Ask HN: Why do payment processors charge a percent fee on transactions?
3 comments
The higher fees subsidize the lower ones. If it were flattened, people wouldn't want to do smaller transactions because the fees would be too high by proportion.
More profit to charge a higher fee on larger transactions.
Someone has to foot the bill for credit card rewards
In my opinion, the thing that drives cost for payment processors is the number of transactions, not their amount, so wouldn't it be fair to charge customers based on that?