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There's no way that is sustainable. The cards generally pay back upwards of 1% in points or cashback, so any processor that can offer rates under 1% is losing
by notatoad 12y ago
There's no way that is sustainable. The cards generally pay back upwards of 1% in points or cashback, so any processor that can offer rates under 1% is losing money somewhere.
- btian 12y agoFidelity Amex offers 2% cashback on everything, and CapitalOne Silver offers 1.5% back on everything. So I'll say that anything under 2% is unsustainable. But there's another guy who claims to have negotiated for 0.4% processing fee. I don't know how that is even remotely possible.
- notatoad 12y agohigh reward cards like that are pretty rare at most businesses - i've been told by people at the credit card companies that they assume rewards cost 1% average. and most gateways charge variable rate, so those high-reward cards are higher rate than the low-reward cards. 1.5% is a pretty normal base rate that any small-ish retailer should be able to negotiate for card-present transactions