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What's the risk if payments were to be debited from the customer's bank directly? Related side note: I've always wondered, if people don't ever need the "credi
by i2shar 8y ago
What's the risk if payments were to be debited from the customer's bank directly?
Related side note: I've always wondered, if people don't ever need the "credit" in the credit card transaction, could they get a discount of 2 odd % on each transaction that the CC companies charge, say if they connect their bank accounts directly to they payment methods? This would effectively a debit card but not using the VISA/MC networks. What's stopping Apple/Google pay from processing payments directly from my bank?
- docker_up 8y agoAlmost none. PIN/passwords render fraud to negligible amounts. That's why debit card transaction have fees for ~$0.10 under Durbin. Companies like Stripe make a killing whenever their customers use debit cards instead of credit cards because they're charging 2.9 +0.30 with a cost of 0.10. But if you had to rely on debit cards only, then commerce at least in the US would grind to a halt. I believe the average American CC debt is ~$8000.