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Thread: No-fees business model gutted: Baggage Fees and Other Changes
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Old Mar 18, 2025 | 11:37 am
  #344  
joshua362
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Originally Posted by sunpass
What gain does Southwest get out of taking in the baggage fee from a Southwest card holder only to then refund it? Someone mentioned “swipe fees” but how would that apply here?
As a merchant, "swipe fees" can vary (3+%-7% ALL IN) and ARE NOT REFUNDED when you give money back. And there are fees on top of fees, that have to be shared between at least 3 entities. PayPal too. I'm sure WN has the very best rate but there is still a cost, they (CC processors) don't work for free.

Perhaps they estimate that cost of the fees is less than the cost of changing/implementing a new system. Hard to believe though. Seems like its an easy flag,

=IF (RR # has a WN Chase card, THEN waive bag fees, ELSE charge bag fees)

. WN & Chase move RR points at least monthly, they know who has an active card. Ponderous.
Last edited by joshua362; Mar 18, 2025 at 5:13 pm
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