[worstestes]

"Costco's credit card policy is all about saving money. It negotiates a partnership agreement with a single payment network in exchange for much lower processing fees. As part of its current deal with Visa, it pays transaction fees of only 0.4%. By saving on fees, Costco is able to keep prices low."

https://www.fool.com/the-ascent/credit-cards/articles/why-do...

They actually secure a very nice low rate via their credit card policy

[xnorswap]

By not demanding better legislation, you're still being ripped off. What you describe as a "very nice low rate" is higher than the legislated EU wide limit.

https://eur-lex.europa.eu/EN/legal-content/summary/fees-for-...

[dahfizz]

But I get minimum 2% cash back when I use my card. Prices are 0.4% higher because of the fee, but I still come out way ahead. You can easily get 5% back on gas, groceries, Amazon purchases, etc. American credit cards are awesome if you know how to use them.

[_aavaa_]

> I get minimum 2% cash back when I use my card. Prices are 0.4% higher because of the fee, but I still come out way ahead.

You, and people who use such cards, do. But everyone else is having to pay for your cash back.

[dkjaudyeqooe]

Funny thing is I'm still getting between 3% and 5% cashback on my US cards that I use in the EU. Those interchange fee limits are probably EU issued cards only.

[madsbuch]

That is probably your card issuer loosing money because US cards used in Europe is a small enough segment to not demand any policy changes.

In particular the articles talks about exemptions:

> provides for a limited number of exemptions, such as business cards used only for business expenses being charged directly to the account of the company;

[hartator]

In EU, credit card processing is way more than 0.3%.

[nwiswell]

Fascinating. Visa-subsidized gold I guess.

[acatton]

Don't worry, Visa isn't subsidizing anything. At 0.4% they're most likely still making money, at a low margin, but still taking home a profit.

Credit card transaction fees in Europe are capped at 0.30%[1] and visa operates here.

[1] https://eur-lex.europa.eu/EN/legal-content/summary/fees-for-...

[lotsofpulp]

Visa never takes on any risk, the card issuing bank would be subsidizing, if that.