posted on September 17, 2000 01:42:36 PM newFor them to be truly successful in a way which will impress shareholders, they need more like 3.75%-4%. That's where this bus is headed.
hmmmmmmm... aren't there several buses one can choose from? I can't see one bus charging more than existing bus lines.
posted on September 17, 2000 02:45:18 PM new
Just curious where you're getting your figures from. I'm completely clueless when it comes to something like this, so if you can show me how you came up with these figures I'd appreciate it!
posted on September 17, 2000 03:43:33 PM newJust curious where you're getting your figures from
Lots of banks resell credit card charging services, by offering ordinary merchant accounts. There are other companies which resell such services at a higher cost, but generally anyone with good-excellent credit can get a real merchant account.
The service costs the bank about 1.75%, and the bank resells this on a sliding scale depending mostly on how big you are. 2% is a real fine rate, but who knows, if you're doing $100 million per month, you might well do a little better. But not a lot, because VISA/MC don't discount what they charge the bank. Not much, anyway.
So I believe PayPal when they say they're passing on CC charges at 1.9%+small fee per transaction. That sounds plausible, anyway, although somewhat undefined.
But they're not profitable on that transaction, let alone the transactions they're currently giving away and not considering their overhead.
By the time you factor in overhead, all overhead, the 3% number emerges. And then there's the plan to make a profit.
posted on September 17, 2000 07:11:44 PM new
One problem with all that is that, as others have noted, PP is adding their charges when the transaction isn't through credit cards.
