Quote:
Originally Posted by kr4l
Credit cards are definitely not 2-4%. More like 1.5%. Visa and m/c is about the same, while Amex is almost double
In the end, it's percentage so I doubt Starbucks cares. Some companies charge a super low rate for credit cards but charge a small fee per transaction. Good for big ticketed items, shitty for small things
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Actually, a lot of premium cards are in the 3-4% range. Those rewards, travel insurance policies, warranties, etc. aren't cheap.
For a lot of businesses, margins are quite thin - 4-5%. If some of the biggest retailers in the world, such as Walmart and Costco, are only willing to work with one credit card company, then it speaks to how much is at stake.
It's why a lot of family-run businesses refuse to accept credit cards - the fees are simply too high considering their razor thin margins.