Merchants that accept Visa or MasterCard pay the issuer of the card a percentage of the transaction.

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Merchants that accept Visa or MasterCard pay the issuer of the card a percentage of the transaction. For example, for each $100 charged on Visa cards, a merchant might receive only $98. Explain why Visa charges the fee and why the merchant pays it. (You should be able to use at least two core principles in your answer.)

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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