Submitted by matteoscavo t3_xwfbpp in news
FailOsprey t1_ir735cg wrote
...I still don't understand how what these companies offer justifies 1% of every retail dollar that changes hands. As the work becomes automated and the electronics become cheaper, I'd think that someone would be willing to do this for less.
razzamatazz t1_ir75nad wrote
1%? that's pretty low, 2.5 - 5% is common, plus monthly / per-swipe fees depending on the card type as well.
Parabellim t1_ir7d1cs wrote
Most of the commission is probably due to credit card rewards and insurance for fraudulent charges for card holders.
FailOsprey t1_ir7i76v wrote
...your comment sent me down a rabbit hole.
Apparently, they are able to maintain a monopoly through a combination of bribes and regulatory capture. They pay out about 10% of their revenue in the form of rewards; this amount is a pittance compared to what they are collecting, but it's enough to selectively bribe the most influential sector of society. They also shape consumer law to make themselves indispensable.
Think about it: your credit score goes down if you get rid of your credit card. If you had a VISA for ten years just because VISA was the best deal around, you will literally be punished if you decide to get rid of it.
..quite frankly, I could have never imagined that the truth was as messed up as it is.
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