r/Damnthatsinteresting • u/Getatbay • 10d ago

Video EU has created a system that bypasses payment processing services like visa or mastercard

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u/Any-Platypus-3570 10d ago edited 10d ago

Also the US credit cards are charging all merchants 3% on every purchase. So Europeans have a 3% sales tax that goes directly to American companies. Europe should absolutely get their own payment processors and hopefully they have a 0% fee or like 0.01% to pay for operations and staff.

EDIT: In Europe credit card fees are capped at 0.3% Thank you u/slasher-fun and u/laplongejr for pointing this out.

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u/slasher-fun 10d ago

That's false. It's caped at 0.20% for debit cards, and 0.30% for credit cards. https://eur-lex.europa.eu/EN/legal-content/summary/fees-for-card-based-payments.html

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u/Any-Platypus-3570 10d ago

Good catch! Will edit my original comment.

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u/[deleted] 10d ago

[deleted]

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u/Any-Platypus-3570 10d ago

Europe doesn't cap credit card merchant fees to 0.3% ?

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u/DazingF1 10d ago

Already removed my comment. B2B cards aren't capped, but consumer cards are (at 0.3%).

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u/B0r1n6_Guy 10d ago

I highly doubt this information for credit cards.

0.2% is correct for like German girocard but for credit cards it's about 1.5%

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u/dapansen 10d ago

No, doesn't sound right. u/slasher-fun is right.

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u/Realistic-Crew5193 10d ago

3% is insane, are you sure about that value?

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u/Any-Platypus-3570 10d ago edited 10d ago

It varies but it's 1.5% to 3.5% (source). Sometimes it's like 25 cents + 2%. That's how they can offer the 2% cash back reward cards.

EDIT: These fees are typical in the US, not in Europe

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u/Several_Hour_347 10d ago

An American source for European fees? Lmao what

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u/Jam_Salad_is_my_Jam 10d ago

That really isn't relevant to a discussion about fees in Europe - where the cap is 0.2% for debit cards and 0.3% for credit cards.

However the cap can be as high as 1.25% for online purchases from outside the EEA.

Visa, MasterCard, and Amex still make loads of money here, btw. Capping their fees really doesn't hurt their ability to still be filthy profitable, it just stops them exploiting people and businesses.

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u/AR_Harlock 10d ago

In Europe is 0,3% max

-1

u/year2039nuclearwar 10d ago

Yeah it's more like 1.25% to 2%, it's only Amex that do 3% or more

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u/UnlikelyPollution715 10d ago

Not in EU but we pay around 1% for visa processing in NZ. Are you trying to say that a card processing fee is a sales tax? Or that there’s a separate tax ?

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u/LiquorIsQuickor 10d ago

It is an additional cost, like a sales tax,that is paid to an American company.

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u/UnlikelyPollution715 10d ago

A charge to a payment provider is not a tax lol. And 3% is way higher than most cases

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u/LiquorIsQuickor 10d ago

Right. Which is why I said “like a tax”. If it was a tax, I would have said “tax”

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u/Ring_Peace 10d ago

It's like a tip, you should give Visa 20%

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u/LiquorIsQuickor 10d ago

Can I choose to give less? Or none?

Then it’s not like a tip.

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u/charlie2charlie 10d ago

Right. He said "like a tip". If it was a tip, he would have said "tip"

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u/LiquorIsQuickor 10d ago

Boom. Nice call out.

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u/UnlikelyPollution715 10d ago

You literally said it was a sales tax in your first comment lol

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u/trito_jean 10d ago

and we could even give it an european name like "carte bleue"

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u/tipsup 10d ago

Not true, VISA europe is different than VISA USA.

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u/Any-Platypus-3570 10d ago

VISA Europe is wholly owned by VISA. So I'm not really seeing your point.

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u/laplongejr 10d ago

The error is here :  

 So Europeans have a 3% sales tax that goes directly to American companies.  

We don't, because CC fees are capped to a much lower minimum

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u/dadepu 10d ago

I hope the fees are capped to a maximum

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u/laplongejr 10d ago

Ehm yes right xD

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u/Any-Platypus-3570 10d ago

You are correct, I will edit my original comment.

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u/a_rucksack_of_dildos 10d ago

It goes to the European version that is beholden to European laws and regulations. The European version can also directly reinvest locally.