Hacker News Reader

Comment by imartin2k | Hacker News Reader

I see your point, but I have a slight correction: The EU has regulated the interchange fee, which is since then capped at "0.2% of the transaction value for Visa and Mastercard consumer debit cards" and "0.3% of the transaction value for Visa and Mastercard consumer credit cards." (https://www.adyen.com/blog/all-you-need-to-know-about-the-eu...)

However, I am not a payment expert, so there might be an additional fee imposed by the credit card networks which I am not aware of?

This percentage does seem a bit more reasonable for the services offered by Visa and Mastercard, in my eyes.

View on HN

Well, true, that's somewhat better. But it's the principle of a privately-owned monopoly or oligopoly skimming profits off of a nation's economy that bothers me, not the absolute amount.

As the other response to my comment said, cash itself has an overhead cost, too. But that cost is paid to our government at break-even cost, instead of to a private company for profit.

If Visa and Mastercard had plenty of competition, it wouldn't be so bad. Swish is nice to have, despite its problems. Maybe we'll get there.

Yeah I tried to find the rates that Swish charges to businesses but didn't find them (although didn't look to thoroughly either). But can it really be even below the 0,2% of cap for debit cards?

The rates for Danish MobilePay were easy to find [1], and are flat, under 30-75 ears [2] depending on volume. I'd guess that's around 0.5-1%, but I don't have much idea.

[1] https://mobilepay.dk/da-dk/erhverv/Pages/mobilepay-myshop.as...

[2] Well, I say "crowns" in English

Swish is 1 to 2 SEK (2 being the list price that can be negotiated) per transaction. Then swish has a daily cap of payments you as user can do of 150k SEK (system limit, not a soft cap that the user can remove).

That is an extremely low limit for any noteworthy business, equating to $500k USD a month total. Most small grocers here in Seattle do more than that in credit/debit monthly.

The Swish limit is for outbound payments, not total transactions.

So a grocer that accepts Swish payments will in no way be hindered by this limit, unless they for some ungodly reason are also swishing money back to customers.

The pricing of the most common merchant service provider (Nets) in Finland is 0.31% for EU VISA/MC debit cards (max 0.75 EUR per transaction) and 0.90% for EU consumer VISA/MC credit cards. For reference, approx. 80% of card transactions are debit here.

Magstripe transactions, non-EU cards, and non-consumer credit cards have higher rates.

Could be similar in Sweden.

Reply on news.ycombinator.com