twenty-five percent i want to pay eight nine ten Adelaide Small Business Accountants percent so they might go for a car that doesn’t have any rewards attached to it then of course we have rewards cards rewards one or when they’re swipe rewards to you’re going to find in this pack today
that it has a higher reward and that’s because deed versus swiped then of course you have your signature preferred cards you have commercial cards and you have your p cards those are also card procurement cards so you might say well why Andy is the interest or the interchange so high on commercial cards procurement cards and signature cards because these all you know these are handed to corporations who typically don’t abuse credit card they’re not going to really
go bust on on the issuing bank and that’s very true so the commercial cards p cards and the signature preferred for those folks with those high FICO scores really manage your money well have high balances those three card types typically get paid off every single month so they don’t carry a balance so the issuing banks don’t really make a lot of interest or can’t charge a lot of interest on those cards so their only way to make up for some of that money that they’re not making by the interest gathered on the front end is charged a higher interchange
on the back into the merchants so the merchants who accept those p cards commercial cards are actually going to pay a little bit higher interchange even though there’s going to be less risk tied to that on that transaction due to being provided by a corporation so let’s talk about interchange who the roles are who gets what so we have the merchant
the merchant pays interchange the acquirer that’s us we collect that interchange and we’re going to send that to the issuing bank or the issuing financial institution that provided the card to the consumer that’s using it at that establishment
