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Why can't this law be introduced everywhere else. It makes no sense to pay so much for simple payments.
by amedvednikov 5y ago
Why can't this law be introduced everywhere else.
It makes no sense to pay so much for simple payments.
- arcticbull 5y agoMost of interchange goes to the issuing banks to pay for loan origination, defaults, chargebacks and most significantly reward programs. The EU doesn't really have comparable credit card based reward programs since they can't fund them with the smaller interchange. It's kind of six of one, half a dozen of the other.
- ksec 5y agoIn countries without these regulations Visa and Master argued most of these processing fees goes back to customer as cash back or gift or other forms of benefits. In the AUS and EU ruling the court simply decided that is not a business model being accepted in the market. And tell them to put out a fair price of payment processing. And most of the payment in EU are still done via Debit Card or something similar so they have less leverage. Along with high level of fraud in US credit card compared to EU.