What are the exchange of credit card fees? (Philadelphia Inquirer)

Posted on Friday, 17 December 2010 the Associated Press The Associated Press

Q: what are the costs of Exchange and why are there so speak to their subject?

A: begin by specifying a common misconception.

Contrary to popular belief, visa and MasterCard only issue credit cards. They organize networks dealing with transactions for these cards. If it was in the universe of cellular telephony, believes that companies such as operators of telephone lines and networks which calls are made.

The use of their networks accompanied by fees paid to complex.

Whenever a client pays plastic, the merchant pays a fee to the Bank who issued the card credit unions. Tax generally varies between 1% and 2% of the amount of the purchase.

Visa and MasterCard do not receive a direct tax cut. But they make money by distinct transactions with the 16,000 or if banks and credit unions that emit cards.

This is the case on one side of the line of battle, you issuers of cards and such payment processors that visa, MasterCard and American Express arguing that plastic is convenient for business and helps to drive sales, an advantage that they should pay. On the other hand are merchant who say that they pay you too expensive and should be allowed to steer customers towards payment than the cheaper options.

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Online:

American Express: http://content.usatoday.com/topics/topic/Organizations/Companies/Banking,+Financial,+Insurance,+Law/American+Express

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