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I am aware of this. I’m saying it because it’s one of the few things where I believe the US can learn from Europe, just like Europe can learn from the Us. This
by konschubert 2y ago
I am aware of this. I’m saying it because it’s one of the few things where I believe the US can learn from Europe, just like Europe can learn from the Us.
This is not a win for the customer, btw, because the credit card fees get baked into the prices.
- ExoticPearTree 2y agoIt is a win friction-wise. I am pretty sure Visa/Mastercard have negligible costs when processing a transaction, and that 3% is what I guess they think is the upper boundary of what merchants are willing to pay before there's an incentive for a competitor with lower fees to appear.
- konschubert 2y agoVisa/Mastercard are a duopoly, which means they can extract rents. Yes, I’m willing to pay $100 for a liter of water if you’re the only one selling it. I get a lot of value out of it! In a competitive market, competition eventually drives down prices to a price that somewhat approaches the cost of providing the service. This isn’t happening in payment, due to insurmountable network effects.