101–110 of 317 posts
The credit card duopoly is another instance where the EU has done a good job with regulation, but everyone just takes it for granted until they’re reminded how much worse the rest of the world has it. In the EU, card payment fees are capped at 0.2% for debit cards and 0.3% for credit cards. In the US, these interchange fees are about 2%. US businesses pay over $100 billion annually in these fees to card networks. If…
People always cite the first-order benefits of this regulation but don't look into anything else. To be clear, I haven't either but what I would look for is: - are real prices cheaper for consumers? - is economic activity higher or lower (i.e. maybe credit cards encourage purchases?) - does making credit cards a less lucrative business lower credit card penetration? - is lowering credit card penetration, particularly…
Why do you have this particular suspicion when you claim you haven't actually looked into ~any of the questions you raised?
Brazil central bank introduced Pix a few years ago. It took over the country as the public basic infrastructure for money transfer. Totally free and instantaneous transactions between people and companies, available to all banks. Then, just last week, the US presidency launched an investigation considering Pix an unfair trade practice against the US. Actions like that may show the current direction of the US governme…
The credit card duopoly is another instance where the EU has done a good job with regulation, but everyone just takes it for granted until they’re reminded how much worse the rest of the world has it. In the EU, card payment fees are capped at 0.2% for debit cards and 0.3% for credit cards. In the US, these interchange fees are about 2%. US businesses pay over $100 billion annually in these fees to card networks. If…
People always cite the first-order benefits of this regulation but don't look into anything else. To be clear, I haven't either but what I would look for is: - are real prices cheaper for consumers? - is economic activity higher or lower (i.e. maybe credit cards encourage purchases?) - does making credit cards a less lucrative business lower credit card penetration? - is lowering credit card penetration, particularly…
It doesn't, EU uses card payments much more than the US. So end of discussion there, it got cheaper with no negatives, just positives.
Earlier quoted context omitted.
Is there information on EU vs US credit limits? How do the account fees compare between EU and US?
I was really surprised that it was normal to have account fees in the US. In the UK banking is free, at least until you hit an overdraft charge. They even made Bank ATMs fee free whatever bank you are with around 2000 (non bank ATMs still have a charge.)
Actually, you can get no fees at any ATM
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My banks pays me more than that per month to use their debit cards.
So are you the product at your bank or why would they pay you to use their services?
And then the fact that banks and card companies are charging merchants a fee for transactions and have margin to give back some of those fees to the customers.
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why not crypto? stablecoins could be a credible answer to this problem
Not with the new acts passed this last week. Only established players are in that space now (Also - this is going to get way worse now with fees devaluing the dollar that are now invisible to the average consumer).
Earlier quoted context omitted.
So are you the product at your bank or why would they pay you to use their services?
Fractional reserve banking. Banks would even pay interest on money you had in your account in times past. And then the fact that banks and card companies are charging merchants a fee for transactions and have margin to give back some of those fees to the customers.
Earlier quoted context omitted.
> Right now, the only thing that makes credit cards a better proposition is being able to pay without having enough money in the bank It will not take long. Banks are already offering products with credit on top of the Pix. Furthermore, contactless Pix is now available in Android phones. If we look from the financial and usability aspects, Pix will continue eating the credit card market share. I didn't know Thailand…
About half of the world population has access to some sort of QR based payment system nowadays. India has UPI, China has Ali and Wechat pay. Almost everyone in these two countries can go weeks without having to use cash. In South East Asia, Vietnam is leading QR payments. I live in Ha Noi, and I only carry VND equivalent of $15-20 with me, and it sits in the wallet for ages. Everything from gas stations to restaurant…
Brazil central bank introduced Pix a few years ago. It took over the country as the public basic infrastructure for money transfer. Totally free and instantaneous transactions between people and companies, available to all banks. Then, just last week, the US presidency launched an investigation considering Pix an unfair trade practice against the US. Actions like that may show the current direction of the US governme…
Can anyone please steel man the opposition argument for Pix?