New American Express/MasterCard/Visa Dual Cards...

[basic]

Found an interesting article on ning. Raises a few points and gives some figures on what American Express charges merchants compared to Visa and MasterCard. Also mentions American Express's new entertainment platform...

Australian Loyalty and Rewards Programs

-Me

 

[oz_mark]

Interesting, but I wonder about this:

At the moment we are still seeing a surcharge for spending on the AmEx but here's hoping that will change once there is a big takeup of spending on the new cards. We have seen the merchant service fee American Express charges come down to 2%. However, this is still more than 4x that of MasterCard who charges 0.473% for standard consumer purchases, less on fuel.

Are there bank charges on top of the 0.473% for accepting a MasterCard. Where I see surcharges on Mastercard/Visa it is somewhat more than 0.473%.

 

[basic]

Interchange Category Interchange Rate (inc. GST)
Charities 0.00%
Tiered Merchants 0.374%
Governments and Utilities 0.33%
Petroleum 0.374%
Recurring Payments 0.33%
Quick Payment Service 0.33%
EMV Premium 1.265%
EMV Commercial 1.485%
EMV Consumer 0.693%
Commercial 1.265%
Consumer Premium 1.045%
Consumer Electronic 0.473%
Consumer Standard 0.473%

Doesn't look too nice here. But here's the link: Interchange Fees | MasterCard® Australia

 

[Alanslegal]

Australia needs a couple of those super banks in Singapore / Hong Kong to to set up some credit cards locally to really shake up the current competition. The credit card market is huge over there, and those card issues offer endless promotions, benefits, discounts for using their cards.

Seriously we are stuck here with surcharges, when in SIN or HKG they give you $$$ back ie. discounts to use their cards.

 

[Nutcase]

Australia needs a couple of those super banks in Singapore / Hong Kong to to set up some credit cards locally to really shake up the current competition. The credit card market is huge over there, and those card issues offer endless promotions, benefits, discounts for using their cards.

Seriously we are stuck here with surcharges, when in SIN or HKG they give you $$$ back ie. discounts to use their cards.

And do you know why?

The government legislates credit card limits in Singapore so the card companies said OK - Now everyone is platinum and therefore the interchange (and merchant service fee) is higher hence the promotions etc etc.

The rules around card acceptance is also different.

Unfortunately, someone has to pay - In Australia its the consumer (Thanks RBA), elsewhere its the merchant. Hence why Amex is so popular.

 

[dajop]

The credit card market is huge over there, and those card issues offer endless promotions, benefits, discounts for using their cards.

Seriously we are stuck here with surcharges, when in SIN or HKG they give you $$$ back ie. discounts to use their cards.

In relation to Singapore, sure there are lots of promos, benefits and discounts, but they are extremely complicated.

Some give you rebates for spend at particular chains, others at particular dept stores, others at particular brands of shopping centres, others at individual shopping centres. Then there those that offer discounts at certain restaurants and bars, some have discounts at high end brand stores, others get you priority entry into certain trendy places, others get you discounted cinema tickets at a particular chain on Fridays only, and the list goes on ... you need to know exactly what you want, and all too hard in the end!! I stayed with what I know and went with a mileage earning card with no discounts anywhere (or two, as they both came fee free in Y1).