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The interchange fees Visa/MC charge vary with what information is collected. The minimum required info is assumed to be at a higher risk of fraud, so the fee pa
by ceautery 14y ago
The interchange fees Visa/MC charge vary with what information is collected. The minimum required info is assumed to be at a higher risk of fraud, so the fee passed to the merchant is more. Sure, some optimization can be done to make online forms easier to use, but collecting more information is necessary to offset the fact that you aren't physically in a store handing someone your card, letting them see the name on your driver's license, etc.
- tobyjsullivan 14y agoThis leads to the question: Does the difference in processing fees outweigh the percentage of sales lost due to increased friction? This will have a different answer for every product and business which makes this a perfect example of something every company should be A/B testing.