% Fee for merchants when using VISA/MC/AMEX

[HabsFan101]

Does anyone know the fee that merchants pay when we use Visa, MasterCard or American Express at their stores? I know this fee is higher for AMEX, but does it vary between Visa products too? Say would it be higher on an Infinite or Platinum card vs. one of the basic ones.


TIA

[WHO]

Is the search feature still disabled?

Anyway, it varies. A nationwide merchant will pay much less than a small mom&pop type store.

It doesn't varie by the type of card used (platinum, gold etc). It varies by issuer (VISA, MC,). AMEX is a lot more expensive and takes FOREVER to pay the merchant (sometime well over a month!!). I would guess Costco has a better deal with Amex though ;)

Usually, you can figure between 2 to 4% fees for credit cards.

[ant1029]

Visa/MC rates are typically between 1.7% and 1.9%, American Express is around 3.5%...Debit is typically .08-.10 cents per transaction

[java]

Is the search feature still disabled?

Anyway, it varies. A nationwide merchant will pay much less than a small mom&pop type store.

It doesn't varie by the type of card used (platinum, gold etc). It varies by issuer (VISA, MC,). AMEX is a lot more expensive and takes FOREVER to pay the merchant (sometime well over a month!!). I would guess Costco has a better deal with Amex though ;)

Usually, you can figure between 2 to 4% fees for credit cards.

I believe it can vary depending on the type of card used, I was told Visa Infinite cards carry an extra premium (0.2% or something).

[Citizen Bmac]

It definitely varies by the type of card. Corporate cards have higher fees than personal cards. Where I am it's 2.25% vs. 1.8%.

[WHO]

I was only referring to different class of cards within the same card type.
I regular VISA vs a gold VISA will make no difference for the merchant. It's just a way to get people to pay higher annual fees on their card. In that case, it's the issuer of the account that gets to pocket that extra cash. As for the merchant fees are split between a LOT of people (the acquirer, the issuer of the card itself, the issuer of the credit account...)

[brunes]

I was only referring to different class of cards within the same card type.
I regular VISA vs a gold VISA will make no difference for the merchant. It's just a way to get people to pay higher annual fees on their card. In that case, it's the issuer of the account that gets to pocket that extra cash. As for the merchant fees are split between a LOT of people (the acquirer, the issuer of the card itself, the issuer of the credit account...)

Normal vs. gold typically does not matter but platinum cards and Inifnite cards *do* have higher transactional costs.

[PaterFamilias]

It absolutely does vary by type of card. Gold, Platinum and Infinite (and Signature and World in the US) take a greater %. That's how the rewards programs those cards carry are funded. This is why in the US even the lowliest student card is now Platinum, and Signature Visas are no-fee: the banks get more money from the merchant side with these cards in consumers' hands.