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> Card-not-present accounts fetched a much steeper supplier commission of 80 percent, but mainly because these cards were in such high demand and low supply. S
by mysterypie 6y ago
> Card-not-present accounts fetched a much steeper supplier commission of 80 percent, but mainly because these cards were in such high demand and low supply.
Some part of that statement doesn't make sense. Normally if something is in high demand, then it is easier to sell it, therefore the seller can demand that the middleman i.e., BriansClub, accept a lower commission. In real estate for example, when there is a lot of demand for houses (in a "sellers' market), you as a seller can easily negotiate a lower commission from your brokerage agent.
One clarification: When there's high demand and low supply, the end-buyer will pay a much higher price of course. But the middleman (like BriansClub) should be charging a lower commission as a percentage, though he or she might end up making more money because it's a higher priced item being sold. So Krebs's explanation of why they charge a higher commission for card-not-present doesn't make sense.
- alextheparrot 6y agoMy reading was that the card sellers had "negotiated" (Market equilibrium) a higher commission, meaning that the card sellers do get more money (Which makes sense, as the supply/demand for what they are selling is more in their favor).
- Donthatme 6y agoI read it as [BriansClub] pays 80% of the sale to the hackers for that data.
- superhuzza 6y agoYou're getting it totally backwards here. The supplier commission is how much of the card's value BriansClub is paying to the supplier: "On average, BriansClub paid suppliers commissions ranging from 50-60 percent of the total value of the cards sold." High demand + low supply of these cards means that the suppliers are getting a better "price" when selling them to BriansClub, the middleman.
- mysterypie 6y agoYou are right, thank you. It’s a non-standard way they used the word commission.