how much does it cost a company to make a credit card transaction?
2006-07-26 11:06:02 · 3 answers · asked by harry truman 2 in Business & Finance ➔ Credit
This depends upon a lot of things. Typically there is a charge per transaction and a percentage of the sale. Usually, American Express and Diner's Club have a higher rate both per transaction and on a percentage basis than Visa and Mastercard. Also, debit transactions (PIN based, not signature based) are almost always less expensive than credit (signature based) transactions.
The rates will also vary depending upon the agreement with your bank or processing center.
I've been in retail for 25 years, so my answer comes from personal experience, but the web site below add some additional information.
2006-07-26 11:19:46 · answer #1 · answered by weirina85 3 · 0⤊ 0⤋
Werina is absolutley right but the actual cost varies from 1 cent to 5 cents per dollar depending on the card and the merchants agreement!
2006-07-26 15:40:52 · answer #2 · answered by Robert m 3 · 0⤊ 0⤋
weirina85 is exactly right. I work for a bank with a large credit card processing division. That covers both sides.
2006-07-26 11:25:28 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋