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Isn't 0.5% very competitive and basically nothing compared to taxes on the transaction? Here in Poland we have a budding "save cash" movement. And they make so
by blfr 2mo ago
Isn't 0.5% very competitive and basically nothing compared to taxes on the transaction?
Here in Poland we have a budding "save cash" movement. And they make some good points about freedom and privacy but are the loudest about the processing fees when mostly it's a way for smaller merchants to avoid paying taxes. Which is fine, I think they should be exempted anyway, but let's not pretend that it's the 0.5% in fees rather than the 30% in taxes.
- stefan_ 2mo agoIn Poland fees are capped at 0.3% for credit card, 0.2% for debit per EU. Which is why generally in the EU you don't have the insanity with credit card loyalty programs.
- blfr 2mo agoOnly the interchange is capped. The merchant has to also cover network and processor fees. And then there are some uncapped transaction supposedly so the fee covers this risk. Comes out to 0.6-0.7% for a smaller merchant with the card present.
- kccqzy 2mo agoOne person’s insanity is another person’s interesting puzzle and optimization problem.
- kakacik 2mo agoYou optimize within realm of already paying higher fees, some optimization that is. Also, some of us have actual lives to live and not obsess over such details, life is way too short and has much more to offer than bean counting accounting.
- kccqzy 2mo agoIt’s not hard to optimize so that you get more than the fees’ worth of benefits. The bank is literally hoping that most of its clientele does not optimize so that it has more fees than benefits doled out. And yes so far I’ve only seen childless people do this optimization. It seems likely that when life gets busier, a person wouldn’t find time to do this optimization.
- samsk 2mo agoThe difference is that 0.5% on the whole payment, might in some cases be actually much more than taxes on the profit. Or even worse, if you sell for whatever reason without profit, the tansaction fee is your loss.
- blfr 2mo agoStandard VAT in Poland is 23% so taxes usually dwarf fees.
- senorrib 2mo ago0.5% gross on a 1% margin business (which is most retail) is egregious.
- javcasas 2mo agoI would like to know where that 1% retail business is located. My family has a bunch of hardware/electricity retail businesses and the margins are way more than that. Like 30%-500%.
- unmole 2mo agoGroceries and fuel come to mind.
- kakacik 2mo agoYou mean subsidized wares that is priced for loss to lure masses to cheap shopping, while selling other stuff above the price? Like buying liquors like rum and whiskey in european supermarkets is almost guaranteed to give cca 2x the price of cheapest online sellers in same country. Thats age old tactic, you need to look at overall sums spent or prices across the offer
- MagicMoonlight 2mo ago[dead]
- nonethewiser 2mo agoPeople want every government service to run at a deficit and maximize the amount of pain inflicted to billionaires. They don't even need them to balance - they're just both good.
- MagicMoonlight 2mo ago[dead]