But what Sears pays to Whirlpool Corporation is the price of the product without the margin. Sears sets its own margin. It goes into the marketplace and has discount sales to attract customers into its stores.
What Whirlpool will never say to Sears is, you must charge a $150 margin on a $1,000 washing machine. But MasterCard is telling the Bank of Montreal they must charge this intercharge rate, regardless of what the market will bear, and then pass along to MasterCard a separate and distinct fee from the interchange rate.