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Ask HN: Why do payment processors charge a percent fee on transactions?

Posted by rahulskn86 on Tuesday June 22, 2021 @02:58PM
from the ask-hn dept.
Why don't we have fixed fees per transaction? Do payment processors have to do more stuff to complete a high value transaction vs a low value one?

In my opinion, the thing that drives cost for payment processors is the number of transactions, not their amount, so wouldn't it be fair to charge customers based on that?

( 3 comments | 3 points | on HN )
Re:Ask HN: Why do payment processors charge a percent fee on... by ksaj on Tuesday June 22, 2021 @04:53PM (#27597055)
The higher fees subsidize the lower ones. If it were flattened, people wouldn't want to do smaller transactions because the fees would be too high by proportion.
[ Parent | on HN ]
Re:Ask HN: Why do payment processors charge a percent fee on... by ev1 on Tuesday June 22, 2021 @03:20PM (#27595934)
More profit to charge a higher fee on larger transactions.
[ Parent | on HN ]
Re:Ask HN: Why do payment processors charge a percent fee on... by trinovantes on Tuesday June 22, 2021 @04:23PM (#27596714)
Someone has to foot the bill for credit card rewards
[ Parent | on HN ]