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I've always wondered what kind of rate a high volume company like McDonalds or Walmart could negotiate? Could they be paying pennies per transaction?
by tocomment 13y ago
I've always wondered what kind of rate a high volume company like McDonalds or Walmart could negotiate? Could they be paying pennies per transaction?
- wheelerwj 13y agoalmost certainly cheaper, but i doubt they ever make it to pennies per transaction. the best rates I have heard about are 1.6% + 20-30c
- dangrossman 13y agoAFAIK, Wal-Mart is the only retail store that negotiates directly with Visa and MasterCard, and that only really happened after it sued both card networks a decade ago over being forced to accept cards with higher fees if it wanted to accept debit in its stores. They're still not happy with what they're paying; they urged a rejection of the settlement offer in the latest class action suits over processing fees because it still left Visa/MC's ability to raise those fees when they want intact. So it's likely even large chains like McDonalds still pay the 1-2% interchange rates everyone else pays, just with a lower markup than average. They do pre-negotiate rates on behalf of their franchisees, which own the merchant accounts for their individual stores.
- amavisca 13y agoBoth of these companies process through First Data.
- PeterisP 13y agoEven they don't get lower rates than interchange, because issuing banks get that no matter what. But they can get a very low margin above that.