Originally Posted by Kixo
Also, Since Diners Club does not receive interest revenue on revolving balances (Montage excepted), it needs to have a healthy revenue stream from merchant fees and cardmember annual fees.
Keep in mind that merchants are generally charged other fees as well. These may be "hidden" as equipment rental, communication and monthly "processing" fees. Often, when you see a rate quote, it is without these "extras". For a small customer (say a convenience store) these charges can easliy add 1% or more to the discount rate. Generally, the same equipment can be programmed to work with Diners and Amex, avoiding some of the add-ons.