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>Payment is still instant unless there is a dispute If that was the case a merchant could withdraw cash immediately after someone paid them with a credit card.
by DINKDINK 9y ago
>Payment is still instant unless there is a dispute
If that was the case a merchant could withdraw cash immediately after someone paid them with a credit card. Which patently isn't the case. So no, Payment cards are not instant.
- bduerst 9y agoThe payment happens and confirms instantly. Withdrawal of funds from the payment processor is not the payment, because payments are not limited by 'time to cash liquidity'.
- nrhk 9y agoRight and is there a problem with making our world more liquid?
- bduerst 9y agoNobody said there was.
- DINKDINK 9y ago>The payment happens and confirms instantly. Let's say that merchant accepts payment via Visa on Day 1. On Day 2, Visa goes out of business. The merchant will never receive the payment. So no the payment is not instantaneous. The merchant receives an IOU from Visa that settles in a few days. IOUs != settled payments.
- bduerst 9y agoYes, in your carefully crafted hypothetical where a billion dollar company goes out of business tomorrow, it means that company can't make payments tomorrow. What about nuclear winter? Dissolution of the U.S.? Alien invasions? We need account for these hypotheticals too when discussing the validity of payments.
- DINKDINK 9y agoThe delay event(bankruptcy, Visa’s servers go down for an hour) is meaningless. The point of debate is “Is the payment settled?”. To which the answer is a simple “no”.
- deleted 9y ago[deleted]