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> Credit cards companies charge businesses that allow consumers to use them a fee. Business often pass this fee on to the consumer, sometimes even explicitly. F
by takeda 5y ago
> Credit cards companies charge businesses that allow consumers to use them a fee. Business often pass this fee on to the consumer, sometimes even explicitly. For example gas stations usually publish separate prices for gas w/ or w/o credit card. That fee is the main revenue source for the credit card company, and fraud reimbursement is one of their expenses. Expenses go up? Fees go up. In this way businesses (and less directly you) are paying an insurance premium on top of the credit card company's operating costs and profit margin.
With bitcoin you have both: high fees and no fraud protection.
> Credit card companies most likely write fraud reimbursement off when filing taxes. So taxes that they would otherwise pay vanish. If the taxing entity wants a minimum tax revenue, that means increased rates elsewhere (and quite possibly for individuals).
So what you saying this is better, because when fraud happens you (an individual) can't deduct it from your taxes?
I think the arguments are very weak, much stronger would be that government can't supposedly stop you from paying or receiving payments, but they still can do it in other ways (like prevent converting the money or physically get you).
I think though that (at least for me) ability to reverse charge to stop fraud is more valuable than the above.
- grog454 5y agoI'm really arguing for discourse, not one side or the other. I've used charge backs multiple times. But after thinking about it a while I realized that I've probably paid more in this hidden premium than I've recovered from reimbursement. Until COVID hit and I had to refute multi thousand dollar plane tickets that were never able to be used. Will I have paid more for the premium or less by the end of my life? No idea. What it ultimately comes down to is the value, role, and scope of insurance. That's a massive debate of its own.
- vel0city 5y agoSo far in my life I haven't come close to breaking even on my car liability insurance. I haven't filed a single claim on my home insurance. I guess it's a wise decision to cancel these. Instead I should just try harder to not have my house destroyed in a storm or have an auto accident.
- grog454 5y agoYou absolutely should try harder to not have an at-fault auto accident for your and other people's sake. I'd also recommend having massive dying trees cut down near your house. I've used a 2% cash back credit card for the last 5+ years. If the CC Company offered to make it 3% in exchange for reduced or inhibited fraud insurance I would seriously consider it. I've also foregone health and home insurance in some instances. But I appreciate that risk assessment is absolutely not for everyone.
- vel0city 5y ago> I'm also foregone health and home insurance in some instances. Why do you bother with either? Just try harder to not get sick and try harder to not have your house burn down. Are you not actively trying as hard as you can to prevent your house from getting destroyed? Are you not trying to stay healthy?