travelnutjohn
Member
- Joined
- Feb 11, 2018
- Posts
- 307
So using my back of the napkin analysis
If the majority of customers are using it for amex and rewards points. Post april unless these companies drop their rates by half ish, the huge chunk of revenue will drop , to as low as nothing.
But if amex dont reduce their merchant fees to these providers, then the model is not profitable?
And unfortunately these companies' business model is based on a niche one trick pony, so are at the mercy of rewards points values and merchant fees?
If the majority of customers are using it for amex and rewards points. Post april unless these companies drop their rates by half ish, the huge chunk of revenue will drop , to as low as nothing.
But if amex dont reduce their merchant fees to these providers, then the model is not profitable?
And unfortunately these companies' business model is based on a niche one trick pony, so are at the mercy of rewards points values and merchant fees?