Comment by anamexis

4 years ago

The percentage that the bank charges merchants is fixed (for e.g. all Visa credit cards.) If you have a non-rewards Visa credit card, the bank just pockets the entire processing fee. With a rewards credit card, you get some of that fee back.

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anamexis

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Kirby64  4 years ago

That's actually not quite true. Depending on the Visa card 'tier' (non-branded, Signature, or Infinite), there are fees that go up. If you have an 'Infinite' card, you're costing a merchant more than if you have a regular unbranded Visa. The difference is really small, like 0.2-0.3% between base and top tier, I think, but there is a difference.