Aren't debit transactions capped at 0.2% in the EU and credit 0.3%?
replyNo, those are caps on the interchange fees paid to the issuing bank. Card transactions have other fees as well.
replyThat is true yes. The interchange fees tend to be the largest component though. The ECB reports that the average transaction cost of debit is 0.44% [1]
reply[1]: https://www.ecb.europa.eu/euro/digital_euro/timeline/profuse...
in the EU, yes, but not in India with UPI ;-)
replyMost US debit cards are 0.1%. Credit cards have to give the user a 0% loan for 60 days, someone has to pay for it including debt write offs. Can't compare a debt product with a cash product.
replyVisa & MasterCards actual take is way lower than that. The fees that merchants see on cards are mostly collected by the banks - "interchange".
reply> Hopefully they allow foreigners some track to access UPI in the future.
replyNot cheap and only to business QR codes (so proper shops which probably will take credit card anyway), but it works.