How credit cards make money

Re:How credit cards make money by Jensson on Friday November 05, 2021 @10:42PM (#29127049)

> The business doesn't lose 3 percent of revenue, because it also saves money not dealing with cash:

Debit cards circumvents the need for cash as well and are much cheaper. Everyone uses debit cards where I live, cash is very rare so companies doesn't need to deal with it much.

So the difference is really just a straight 3% vs 0.15% with no other consequences.

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Re:How credit cards make money by perl4ever on Saturday November 06, 2021 @12:09AM (#29127451)

I think 3% is an exaggeration. And in fact, you can get 2% cash back. I don't think there's very much being charged when all is said and done.

This seems to show the fees can be considerably less than 3%, although PayPal or Square will charge nearly that:

https://www.fool.com/the-ascent/research/average-credit-card...

https://www.mastercard.us/en-us/business/overview/support/me...

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Re:How credit cards make money by rsj_hn on Friday November 05, 2021 @10:47PM (#29127069)

That's an interesting point. I'm not aware of any POS payment processor used by business that accepts debit cards but not credit cards. Not sure why that is.

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Re:How credit cards make money by Jensson on Friday November 05, 2021 @10:53PM (#29127099)

I think it is mostly that it confuses buyers and that confusion costs more than credit cards costs. You'd need regulations to get around this.

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