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A majority of credit card fees goes to the issuing bank. Like a huge percentage of it. Visa and credit card processors take a much smaller percentage relative t
by maya24 6y ago
A majority of credit card fees goes to the issuing bank. Like a huge percentage of it. Visa and credit card processors take a much smaller percentage relative to the banks.
- rrrrrrrrrrrryan 6y agoYes - the banks then hand a substantial portion of these fees back to the customer via credit card rewards. We have a bizarre system where retailers mark everything up an extra 2%, to give their more well-off customers (that pay with decent credit cards) an effective 2% discount and the ability to dispute charges. I think retailers would love a new system with less transaction fees, but banks definitely would not, and some customers may not either if it means sacrificing their credit card rewards and perks.
- oliv__ 6y agoCome on now, everybody's got a 2% cashback card
- macromagnon 6y agoSome even have 3-4, all maxed out.