When you’re checking out, you mindlessly swipe your card. But beyond that swipe (or typing your card number online) is a series of complex events. 🧠
Generally, credit card companies take a cut of each transaction. Then, the card issuer (Visa, Mastercard, etc) takes its own percentage. Some of that money goes back to you via rewards— about 2.9% + some change.
Starting today, merchants might actually lose with PayPal’s “proprietary services.” The payments giant announced plans to raise transaction fees to 3.49% plus 49 cents.Â
That’s about a 16% increase in transaction fees. RIP. On the other hand, $PYPL investors could have something to look forward to… assuming merchants don’t abandon PayPal.