How credit cards make money

Post by Smashure » Sat, Nov 06, 2021, 12:29 PM UTC

causi wrote: post #315

treyfitty wrote: post #234

One of the under appreciated legal precedents set a couple years ago was the Ohio V AmEx anti trust case. The case predicated against AmEx’s merchant contract forbidding merchants to steer customers away from using their Amex card. This was a common practice for many years, especially at restaurants since AmEx charged restaurants 6%. The Supreme Court ruled that amex was able to keep the anti-steering provision in me…

Sounds like a bad thing to me. Why not offer the service to retailers for free and then make your money by charging interest on unpaid customer debt? Making retailers cover the operating costs of your moneylending business just seems like bullying.

Post by madeofpalk » Sat, Nov 06, 2021, 12:34 PM UTC

treyfitty wrote: post #234

One of the under appreciated legal precedents set a couple years ago was the Ohio V AmEx anti trust case. The case predicated against AmEx’s merchant contract forbidding merchants to steer customers away from using their Amex card. This was a common practice for many years, especially at restaurants since AmEx charged restaurants 6%. The Supreme Court ruled that amex was able to keep the anti-steering provision in me…

Post by samjmck » Sat, Nov 06, 2021, 12:57 PM UTC

sofixa wrote: post #365

nottorp wrote: post #214

Earlier quoted context omitted.

> In Europe, regulators were worried about the cost of interchange to businesses (rather than consumers) and capped it. Hmm not everywhere. I recently went to the Netherlands and was surprised to see not everyone accepted credit cards - while they do accept (local) debit cards. My cards are Romanian, so you can't blame US banks. In one small store they explained to me that accepting Visa/MC would cost them 10%, which…

The Netherlands is an outlier. They say they don't accept credit cards, but actually they mean they don't accept Visa and MasterCard, regardless if it's credit or debit. Maestro is the network most used locally. However, it's gotten drastically better in the past few years, with at least the bigger stores accepting Visa/MasterCard now.

Post by floatboth » Sat, Nov 06, 2021, 1:02 PM UTC

Fnoord wrote: post #155

nostromo wrote: post #91

Earlier quoted context omitted.

I got burned by Aliexpress and now I highly recommend people use credit cards for all purchases. I had a debit card saved on Aliexpress. The account was compromised by unknown means (maybe public wifi). Someone bought several $1,000+ phones from China that shipped to me in the US. I presume the sellers were in on it and were selling me unwanted inventory at inflated prices. Because they had tracking information, my b…

You can save your debit/credit card, just don't save the CVV (if it is static). My debit card provider also has a feature to randomizes CVV every 5 minutes ie. for every purchase (I can enable or disable the feature). CVV is mandatory for online usage of debit/credit card. The same provider also give 25 IBANs per account. I could, for free, put 25 virtual debit cards on them, and have the IBANs empty unless I put mon…

Post by totony » Sat, Nov 06, 2021, 2:10 PM UTC

makeitdouble wrote: post #362

quantified wrote: post #317

Earlier quoted context omitted.

Then, politeness suggests you ask if you’re thinking about it.

It’s an interesting approach, as you wouldn’t enter a restaurant and ask what dish would make them the most margin. Or go to the post office to ask what packaging is cheaper for them to ship. In that respect I think asking what payment means costs more to the shop would break a social norm, so I’m surprised you file it under politness. Otherwise shop owners have many many ways to signal how much they want you to do s…