topic Re: Anyone know how much CC issuer receive from grocery store transaction? in Credit Cards

Anyone know how much CC issuer receive from grocery store transaction?

Anonymous — Tue, 21 May 2013 03:33:43 GMT

Anyone know how much CC issuer receive from grocery store transaction? Say a local grocery store/ supermarket, I know the total CC transaction fee is 2%- 3% for CC transaction in it. And there's Visa/Mastercard network fee, and merchant's receiving bank also has a tiny fee..

So if someone use a basic platinum reward CC buy something in a local grocery store/ supermarket, how much does the CC issuer/bank receive from it? Above 2% or below 2%?

How about chain pharmacy, like CVS or Walgreen? Anyone know it? Thank you in advance.

Re: Anyone know how much CC issuer receive from grocery store transaction?

Anonymous — Tue, 21 May 2013 03:46:01 GMT

the exact amount of money they get can vary, depending on the bank that each of those stores are banking with, and their specific contracts with the payment networks.

it can also vary based on what type of card is used (i.e. visa, platinum visa, visa signature, etc).

the bigger stores (i.e. walmart, kroger, safeway) usually has some kind of contracts in place that allows them to be charged a lower fee than mom and pop stores.

Re: Anyone know how much CC issuer receive from grocery store transaction?

phillyguy12 — Tue, 21 May 2013 04:06:03 GMT

it really depends a lot of fees are involved w. accepting cc's the merchant's rate is set by their processor and will depend on total card volume. the processor and pmt network also tack fees on depending on a million diff variables based on everything from if a preauth was obtained to the level of address verification to how long it takes them to settle a transaction also rewards cards at one time cleared at a higher rate not sure if this still applies w. recent reforms

Re: Anyone know how much CC issuer receive from grocery store transaction?

indiolatino61 — Tue, 21 May 2013 04:08:23 GMT

@Anonymous wrote:
Anyone know how much CC issuer receive from grocery store transaction? Say a local grocery store/ supermarket, I know the total CC transaction fee is 2%- 3% for CC transaction in it. And there's Visa/Mastercard network fee, and merchant's receiving bank also has a tiny fee..

So if someone use a basic platinum reward CC buy something in a local grocery store/ supermarket, how much does the CC issuer/bank receive from it? Above 2% or below 2%?

How about chain pharmacy, like CVS or Walgreen? Anyone know it? Thank you in advance.

I think it varies substantially, especially if the merchant got the account through a 3rd party facilitator.

Re: Anyone know how much CC issuer receive from grocery store transaction?

Anonymous — Tue, 21 May 2013 12:58:48 GMT

@indiolatino61 wrote:
@Anonymous wrote:
Anyone know how much CC issuer receive from grocery store transaction? Say a local grocery store/ supermarket, I know the total CC transaction fee is 2%- 3% for CC transaction in it. And there's Visa/Mastercard network fee, and merchant's receiving bank also has a tiny fee..

So if someone use a basic platinum reward CC buy something in a local grocery store/ supermarket, how much does the CC issuer/bank receive from it? Above 2% or below 2%?

How about chain pharmacy, like CVS or Walgreen? Anyone know it? Thank you in advance.
I think it varies substantially, especially if the merchant got the account through a 3rd party facilitator.

Yes, it varies, but I think the general feeling is that it doesn't cover the 6% of BCP, or 5% of various cards, so the issuer almost certainly loses money on those transactions.

Re: Anyone know how much CC issuer receive from grocery store transaction?

Anonymous — Tue, 21 May 2013 15:31:50 GMT

You think if Target can giove you 5% for using theres cards (well and Lowes to some extent buut I know that is not a grocery store) that its probably around 5% they would spending on cc fees, thats just a guess though

Re: Anyone know how much CC issuer receive from grocery store transaction?

shakalaka — Tue, 21 May 2013 15:48:13 GMT

@Anonymous wrote:
@indiolatino61 wrote:
@Anonymous wrote:
Anyone know how much CC issuer receive from grocery store transaction? Say a local grocery store/ supermarket, I know the total CC transaction fee is 2%- 3% for CC transaction in it. And there's Visa/Mastercard network fee, and merchant's receiving bank also has a tiny fee..

So if someone use a basic platinum reward CC buy something in a local grocery store/ supermarket, how much does the CC issuer/bank receive from it? Above 2% or below 2%?

How about chain pharmacy, like CVS or Walgreen? Anyone know it? Thank you in advance.
I think it varies substantially, especially if the merchant got the account through a 3rd party facilitator.
Yes, it varies, but I think the general feeling is that it doesn't cover the 6% of BCP, or 5% of various cards, so the issuer almost certainly loses money on those transactions.

Well yes they do ... and they do not. It is the whole picture, the "loss" is marketing costs. And once the charges revolves, they will catch up with the interest. Not everyone PIF.

Re: Anyone know how much CC issuer receive from grocery store transaction?

Anonymous — Tue, 21 May 2013 16:03:10 GMT

@shakalaka wrote:
@Anonymous wrote:
@indiolatino61 wrote:
@Anonymous wrote:
Anyone know how much CC issuer receive from grocery store transaction? Say a local grocery store/ supermarket, I know the total CC transaction fee is 2%- 3% for CC transaction in it. And there's Visa/Mastercard network fee, and merchant's receiving bank also has a tiny fee..

So if someone use a basic platinum reward CC buy something in a local grocery store/ supermarket, how much does the CC issuer/bank receive from it? Above 2% or below 2%?

How about chain pharmacy, like CVS or Walgreen? Anyone know it? Thank you in advance.
I think it varies substantially, especially if the merchant got the account through a 3rd party facilitator.
Yes, it varies, but I think the general feeling is that it doesn't cover the 6% of BCP, or 5% of various cards, so the issuer almost certainly loses money on those transactions.
Well yes they do ... and they do not. It is the whole picture, the "loss" is marketing costs. And once the charges revolves, they will catch up with the interest. Not everyone PIF.

Well, in the case of BCP, they imposed a cap, implying under the old system there probably was a net loss (or at least an unacceptable ROI). But yes, in general money is made by a combination of swip charges, interest charges and annual fees, and reduced by rewards, account maintenance costs (statements, cards etc) and chargeoffs/defaults (not everyone PIF, and not everyone pays at all!)