Comment by gorgmah
16 days ago
It's partly true: this only applies to consumer cards. That's why many EU banks still offer corporate credit cards with huge cashback etc. For example, revolut offers no cashback in France on their metal cards if you have a consumer account, but up to 1% cashback on the same card if you have a "freelance" account. https://www.revolut.com/fr-FR/metal/
Second thing: interchange fees are not the only fees that your typical store has to pay, the total fees are much higher. I think the EU essentially capped Visa/Mastercard profit in the EU, more than they capped small business fees for card payment.
> That's why many EU banks still offer corporate credit cards with huge cashback etc. For example, revolut offers no cashback in France on their metal cards if you have a consumer account, but up to 1% cashback on the same card if you have a "freelance" account.
If 1% is huge, that's a lot better. 2% cashback is my baseline for normal in the US and I currently use a 4% on everything card (no longer available for new customers).
I don't like the cashback system, but the economics insist I use it while it's available.
> That's why many EU banks still offer corporate credit cards with huge cashback et
We're a business in the UK and the charges for accepting Business credit cards is much higher.
I don't have current charges to hand, but in 2023 Personal Credit Cards were 1.97% whilst for Business Credit Cards we were charged 3.43%. That's probably how they afford such high cashback/loyalty schemes.
I think we're paying about half those rates now. I know Amex is somewhere between Personal and Business charges.
Never heard about this before but it sounds crazy. Are you able to control this somehow, like reject business cards?
I don't think we can selectively reject them, it's not anything I've looked into though so not certain about that.
Although we are a B2B business, most of our card transactions are from business owners personal cards so it's not really an issue. We occasionally monitor the split and if it became significant we'd need to look at addressing it, probably by increasing prices for those customers.
In Denmark many retailers pass on the charge for business cards. For example it's often printed on the bottom of a restaurant menu.