Except that your calculations assume they are charging 0.1 cents = 0.001 dollars. Dob said it was only:
or only $0.00001, which means Ghanima was correct.
I’m not sure Dob is right. Even if Visa mainly makes its money from monthly fees and such, just keeping track of the number of transactions each merchant performs and adding it to their bills probably costs them more than a measly million a year. I don’t understand why Visa would go through the trouble. Low volume (1000-3000 transactions/month) merchants would have their bills increased by a few cents each month?
Maybe the actually amount is a trade secret and Dob was just using 0.001 cents as an example.
Not a trade secret, just not something that shouldn’t be shared since for all I know we have agreements with some banks to charge less! But to help with the idea, the fee is charged twice for each authorization. One charge to the Merchant bank, and one charge to the Issuer bank. The average I gave is for one full auth. So really we would make .002 cents for a full auth.
Thanks Maeglin! I always thought Amex supported the bank issued Amex cards. Seems I was wrong, thanks for setting the record straight. Im going thru our internal docs as well to learn more about it. Interesting stuff!
**Kambuckta ** seems to be implying that all the transactions that go through Visa are available to all Visa merchants. Unless I missed something, this is absolutely not true.
I am at oce…[secret handshake]! Didnt know any other fellow workers posted on the sdmb. If my guess is right tho, your an inovant guy right?
And hey Maeglin…all this talk about the Amex card issuing, and we are having an internal meeting today to go over the whole thing. Got cool talking points and everything. The credit gods must have been watching this thread.
I’m a datamonger, to use a term from a thread from last season’s Survivor. And it’s no more or less interesting than when I did the same job for other big companies. OK, maybe a *little * more interesting.
But to help with the idea, the fee is charged twice for each authorization. One charge to the Merchant bank, and one charge to the Issuer bank. The average I gave is for one full auth. So really we would make .002 cents for a full auth.