Big banks have profit margins in this economy of over 30%. Why are banks making so much money? It's because they profit off of something called a swipe fee and interchange fee. Every time you use your credit card, Visa or MasterCard, they charge the merchant what is essentially a service fee. The merchant pays a fee of 2 to 3% on each transaction, meaning if you spend $100, the merchant gets 97 or $98. (06:39–06:47)
CLAIM
Asserts that Visa and MasterCard charge merchants a service fee for credit card use.
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