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Interchange fees dont go directly to bank providing the card afaik. Visa/Mastercard network take a cut, I recall reading 0.25% on CC in Europe? Then the merchant bank takes a cut (merchant services and shouldering last man standing chargeback/fraud risks - hence why sometimes merchants pay 4%+) and then hmm anyone else?? I doubt any more than 1% is remitted to the bank providing the card given I know some physical retailer (small) paying ~1.4% in UK.

In the UK they also market you for $. They ain't sending you that exclusive "loyal VIP customer" introduction/bonus offer for virgin wine, or some fitness club, or breakdown out the goodness of their heart..Which is probably another nice earner on top of everything else




The European rules to limit transaction fees seem to have removed almost all cashback cards from the UK.

There are still some [1] with introductory cashback, or very limited cashback, but nothing like the 2-3% ones that used to exist.

I'm not sorry to see them go -- charging all customers an extra 1.5% (or whatever) in order to give a savvy few cashback isn't fair.

[1] http://www.moneysavingexpert.com/credit-cards/cashback-credi...


>anyone else??

Credit card partners!

So if you get your favorite sports team's credit card, they get a cut.

http://www.doctorofcredit.com/everything-you-ever-wanted-to-...

There's even a Linux credit card (not kidding) https://www.linuxfoundation.org/offerings/linux-credit-card




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