• BeMoreCareful@lemdro.id
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      1 year ago

      I think this is specifically talking about users.

      I bet businesses pay a lot more that 130 billion at 3% per transaction.

      • AlecSadler@sh.itjust.works
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        1 year ago

        As a business owner, there is also a monthly generic processing fee. Oftentimes there’s a software licensing fee. There’s also a compliance fee (sometimes). There are also periodic shore-up fees of the over/under was off during the month. Sometimes there are equipment rental fees or service fees, or you can buy it outright but there’s typically still a monthly fee to use it.

        Also AmEx is the worst offender depending on your processor, they can charge upwards of 6% to process. Discover is around 3%. Visa & MC are ~1-2%. That’s why blended processors tend to be around 2-3%, but it also depends on volume.

        Honestly, looking back at a former small business I had, I think it would have been better to be cash only and have an ATM. I know it’d annoy some customers, but our fees/costs just to accept cards was probably 5-10% of gross revenues each month. Then you take out labor, utilities, rent, raw cogs, etc. and your net margin gets real small, real fast.