"We have a contract with our partner bank that they pay us a monthly rebate that is calculated as a portion of the total interchange revenue they receive for each transaction that is run through our platform. As part of our contract/application with our customers we offer cash back rewards that is calculated as a percentage of the revenue that we receive from the bank for each of their transactions."Q: How do other credit card companies treat cash back rewards?
"We have a contract with our partner bank that they pay us a monthly rebate that is calculated as a portion of the total interchange revenue they receive for each transaction that is run through our platform. As part of our contract/application with our customers we offer cash back rewards that is calculated as a percentage of the revenue that we receive from the bank for each of their transactions."
Q: How do other credit card companies treat cash back rewards?
Cash Back Rewards- Cash back reward Incentive is used by the banks where the percentage of the amount spent comes back to the customer
Interchange fees- These are the fees that are issued by the 'card issuing bank' for each of the transactions. These are the largest expenses
Interchange fees- These are the fees that are issued by the 'card issuing bank' for each of the transactions. These are the largest expenses incurred by the merchants. This cost is involved while accepting a card payment. When credit card is used for making a payment, card associations such as VISA and MASTERCARD helps in processing, thus they charge something called an interchange fees. These fees are charged from the acquiring bank. This fees is made up of "total transaction fees+ some fixed amount.
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