Cryptocurrency Q&A
Who does the transaction fee go to?
Who does the transaction fee go to?
KimonoElegance
Sat Oct 12 2024
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7 answers
1647
I'm wondering about transaction fees. When a transaction occurs, who exactly receives this fee? Is it the bank, the payment processor, or someone else entirely?
7 answers
Carlo
Mon Oct 14 2024
Interchange fees are a crucial aspect of credit card transactions, with the majority of the transaction cost attributed to them. These fees are directed to the issuing bank of the credit card, serving as a significant source of revenue.
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CryptoNinja
Mon Oct 14 2024
The interchange fee structure typically comprises two components: a percentage of the transaction amount and a fixed amount. This dual-pronged approach ensures that the issuing bank receives a fair and consistent compensation for each transaction processed.
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noah_doe_writer
Mon Oct 14 2024
The percentage component of the interchange fee varies based on various factors, such as the type of card used, the merchant's industry, and the transaction amount. Higher-risk transactions or those involving premium cards often attract higher percentage fees.
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benjamin_cole_nurse
Mon Oct 14 2024
The fixed amount component, on the other hand, remains constant regardless of the transaction amount. It serves as a base fee that the issuing bank charges for processing each transaction.
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SumoStrength
Sun Oct 13 2024
The interplay between these two components results in a balanced fee structure that ensures that the issuing bank is adequately compensated for the risks and costs associated with credit card transactions.
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