4 ms·

He is wrong. In fact Apple charges the banks: http://www.bloomberg.com/news/2014-09-10/apple-said-to-reap-fees-from-banks-in-new-payment-system.html http://www.

• markonen 12y ago
  Missed this completely, thanks! Updated the article.
• Justsignedup 12y ago
  Banks make money from credit cards by * charging a % from each transaction * late fees * interest on balances This assumes banks make less money on transaction fees than they do on the other two when coupled with the potential for fraud... An interesting assumption...
  • ssharp 12y ago
    Is this how it works? My assumption was that Mastercard, Visa, American Express, and Discover were the ones that made the % of each transaction and then the issuing banks were the ones that made the money from fees and interest.
    • nthj 12y ago
      It's my understanding banks also charge a transaction fee (may be flat per-transaction rather than a percentage.) (Source: I work for an online ticketing company, so we deal with these types of things.)
    • dangrossman 12y ago
      Most of the fees end up back with the card-issuing banks. That's how they pay for the rewards programs, and why the fees are higher for rewards cards than other types.
• r00fus 12y ago
  > He is wrong. In fact Apple charges the banks The article you're linking to is not definitive. The source is anonymous and not confirmed: "Under deals reached with banks individually, Cupertino, California-based Apple will collect a fee for each transaction, said one of the people, who requested anonymity because terms aren’t public."