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June 28th, 2011 09:31 PM #1
Like in HSBC, free Starbucks coffee with 1 add-on for every P/2,000.00 charge slip.
How much does the credit card company earn for every 2K transaction?
A starbucks coffee costs around P160-P180.00 plus the add-on of P25.00.
I know that the card company doesn't pay starbucks the full retail price of their coffee,
but assuming they pay P100.00 per coffee. That will be 5% of 2K.
The card company deducts just around 3.5% from the merchant where you swipe your card.
So it's like they're losing 1.5% of 2,000.00 for every coffee that you redeem.
Yes, not all transactions will be just 2K, some will be a lot more. But a lot of cardholders are taking advantage of this promo and requesting merchant stores to multiple swipe their cards into 2K each.
So how does HSBC benefit from this promo?Signature
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