrect output. That is all.
      - coder543 3y ago
        "Hallucination" is a widely understood and accepted term in the LLM industry. If you want to change that, replying to my comment doesn't seem to be the most effective place to start. I don't know that it's the best term, but it seems better than re-explaining the issue in detail every time. "Incorrect output" is broader, encompassing other failure modes. If you ask an LLM to respond in JSON with a list of common foods, and it instead writes a paragraph of text that contains a list of common foods, then that would not qualify as a "hallucination" by my understanding of the accepted definition, but it is still "incorrect output".