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>but hard to sell to merchants, since the merchant pays fees. There is a nice article which hopefully somebody can link that explains that visa was a success b
by toohotatopic 6y ago
>but hard to sell to merchants, since the merchant pays fees.
There is a nice article which hopefully somebody can link that explains that visa was a success because merchants reduced their costs, too. They had to do informal credit accounting for all their clients who only paid for the purchased goods once a month. With visa, that accounting position, which could be a full-time employee, wasn't needed any more. Furthermore, they reduced their risk of clients defaulting on those micro loans.
- RcouF1uZ4gsC 6y agoThe other thing credit cards did is reduce the risk of employee theft and even armed robbery. There is also a time savings. You don’t need employees counting and recounting the cash with witnesses when the cashier changes. Cash needs to be physically secured. A cash register full of credit card receipts is pretty worthless.
- mdszy 6y agoWhat? Cash didn't immediately disappear the moment credit cards came around.