| ▲ | 3pm 4 hours ago | |
> The issuing bank keeps 2% Is this why the best cash back credit cards give 2%? | ||
| ▲ | will_occam 5 minutes ago | parent | next [-] | |
Yes that intuition is correct, though the reality is much more complicated. The actual share to the bank is roughly proportional to the risk of the transaction/ tied to the type of credit card https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-in... | ||
| ▲ | nonethewiser 4 hours ago | parent | prev | next [-] | |
In the US. Not in Europe because interchange fees for consumer cards are capped at 0.3% | ||
| ▲ | dmoy 4 hours ago | parent | prev | next [-] | |
US Bank for a brief period opened up a 4% card, but then closed it so quick that obviously the numbers didn't work out there. 2% seems to be a local maximum of cashback cards. There's a lot of 2% cards, and only a handful above that. Makes sense? | ||
| ▲ | pverheggen 4 hours ago | parent | prev [-] | |
2% is just an example figure, the actual rate varies | ||