Re:Visa and Mastercard agree to lower average credit card in...
by rjmunro on Friday May 19, 2023 @04:19AM
(#35999210)
This is a bank to bank fee. The merchant's bank will charge the merchant a higher fee than this. The banks take no risk here because normally they any fraud get's paid by the merchant through charge back. The only risk is that the merchant goes away completely, but banks have to deal with that possibility all the time.
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Re:Visa and Mastercard agree to lower average credit card in...
by eru on Friday May 19, 2023 @04:26AM
(#35999260)
The payout to the merchant is delayed, isn't it? So if they go away, they don't get paid anyway?
Re:Visa and Mastercard agree to lower average credit card in...
by rjmunro on Friday May 19, 2023 @04:38AM
(#35999336)
That's one of the ways merchant's banks mitigate the risk, yes. But you have 120 days to make a chargeback, and I think most banks don't delay the payment that long.
I believe bigger merchants with better credit ratings can normally negotiate faster repayments.