Big retailers set to reap bank reform’s reward on cards – San Francisco Business Times


Here’s how interchange works: Every time you buy $10 worth of widgets, roughly 16 cents goes to the financial institution that issued your debit card. That interchange fee, negotiated between financial institutions and credit card networks like San Francisco-based Visa Inc., pays for the bank’s use of the network and for card reward programs as well as to cover losses from fraudulent card use.

READ ARTICLE via Big retailers set to reap bank reform’s reward on cards – San Francisco Business Times.

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