Comment by adrr
2 years ago
I see interchange is capped at 0.20%. How do credit card companies not lose money by giving a 60 day interest free loan to customers? That is what interchange fee covers. BNPL providers charge 4% for 90 days interest free loans to the merchant.
In jurisdictions that cap interchange banks cut the fat. No rewards programs, and ending perks like price protection and extended warranties. On the revenue side they are more likely to charge an annual fee. Some customers carry balances at 29.99%.
Interchange is not capped at 0.2%
For consumer cards in EU it is. 0.2% for debit, 0.3% for credit.
Sure, but this article as about the US