Transaction Fees and Credit Card Company Profits

[veracious]

I apologize for asking a  dull question, I couldn't find a similar thread on the board.

I'd like to know  how CCC's look at multiple transaction usage or large transaction usage.

Which is more profitable to CCC's ?

Is each transaction fee charged to a merchant  the same regardless of the size of the transaction?.

Which method of usage do CCC's  prefer,  large transactions or multiple small transactions.?

[kelli1970]

They charge the merchants a set percentage of their sales, so number of transactions does not matter to them.

[Anonymous]

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@veracious wrote:

I apologize for asking a  dull question, I couldn't find a similar thread on the board.

I'd like to know  how CCC's look at multiple transaction usage or large transaction usage.

Which is more profitable to CCC's ?

Is each transaction fee charged to a merchant  the same regardless of the size of the transaction?.

Which method of usage do CCC's  prefer,  large transactions or multiple small transactions.?

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Merchants are generally charged a relatively small per transaction fee plus a percentage of the total.  For example, every swipe costs them 25 cents plus 2% of the total.

[veracious]

Thanks, 06.

Your answer was what I was looking for.

I always wondered if merchants were charged a percentage of each sale when customers purchase with a CC.

[Anonymous]

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@veracious wrote:

Thanks, 06.

Your answer was what I was looking for.

I always wondered if merchants were charged a percentage of each sale when customers purchase with a CC.

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There may be exceptions to the rule, but most are.  It's generally a flat charge per swipe / approval plus a small percentage of the total. 

Each merchant negotiates different numbers with their processor which may involve caps or other sweetheart deals, though.

[Anonymous]

That's why many of small businesses are asking customers to pay in cash if the total due is less than $10.

[awal]

All of the gas stations in my area have started offering a Cash Price vs Credit Price. If they are wiling to pass on some of those savings to the consumer, I'm all for going to the ATM machine and withdrawing a a bucks to save a couple dollars every full up. I wish more places had that kind of pricing model...