6 ms·

US sues Visa for monopoly on debit card use

19 points by LordAtlas 2y ago

Ekaros 2y ago
Why not just cap fees for everyone. To something like 0.1%?
journal 2y ago
That's a drop in the bucket compare to credit card interest rates.
- smt88 2y ago
  Consumers are free to choose never to pay credit card interest rates (by only spending what they can pay off). No one is forced to borrow money. Merchants have to choose between being cash-only and paying Visa's high fees.
  - toomuchtodo 2y ago
    Previously, yes, but the future looks different. Pay by bank with instant payments is rapidly becoming an option (leveraging FedNow instant payments). Combined with the ability of merchants to surcharge credit card transactions, it is relatively straightforward to encourage consumers to low cost payment rails. https://news.ycombinator.com/item?id=41593450 https://news.ycombinator.com/item?id=41593450 ("HN: Walmart Plans Instant Bank Payments, Cutting Out Card Networks") Example service provider offering: https://www.fiserv.com/en/solutions/real-time-payments/now-gateway.html https://www.fiserv.com/en/solutions/real-time-payments/now-g...
    - aramova 2y ago
      After Zelle's rollout I have zero trust in Bank's ability to combat fraud in a consumer friendly matter unless they're required by laws with teeth to do so. There is no way in hell I'd trust this service based on anything I've seen so far. At least with a debit card you have Visa's limited fraud protection in most cases.
      - toomuchtodo 2y ago
        There are billions of dollars of unnecessary interchange fees being paid and in play, so while there might be consumer hesitancy, there are overriding forces. Every major US cellular carrier requires you to pay with ACH now if you want your autopay discount, for example. Little economic nudges work. Surcharge the credit cards and let customers self select to payment rails based on their needs. (FedNow has a closed loop fraud management system, and Reg E likely applies: https://www.consumerfinance.gov/rules-policy/regulations/1005/ https://www.consumerfinance.gov/rules-policy/regulations/100...)
ChrisArchitect 2y ago
[dupe] More discussion: https://news.ycombinator.com/item?id=41639635 https://news.ycombinator.com/item?id=41639635

19 points by LordAtlas 2y ago

Ekaros 2y ago

Why not just cap fees for everyone. To something like 0.1%?

journal 2y ago

That's a drop in the bucket compare to credit card interest rates.

smt88 2y ago
Consumers are free to choose never to pay credit card interest rates (by only spending what they can pay off). No one is forced to borrow money. Merchants have to choose between being cash-only and paying Visa's high fees.
- toomuchtodo 2y ago
  Previously, yes, but the future looks different. Pay by bank with instant payments is rapidly becoming an option (leveraging FedNow instant payments). Combined with the ability of merchants to surcharge credit card transactions, it is relatively straightforward to encourage consumers to low cost payment rails. https://news.ycombinator.com/item?id=41593450 https://news.ycombinator.com/item?id=41593450 ("HN: Walmart Plans Instant Bank Payments, Cutting Out Card Networks") Example service provider offering: https://www.fiserv.com/en/solutions/real-time-payments/now-gateway.html https://www.fiserv.com/en/solutions/real-time-payments/now-g...
  - aramova 2y ago
    After Zelle's rollout I have zero trust in Bank's ability to combat fraud in a consumer friendly matter unless they're required by laws with teeth to do so. There is no way in hell I'd trust this service based on anything I've seen so far. At least with a debit card you have Visa's limited fraud protection in most cases.
    - toomuchtodo 2y ago
      There are billions of dollars of unnecessary interchange fees being paid and in play, so while there might be consumer hesitancy, there are overriding forces. Every major US cellular carrier requires you to pay with ACH now if you want your autopay discount, for example. Little economic nudges work. Surcharge the credit cards and let customers self select to payment rails based on their needs. (FedNow has a closed loop fraud management system, and Reg E likely applies: https://www.consumerfinance.gov/rules-policy/regulations/1005/ https://www.consumerfinance.gov/rules-policy/regulations/100...)

ChrisArchitect 2y ago

[dupe] More discussion: https://news.ycombinator.com/item?id=41639635 https://news.ycombinator.com/item?id=41639635