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> They are taking a percentage point or two on the entire consumer payment system. Visa/MC make about 0.1-0.13% of each transaction, not a 1-2%. The rest of t
by loeg 9mo ago
> They are taking a percentage point or two on the entire consumer payment system.
Visa/MC make about 0.1-0.13% of each transaction, not a 1-2%. The rest of the interchange (the vast majority) goes to the issuing bank.
- scotty79 9mo agoDoesn't it depend on the country? Payments with Visa and MasterCard work very differently in various countires. In Poland you can pay 0.01€ with credit card and the seller will happily oblige. In Germany even few Euros they prefer to be paid in cash.
- loeg 9mo agoThat's their cut in the US, the market with the highest total interchange fees. In other markets with lower total fees, it's hard to imagine Visa/MC's cut being higher. They do a pretty useful service for a pretty reasonable fee. Patio11 doesn't name names or give precise figures, but: https://www.bitsaboutmoney.com/archive/how-credit-cards-make-money/ https://www.bitsaboutmoney.com/archive/how-credit-cards-make...