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Anyone know how the fees in the industry break down then ... $3bn is < 0.05% of the transaction volume ... that seems tiny to me!

Though all I know is the headline rates quoted for most common processors where <2% seems very aggressive. Who gets the other 1.95% of that?

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My apologies, I mis-quoted the annual number, which is about $10.4 bln, which is still only about .16%.

Still, your question, "Who gets the other 1.95% of that?", is valid. My guess: the card issuers themselves, who operate the networks (Visa, MC, Amex, Discover). Throw a little on top for Chase PaymentTech and the like.

The issuing bank and the acquiring bank generally split that, with about 1% or so going to each.

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