Where your money goes when you pay by card

A $100 card payment looks simple. Tap your card, wait for the beep, and the payment is approved. But behind that single transaction is a hidden network of banks, payment processors, card networks, fees, and settlement systems — and the merchant doesn't simply receive the full $100. In this episode of Hidden Margin, we follow the money behind a card payment and explain how authorization, interchange, processing fees, rewards, and settlement actually work. We also look at why different cards can cost merchants different amounts, how credit and debit payments differ, and why the economics of card payments look so different in the United States and Europe. Hidden Margin explores the hidden economics behind everyday life. Follow the money. Subscribe for more business and economics documentaries.