Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Mastercard Sets Its Interchange Fees
Lucas and Luna unpack the hidden pricing engine behind every credit card swipe: interchange fees. They walk through how Mastercard sets rates, why merchants pay 1.5 to 3.5 percent per transaction, and how the network balances the interests of banks, merchants, and cardholders. The hosts use concrete examples like a $4 latte and a $400 airline ticket to show how interchange works in practice, and they discuss recent regulatory pressure in Europe and the US that could reshape the model. Lucas explains the 'honor all cards' rule and why it locks merchants into accepting premium rewards…
The skinny
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