1. Even in regulated markets like Europe, you’ll note that it’s still a percentage of the transaction value, not a fixed cost.
2. In EU, while Interchange is regulated, Scheme fees, Acquirer fees, and Processor fees are not. These are usually also expressed as percentage of the transaction value.
3. Because of the more limited avenues to offset risk, access to credit in EU is more difficult than in more dynamic markets like the US (not saying it’s good or bad, just highlighting that there are downstream impacts).
2. In EU, while Interchange is regulated, Scheme fees, Acquirer fees, and Processor fees are not. These are usually also expressed as percentage of the transaction value.
3. Because of the more limited avenues to offset risk, access to credit in EU is more difficult than in more dynamic markets like the US (not saying it’s good or bad, just highlighting that there are downstream impacts).