How to get around merchant fees?
Merchant fees are so ridiculously high and I don't understand why. This is mostly for credit card fees which are often 2-3% per transaction. It's insane. Has anyone tried building an alternative payments solution? Why didn't it work?
4 comments
Cryptocurrency has fees higher than cash/check, lower than credit cards, but on-chain transactions (e.g., BTC, not LN) tend to have a clearing time longer than both cash and card.
because they can. because of a monopoly.
you can accept alternative payments like cryptocurrency or venmo or something, but let's face it, most customers prefer to pay with a credit card. that's how monopolies work.
you can accept alternative payments like cryptocurrency or venmo or something, but let's face it, most customers prefer to pay with a credit card. that's how monopolies work.
ACH is cheaper but the onboarding UX is worse. Maybe FedNow will solve this but probably not.
"Cash or Check"
Decades ago, for large companies, another traditional way to dodge merchant fees was to have your own $Company_Name credit card. (Which was not a "branded" Visa or MasterCard, but their own exclusive payment networks & systems.)
Decades ago, for large companies, another traditional way to dodge merchant fees was to have your own $Company_Name credit card. (Which was not a "branded" Visa or MasterCard, but their own exclusive payment networks & systems.)