Archive of UserLand's first discussion group, started October 5, 1998.
Re: Why Stephen King is cool
Author: Mark Alexander Posted: 7/26/2000; 9:40:52 AM Topic: Why Stephen King is cool Msg #: 19110 (In response to 19085) Prev/Next: 19109 / 19111
As someone who works in the Credit Card business, I can state that $1 transactions for a large transaction shop is not expensive. The way bank cards work is that the banks pay the retailer for the charge minus a discount rate (usually of about 2% for bank cards). So for each $1.00 transaction, the retailer will get $0.98. Amazon due to their high volume probably gets a rate lower than 2%. The penalty for small transactions comes in that during any month bankcards want the average tranasction to be over a specific level like $15.00. If it falls below that rate, the bank usually raises the discount rate and can also charge the retailer a fee. Since the $1 King offer is a rather small percentage of Amazon business and the typical transaction is well over a typical level of $15.00, I am sure that their bank is not going to change the discount rate or charge Amazon any penalties.
There are responses to this message:
- Re: Why Stephen King is cool, Paul Snively, 7/26/2000; 12:16:37 PM
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