Ye, well agree I get that. But the price of the banks services is in no way justified by the value added?
A 2% card fee is 24 minutes off a 40h work week spending half your wage with card. It's like going to the physical bank and withdrawing money saves you time if you are near by anyways (pretending the card fee was added to the recipes as a cost).
If you make 1000 USD a week, that's 10 USD or having 20 letters sent all over the country being delivered by hand every week.
Card purchases are not being manually reviewed by the bank anymore like the old photo copy ones, but we still pay for it.
It's just insane how this arcaic system prevails and how much profit can be squeezed out off it.
I guess with card fee's the main problem is that the consumer is not paying it directly, and the companys don't have the guts to openly put the cost on the consumer.
To me, it sounds like getting fast food and being amazed at how much the french fries and soda are selling for compared to the cost. Businesses don't make equal profits on everything they do, and most businesses have a lot of overhead that isn't directly linked to transactions, but is just the basic necessity to even be in business.
So I think your intuition that the fees aren't linked directly and proportionally to services is correct, but that's true of all businesses and it doesn't mean the profits are unreasonable overall.
Credit cards, at least in the US, rebate up to 2% or so of fees back to some customers, so they aren't charging all that much for their services.
Credit unions and banks that I've dealt with provide basic services like checking for the price of the float on your deposits, which has to be extremely small these days.
A 2% card fee is 24 minutes off a 40h work week spending half your wage with card. It's like going to the physical bank and withdrawing money saves you time if you are near by anyways (pretending the card fee was added to the recipes as a cost).
If you make 1000 USD a week, that's 10 USD or having 20 letters sent all over the country being delivered by hand every week.
Card purchases are not being manually reviewed by the bank anymore like the old photo copy ones, but we still pay for it.
It's just insane how this arcaic system prevails and how much profit can be squeezed out off it.
I guess with card fee's the main problem is that the consumer is not paying it directly, and the companys don't have the guts to openly put the cost on the consumer.