Hacker News Reader

Visa gets 1% and the bank gets the rest actually.

Which they use to fund cash back programs...

It'd be nice to see what an actually competitive payment processing market would look like. Merchants seem to have no power in this system and I don't see much effort between banks to compete for business, either. These offerings are stagnant and reflect an effort to keep profits artificially high rather than reduce costs and expand on volume.

I think cash discounts and similar models can work to avoid paying the CC fee (now that vendors are allowed to do that)

Besides the point but visa actually gets about 0.14%

I pulled up their financials previously and their gross margin was 1%.

Net income is a weird number so I tend to ignore it for this kind of stuff.

Certainly I could have missed the payback style stuff they do but I thought that was included in the number I checked.

Reply on news.ycombinator.com