3 ms·
> and that's assuming that VISA, et al. wouldn't just lower their rates They easily could, their current rates contribute a lot toward cashback and points rewa
by krrrh 9y ago
> and that's assuming that VISA, et al. wouldn't just lower their rates
They easily could, their current rates contribute a lot toward cashback and points rewards and other marketing programs. Australia regulated a cap on rates at 0.4% iirc, and Visa still covered its costs.
- acdha 9y agoTheir profit margins seem like a good estimate for how low they could go without much pain, and given the size of the revenue stream I’m sure they could go lower.
- krrrh 9y agoIt’s not just their profits because they spend a good portion of their revenue on customer acquisition and retention. We may have a more stable economy if there was less customer acquistiin in the consumer credit space.