Chase freedom unlimited and citi double cash swipe fees

[rgd51]

Does anyone know what the swipe fees are for these cards? I ask because I wonder how the banks can afford to give that generous of rewards even if most customer PIF.

[FinStar]

Well, it really depends on a variety of factors including the tier levels.  Chase Freedom Unlimited is issued as Visa Platinum and Visa Signature. Double Cash exists in Platinum MC, WMC and WEMC.  You would also need to know how each portfolio is leveraged rewards-wise, how many customers carry any of those cards, what percentage are active vs dormant, and of those who actively use the cards, what percentage revolve vs PIF, APR spreads, FTFs, other fees, etc.

[rgd51]

Then again Chase probably makes a lot of money through their UR portal since hotels and airlines probably pay them to be listed there. They wouldn't offer the UR program if it wasn't guaranteed to make a profit.

[Crowhelm]

---

@rgd51 wrote:

Does anyone know what the swipe fees are for these cards? I ask because I wonder how the banks can afford to give that generous of rewards even if most customer PIF.

---

Do most customers PIF? To be frank I wouldn't worry if those banks make money because they usually do. I mean even our credit union sent us an email reminding us that we can use our cashback card to pay utility bills etc. What does that tell you? They make money on every transaction, cashback or not. 

[rgd51]

Yeah they wouldn't offer these rewards programs if they weren't profitable. It's why synchrony closes all of a person's high limit low usage cards since they'd rather give those limits to someone who will use them.

[rgd51]

---

@FinStar wrote:

Well, it really depends on a variety of factors including the tier levels.  Chase Freedom Unlimited is issued as Visa Platinum and Visa Signature. Double Cash exists in Platinum MC, WMC and WEMC.  You would also need to know how each portfolio is leveraged rewards-wise, how many customers carry any of those cards, what percentage are active vs dormant, and of those who actively use the cards, what percentage revolve vs PIF, APR spreads, FTFs, other fees, etc.

---

What are the usual swipe fees for visa platinum and visa signature?

[Anonymous]

---

@rgd51 wrote:

---

@FinStar wrote:

Well, it really depends on a variety of factors including the tier levels.  Chase Freedom Unlimited is issued as Visa Platinum and Visa Signature. Double Cash exists in Platinum MC, WMC and WEMC.  You would also need to know how each portfolio is leveraged rewards-wise, how many customers carry any of those cards, what percentage are active vs dormant, and of those who actively use the cards, what percentage revolve vs PIF, APR spreads, FTFs, other fees, etc.

---

What are the usual swipe fees for visa platinum and visa signature?

---

Depends on what the card is used for. Starts on page 7. 

https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf

[rgd51]

---

@Anonymous wrote:

---

@rgd51 wrote:

---

@FinStar wrote:

Well, it really depends on a variety of factors including the tier levels.  Chase Freedom Unlimited is issued as Visa Platinum and Visa Signature. Double Cash exists in Platinum MC, WMC and WEMC.  You would also need to know how each portfolio is leveraged rewards-wise, how many customers carry any of those cards, what percentage are active vs dormant, and of those who actively use the cards, what percentage revolve vs PIF, APR spreads, FTFs, other fees, etc.

---

What are the usual swipe fees for visa platinum and visa signature?

---

Depends on what the card is used for. Starts on page 7. 

https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf

---

Those fees are lower than the 3% some cards give in certain circumstances so I wonder how they make a profit off people who pay in full? I could see them doing it on a flat rate 1.5% card and maybe a 2% card (although very little) but I can't see it on cards that pay 3% in certain categories. 

[Otto77]

Banks make most of their credit card revenue on interest charges. Bonus chasers and high rewards rates for customers who always pay in full are not profitable as you've noticed. However, just one person paying 15+% APR every month covers the customers who always pay in full many times over. There are probably more people carrying a balance than you think.

[Anonymous]

---

@Anonymous wrote:

---

@rgd51 wrote:

---

@FinStar wrote:

Well, it really depends on a variety of factors including the tier levels.  Chase Freedom Unlimited is issued as Visa Platinum and Visa Signature. Double Cash exists in Platinum MC, WMC and WEMC.  You would also need to know how each portfolio is leveraged rewards-wise, how many customers carry any of those cards, what percentage are active vs dormant, and of those who actively use the cards, what percentage revolve vs PIF, APR spreads, FTFs, other fees, etc.

---

What are the usual swipe fees for visa platinum and visa signature?

---

Depends on what the card is used for. Starts on page 7. 

https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf

---

Note at the beginning:

Visa uses interchange reimbursement fees as transfer fees between financial institutions to balance and
grow the payment system for the benefit of all participants. Merchants do not pay interchange
reimbursement fees; merchants pay "merchant discount" to their financial institution. This is an
important distinction, because merchants buy a variety of processing services from financial institutions;
all these services may be included in their merchant discount rate, which is typically a percentage rate
per transaction.