5 ms·

Amex and Discover are different as those are closed-network. I think it's really hard to argue Visa/MC is not a duopoly. Unfortunately anti-trust enforcement i

by tempsy 7y ago

Amex and Discover are different as those are closed-network. I think it's really hard to argue Visa/MC is not a duopoly. Unfortunately anti-trust enforcement in the US has been more political than anything.

metalliqaz 7y ago
closed network?
- awinder 7y ago
  You only get discover & Amex cards from those companies whereas Visa & MasterCard are networks that other people can “buy into”, ie your bank card (or credit card offered through a bank). IMO not super relevant to topic of competition, there’s 4 networks, the fact that two of them are structured differently doesn’t really have impacts on sellers & customers (other than that the two open networks are significant larger, visa & MasterCard)
  - astura 7y ago
    This isn't quite true, I have a BVAA credit card that uses the AMEX payment network and I used to have an FIA Card Services credit card that used the AMEX payment network (the old Fidelity credit card)
    - awinder 7y ago
      You’re right, it’s weird, American Express has literature where they talk about being a closed loop network and apply that definition. Maybe it’s more appropriate to just say that visa and MasterCard don’t directly offer credit cards.
  - gtk40 7y ago
    There are starting to be a lot of Amex network cards are offered through other banks, with everything from Wells Fargo to Credit One (the first is one of the largest in the country, and the second is a basically a scam). Discover also does this, although there are less available. Here is an example through Comenity in partnership with True Value: https://d.comenity.net/truevaluediscover/pub/Home.xhtml https://d.comenity.net/truevaluediscover/pub/Home.xhtml They used to do something similar for a card with Wal-Mart.
sbahr001 7y ago
I would say this is an example where a duopoly is useful for consumers. The duopoly allows consumers the ability to use a credit card pretty much anywhere they want in the US; This is pretty convenient if you use a credit card responsively. It is also a better solution than the old days where you would have store cards or a store account. (I am not saying the duopoly is great because these companies are a massive headache for businesses, and increase the cost of things)
- thesimon 7y ago
  >I would say this is an example where a duopoly is useful for consumers. The duopoly allows consumers the ability to use a credit card pretty much anywhere they want in the US Going by that reasoning a monopoly would be even better, as the card would be accepted everywhere. The consumer pays by lack of innovation and high scheme fees.

by tempsy 7y ago

metalliqaz 7y ago

closed network?

awinder 7y ago
You only get discover & Amex cards from those companies whereas Visa & MasterCard are networks that other people can “buy into”, ie your bank card (or credit card offered through a bank). IMO not super relevant to topic of competition, there’s 4 networks, the fact that two of them are structured differently doesn’t really have impacts on sellers & customers (other than that the two open networks are significant larger, visa & MasterCard)
- astura 7y ago
  This isn't quite true, I have a BVAA credit card that uses the AMEX payment network and I used to have an FIA Card Services credit card that used the AMEX payment network (the old Fidelity credit card)
  - awinder 7y ago
    You’re right, it’s weird, American Express has literature where they talk about being a closed loop network and apply that definition. Maybe it’s more appropriate to just say that visa and MasterCard don’t directly offer credit cards.
- gtk40 7y ago
  There are starting to be a lot of Amex network cards are offered through other banks, with everything from Wells Fargo to Credit One (the first is one of the largest in the country, and the second is a basically a scam). Discover also does this, although there are less available. Here is an example through Comenity in partnership with True Value: https://d.comenity.net/truevaluediscover/pub/Home.xhtml https://d.comenity.net/truevaluediscover/pub/Home.xhtml They used to do something similar for a card with Wal-Mart.

sbahr001 7y ago

I would say this is an example where a duopoly is useful for consumers. The duopoly allows consumers the ability to use a credit card pretty much anywhere they want in the US; This is pretty convenient if you use a credit card responsively. It is also a better solution than the old days where you would have store cards or a store account. (I am not saying the duopoly is great because these companies are a massive headache for businesses, and increase the cost of things)

thesimon 7y ago
>I would say this is an example where a duopoly is useful for consumers. The duopoly allows consumers the ability to use a credit card pretty much anywhere they want in the US Going by that reasoning a monopoly would be even better, as the card would be accepted everywhere. The consumer pays by lack of innovation and high scheme fees.