£125 credit card charge!?!?!

Eydon

dzug1 wrote: »

Yes it DOES cost them £125 or thereabouts to process the payment. Start believing it fast. How do you think the CC companies cover their costs from those who pay off in full and don't pay any interest? From the fees the retailer pays them.

Let's remember here that the 2.5% (or whatever) charge is being imposed by the acquiring bank (the one that supplies the terminal) rather than the issuing bank (the one that supplies the card). There are only a few acquiring banks (Barclays, RBS, Natwest and a couple of others). IIRC the issuing bank gets nothing from the charge. The bulk of the charge is used by the acquiring bank to pay the fee charged by Visa and Mastercard to process the transaction.

BigDave81

Thanks Dazza.MK and Paul Herring I wasn't aware you could just pay any minimal amount by cc to be covered.

Learn something new every day

leachyd

dzug1 wrote: »

Yes it DOES cost them £125 or thereabouts to process the payment. Start believing it fast. How do you think the CC companies cover their costs from those who pay off in full and don't pay any interest? From the fees the retailer pays them.

Or from the people that don't pay off in full every month and pay interest?

Neillgb

Yep get it from both and failing that, perhaps in the event of associated business' losing a punt on the American property market, the British taxpayers cover their 'costs'.........lubbly jubbly.