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> There's no reason for credit card users to spend time protecting the bank's money like that - credit cards are not your money and their security is not your p

> There's no reason for credit card users to spend time protecting the bank's money like that - credit cards are not your money and their security is not your problem. Who do you think ends up picking up the bill for all the money the banks lose due to sloppy security? I can guarantee that no bank CEO was ever forced to buy a smaller yacht because they lost too much money to fraud. All of those costs get passed onto consumers in the form of crazy high transaction fees, up to 10x higher than the EU, and an insane list of bank fees for so much as sneezing wrong in a bank branch. You might personally no care about protecting the banks money, but neither are they, because they’ll just find a creative way to collect new fees to cover the cost. Not a cent will come out of their profit margin.

astrange 4y ago
By "bank" I mean the credit card issuer, which is a fairly competitive industry and isn't necessarily your main bank. I think people are pretty aware of what fees their cards have. (IME businesses that take cash are mostly doing it for tax evasion, not to save you the transaction fee on cards.) And of course the responsibility for committing credit card fraud is on the criminal, not the bank.
- avianlyric 4y ago
  The costs of fraud aren’t distributed evenly over a credit card companies customers. The ones that pay off every month obviously don’t pay extra, but those that fall into debt traps pay through the nose. > IME businesses that take cash are mostly doing it for tax evasion, not to save you the transaction fee on cards. Business don’t give a shit about saving you money on transaction fees. All of their competitors build it into their prices, so it’s price that drives up consumer costs pretty uniformly, so there’s little advantage in trying to keep that cost down. It not like the businesses customers can find a competitor offer substantially better prices due to lower transaction fees. > And of course the responsibility for committing credit card fraud is on the criminal, not the bank. That doesn’t change the cost involved. I personally don’t give a shite who’s responsible, I just know I’m not responsible, and I don’t want to pay the cost. The current card network fee system is very similar to the US healthcare insurance system. Pharmaceutical companies can charge crazy high prices for medication, because the cost is paid for by insurance companies, the end user is never given the opportunity to shop around. As a result there is little competitive price pressure on pharmaceutical companies, there’s so many layers between them and actual price sensitive user, that they can basically just ignore the user, and rely on insurance companies to find a way to extract the rents the industry wants.

astrange 4y ago

By "bank" I mean the credit card issuer, which is a fairly competitive industry and isn't necessarily your main bank. I think people are pretty aware of what fees their cards have. (IME businesses that take cash are mostly doing it for tax evasion, not to save you the transaction fee on cards.) And of course the responsibility for committing credit card fraud is on the criminal, not the bank.

avianlyric 4y ago
The costs of fraud aren’t distributed evenly over a credit card companies customers. The ones that pay off every month obviously don’t pay extra, but those that fall into debt traps pay through the nose. > IME businesses that take cash are mostly doing it for tax evasion, not to save you the transaction fee on cards. Business don’t give a shit about saving you money on transaction fees. All of their competitors build it into their prices, so it’s price that drives up consumer costs pretty uniformly, so there’s little advantage in trying to keep that cost down. It not like the businesses customers can find a competitor offer substantially better prices due to lower transaction fees. > And of course the responsibility for committing credit card fraud is on the criminal, not the bank. That doesn’t change the cost involved. I personally don’t give a shite who’s responsible, I just know I’m not responsible, and I don’t want to pay the cost. The current card network fee system is very similar to the US healthcare insurance system. Pharmaceutical companies can charge crazy high prices for medication, because the cost is paid for by insurance companies, the end user is never given the opportunity to shop around. As a result there is little competitive price pressure on pharmaceutical companies, there’s so many layers between them and actual price sensitive user, that they can basically just ignore the user, and rely on insurance companies to find a way to extract the rents the industry wants.