Apple has begun talks with Israeli banks and credit companies in Israel, as it works to bring Apple Pay to the country. However, the commission fee could cause a problem.

Israeli financial institutions were not keen on Apple’s commission fee, which falls somewhere between 0.15% and 0.25% of each transaction. This works out to roughly one quarter to one-third of the credit card issuer’s revenue from the transaction, a hefty cut from an already relatively small fee. “It is disproportionate, and constitutes an exploitation of its status and power,” says a source familiar with the situation. While this may slow down talks, it should not be seen as definitive in any way.

Check It Out: Negotiations to Launch Apple Pay Taking Place in Israel

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