Visa and Mastercard are horrible companies. For smaller businesses.
If your transaction numbers are low they charge a flat + percentage
So like 0.55 EUR + 1.2%. Stores in this tier generally try and keep a minimum spend, because you buy 1 EUR and mastercard charges 56c. From 44c you have to pay for product and make a profit. It’s stupid.
You can opt for plans that don’t have flat fee, so it’s like 2.25% percentage only.
Useful if you move a lot of small value items like a small convinience store.
But if you’re a chain of convinience like SPAR, they can get custom deals.
SPAR had a tiered deal, transactions below 1 EUR, they charge 0.4%, below 4 EUR it was 0.9%, below 10 EUR 1.5% and, above 1.9%
This would never be possible for smaller shops.
Every transaction enriches some foreign country as they take the cut. Homegrown system like wero should be dominant, cheap and stays in local economy.
Also I’d like to note, I’ve been out of touch of Europe for a while so my opinions and knowledge might be dated, but this is solved problem in ASIA, PayNow, Prompt Pay, UPI etc exist and are fantastic solutions for small businesses.
Cannot wait for the new payment systems being worked on. Visa and mastercard are going to lose out on their biggest bloc because of greed and stupid voters.
Visa and Mastercard are horrible companies. For smaller businesses.
If your transaction numbers are low they charge a flat + percentage So like 0.55 EUR + 1.2%. Stores in this tier generally try and keep a minimum spend, because you buy 1 EUR and mastercard charges 56c. From 44c you have to pay for product and make a profit. It’s stupid.
You can opt for plans that don’t have flat fee, so it’s like 2.25% percentage only. Useful if you move a lot of small value items like a small convinience store.
But if you’re a chain of convinience like SPAR, they can get custom deals. SPAR had a tiered deal, transactions below 1 EUR, they charge 0.4%, below 4 EUR it was 0.9%, below 10 EUR 1.5% and, above 1.9% This would never be possible for smaller shops.
Every transaction enriches some foreign country as they take the cut. Homegrown system like wero should be dominant, cheap and stays in local economy.
Also I’d like to note, I’ve been out of touch of Europe for a while so my opinions and knowledge might be dated, but this is solved problem in ASIA, PayNow, Prompt Pay, UPI etc exist and are fantastic solutions for small businesses.
Cannot wait for the new payment systems being worked on. Visa and mastercard are going to lose out on their biggest bloc because of greed and stupid voters.