I was recently trying to find current data on how expensive it is - and why - for merchants to accept cards, but it’s hard to get accurate data on that. As far as I understand, the following parties want to earn money:
- The bank of the consumer (e.g. Revolut)
- The credit card company (e.g. Visa)
- The bank of the merchant
Now from what I understand, the share of the consumer’s bank is called interchange and is now quite low (0.2 to 0.3%). Is that correct?
The question I couldn’t get an answer for is how much the credit card company gets. Does anyone have data on that? Because then I’ve tried to find some offers for merchants, and it seems like they still have to pay around 3% for card payments (see, e.g., here). So now here is my main question: There is 10x gap between the interchange and the merchant fee, where does that come from? Does Visa / Mastercard charge so much?
Thanks for clarifications!