posted on November 17, 2000 11:16:54 PM new
At the bottom is VISA/MC.
They get about 1.75%, maybe as low as 1.5%. This isn't discounted to anyone. Well, maybe the IRS. But big banks pay VISA/MC that much. For that, VISA/MC offer verification and transaction clearing services, and buy those ads.
Then there is a bank which offers merchant accounts. They get 0.25 to
3%, for a total of 2% to about 4.5%. Banks charge small accounts a far higher percentage than they charge large accounts.
For some merchant accounts (the ones spammed all over), there is yet a third hand in the merchant's pocket, for an unknown cut. This layer is of value only to those who cannot qualify for the somewhat stringent credit rating requirements to get a real merchant account.
The bank that issued the credit card does not generally get a cut. They get to keep any interest and fees however, along with the bad debts of credit card owners.
posted on November 21, 2000 08:47:30 AM new
<i>
sg52:
"At the bottom is VISA/MC.
They get about 1.75%, maybe as low as 1.5%. This isn't discounted to anyone. Well, maybe the IRS. But big banks pay VISA/MC that much. For that, VISA/MC offer verification and transaction clearing services, and buy those ads."
</i>
Would it be correct that, had PayPal/X(cess).com completed the acquisition of the bank (First Western?) as previously announced, they would have been in a position to complete transactions internally and thus have limited their transaction costs to the parent organization only?
[ edited by dimview on Nov 21, 2000 09:17 AM ]
