Even the place that I work at doesn't accept Discover cards... what's going on with that?
2007-07-28 15:34:59 · 4 answers · asked by Ping 1 in Business & Finance ➔ Credit
When a merchant makes the decision to offer MasterCard, visa, and American express they contact the bank that they have the business checking account with. MasterCard and Visa have the lowest fees that are charged to the merchant (typically 1.5 to 2.5%) while america express and discover charge the merchants between 4-6% to the merchant. So when a consumer buys $100 from the vender, using midline of visa and mastercard (est) merchant has to absorb the roughly $2 into cost of doing business. The same $100 while using discover charges the vender $5 (est). Each vender has to choose which of these companies they want keep so to insure their cost of doing business down so prices wont need to go up thru price increases to the consumers. I haded a website the may be beneficial, hope it helps!
2007-07-28 16:02:24 · answer #1 · answered by Etta P 4 · 0⤊ 0⤋
Mastercard and Visa are the two major credit cards. Some stores do not have a credit machine that will accept Discover.
2007-07-28 15:40:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Perhaps it's just the area you live in. I've used my Discover card extensively for business travel and had no problems. Discover Card seems to be accepted more places than American Express.
2007-07-28 15:48:10 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
discover charges the store 3% of sales. visa only charges 2%
2007-07-28 15:43:40 · answer #4 · answered by Patrick M 2 · 0⤊ 0⤋