CardFellow

9 ms·

1.
by CardFellow 8y ago
We don't know which rates Visa/MC are actually raising yet, but probably not. It has a lot to do with how/what processors charge. Along with lowering costs, Optblue let processors add a markup to Amex transactions. (Previousl
2.
by CardFellow 8y ago
Yeah, credit assessment is .14, debit is .13.
3.
by CardFellow 8y ago
>But why would you want to do the credit card company's work for them? I'm not sure I'm following. The reason you'd do it is because you want to pay for a small purchase with your debit card. Like if you run into a ga
4.
by CardFellow 8y ago
The problem isn't that there aren't strong anti-fraud tools available, it's that businesses by and large don't use them. Merchants struggle as a whole to get to even 50% of card-accepting businesses actually being PCI co
5.
by CardFellow 8y ago
The problem is that as far as pricing is concerned, regulating at the interchange level isn't going to have the effect people want. That's what happened with the Durbin Amendment.. it capped regulated debit at 0.05% and 22 cents a
6.
by CardFellow 8y ago
Indeed, and it's part of why Square was a (ha) square peg in a round hole. Incidentally, it's also why they have other pricing now that does have a per-transaction fee.
7.
by CardFellow 8y ago
They actually only do get a tiny slice. Interchange fees to the issuing banks start around 1.5% while Visa's volume assessment is only 0.13%. But they get a tiny slice on an ungodly amount of transactions, so it adds up.
8.
by CardFellow 8y ago
Nah, they've been fine with cash discounts for a long time. They only became okay with surcharging / adding a fee for cards as a result of a lawsuit in 2013. They'd still prefer businesses offer a cash discount, though. They
9.
by CardFellow 8y ago
Businesses actually aren't allowed to impose minimums on debit cards. Some still try it, but technically you can report them.
10.
by CardFellow 8y ago
Definitely the case for some, I know a lot of developers love Stripe's documentation. But some others just plain equate simplicity and low cost. They have no idea how to read their complex merchant processing statement, there are all t
11.
by CardFellow 8y ago
I'll agree that processing is surprisingly lightly-regulated.
12.
by CardFellow 8y ago
It's true that they don't change prices daily, but it's also not particularly uncommon for them to do so. Visa raised an assessment I think last January? And interchange fees have changed several times over the years as well.
13.
by CardFellow 8y ago
Visa / MC rates aren't 2.5%. There are multiple components to the final rate that a business pays, with the bulk of it being interchange, which goes to the banks that issue cards. Visa/MC only get assessments and dues, which
14.
by CardFellow 8y ago
True, although Visa card circulation far eclipses MC, so you could take the gamble that they'll have a Visa. Last I checked, Visa actually had more cards in circulation than all three of the other major brands combined. Slightly old
15.
by CardFellow 8y ago
Cash discounts are legal in all states and permissible by merchant agreements.
16.
by CardFellow 8y ago
Amex lowered their fees in 2015 through their Optblue program. They're still a little bit higher than Visa/MC, but much closer than they were. If you're still getting high Amex (3.5% or more) your processor is pocketing the d
17.
by CardFellow 8y ago
I agree that there isn't much of a way to get lower interchange fees, but many, many businesses overpay at the processor level, where there IS a way to get lower total costs. >contract terms in many places preventing merchants from
18.
by CardFellow 8y ago
Visa/MC don't care what Stripe (or any other) processor charges, they get their money FROM Stripe/the other processors, by way of assessments. >Did you know that interchange on most debit cards is just 0.05% + $0.22?[1] Th
19.
by CardFellow 8y ago
Amex actually lowered their fees to be more in line with Visa/MC through its Optblue program back in 2015. The fact that many businesses don't know that is just a testament to the complexity and confusion in the industry. Source:
20.
by CardFellow 10y ago
Merchants actually can charge more for credit card usage now. It's been permissible since a 2013 lawsuit, except in 9 states where it's prohibited by state law.
21.
by CardFellow 10y ago
Visa and MasterCard have permitted surcharging for credit card use since 2013, as the result of a class action lawsuit.
22.
by CardFellow 10y ago
That's not necessarily true. The debit network fees have gone up a lot. In some cases, they get pretty close to credit card transaction costs.
23.
by CardFellow 10y ago
Unfortunately with the way things are set up right now, a percentage fee is actually the only way it makes sense for processors, who are somewhat at the mercy of banks, who charge a percentage-based fee. So if they charge a flat fee, they r
24.
by CardFellow 10y ago
Banks get money either way. They get most of the money from a credit card transaction.
25.
by CardFellow 11y ago
Curious, if you're willing to share, what was the good deal?
26.
by CardFellow 11y ago
Couple things - Chase Paymentech and First Data are processors, not banks. I'd be careful going to banks for processing, because it tends to be among the most expensive and opaque you can get. (Bank of America and Wells Fargo both have