Re:Anatomy of a credit card rewards program
by devman0 on Thursday April 04, 2024 @01:21PM
(#39933333)
In a properly working market, every consumer would pay their exact interchange fee and it would be printed on the receipt as a pass-through cost.
This would actively drive interchange fees lower when consumers have to choose to pay 3% on an Amex swipe vs 1.6% no frills MasterCard swipe, or .05% for a debit swipe.
The reasons there is no downward pressure today is because there is because there is no transparency, and no incentive for consumers to choose a lower cost card.
This would actively drive interchange fees lower when consumers have to choose to pay 3% on an Amex swipe vs 1.6% no frills MasterCard swipe, or .05% for a debit swipe.
The reasons there is no downward pressure today is because there is because there is no transparency, and no incentive for consumers to choose a lower cost card.