Vattené wrote:I don't know enough about it to provide much more information - just that it is complicated and varies by merchant based on the agreement into which they enter.
This is pretty much why a company like Square can exist. It is a simple way for a business to process credit cards without having to deal with contracts and agreements.
Curious123 wrote:Can you provide some examples how 3% fee is split in real life?
As was mentioned before, the simplest way that 3% is split is between 3 parties. But it can be even more than that, or might not include payments to other parties such as a flat fee per swipe, percentage of the charge, or a monthly fee. Honestly, unless you have a very intimate understanding of a particular merchant, their agreement, and the sale, it is impossible to even take a guess.
Curious123 wrote:Unfortunately I'm not familiar with AMEX, but it seems that there is no difference between AMEX and i.e. VISA/MC. I consider both as payment networks.
Amex is a payment network, but they are also a bank. So they authorize the transaction and process it over their network. This is the same as Discover. Visa and MC are not banks themselves. There are thousands of banks worldwide that issue cards that utilize the Visa/MC payment network. For the end user it makes no difference. But for Amex, Discover, Visa, and MC there is a difference in how much money they get from a given transaction.