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Take the credit card swipe versus chip example. The chip is an improvement over the really old swipe tech in theory. In the US, using the chip is a terrible exp
by hbarka 9y ago
Take the credit card swipe versus chip example. The chip is an improvement over the really old swipe tech in theory. In the US, using the chip is a terrible experience because it takes a lot longer for the process to complete. Why? Because merchant processors have no interest in putting the chips on a fast network because they can get higher fees on the swipe and conversely the stores are charged higher fees for enabling the chip. There you go. There's the moral question and the profit question all in a real example that didn't improve the experience for the end user.
- usaphp 9y agoThe faster the lines are moving - the more transactions per day can a store process, thus more fees for processor. I don't see a logical reason for processors to artificially slow down payment process just for a tiny fee difference, no? plus they theoretically get less chargebacks and fraud activity with chips.
- zanny 9y agoExcept the cost of slow transactions is not eaten by the payment processor. The store just has to add more checkout lanes or clerks. The payment processor also never gets blamed - if the process is slow, the customer just blames the store.
- usaphp 9y ago> the cost of slow transactions is not eaten by payment processor. > if the process is slow the customer just blames the store. If the customer does not like long lines and slow transactions in a store - they will leave, and the processor will see less revenue from fewer transactions because of that
- zhte415 9y agoThere are only 2 card payment networks of worth and most cutomers have cards from both. They don't care.
- TACIXAT 9y agoThe chip is a security measure. My understand is that it is slow because the chip is doing a computation and it is not very fast.