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> Moving the money is the easy part and is not the main set of problems that the card payment schemes have solved. Nailed it. Anyone can move money. As a cons

by nebezb 1y ago

> Moving the money is the easy part and is not the main set of problems that the card payment schemes have solved. Nailed it. Anyone can move money. As a consumer, I always opt to pay for credit card where available. The safeties provided to me facilitated by everyone in the network – from issuer to acquirer and everyone in between – is exactly why. I don't want to consider waiting 12 months in line at small claims to get back $200 sent over Interac for services that were never provided by a shoddy business owner. The cost of those consumer safeties and convenience is incurred by the merchant. This is the cost of business.

latchkey 1y ago
When you buy something from Amazon, who protects your purchases, Amazon or the credit card company? This "insurance" could be offloaded to a neutral third party that isn't controlled by the credit cards. Often, you purchase additional protection insurance on your big ticket items. This could easily be extended to cover whatever credit cards would have been relied upon in the past.
- nebezb 1y ago
  > This "insurance" could be offloaded to a neutral third party that isn't controlled by the credit cards. I had not considered this. My first thought is how technically and operationally complex it would be for an insurer to underwrite these transactions "on-the-fly" from merchants they don't know, but it is probably a great idea.
  - tmcz26 1y ago
    Look up “chargeback guarantee”. A lot of fraud vendors do this. Costs 2x or more though than the average transaction
    - latchkey 1y ago
      > Costs 2x or more though than the average transaction That's because they compete with credit card companies today. Make them more popular and I bet their costs would come down.
    - nebezb 1y ago
      You’re describing insurance on the merchants side. The post I was referring to described insurance on the consumer side.
dexterdog 1y ago
> The cost of those consumer safeties and convenience is incurred by the merchant. This is the cost of business. That cost is a minimum of 100% passed on to the consumer.

by nebezb 1y ago

latchkey 1y ago

When you buy something from Amazon, who protects your purchases, Amazon or the credit card company? This "insurance" could be offloaded to a neutral third party that isn't controlled by the credit cards. Often, you purchase additional protection insurance on your big ticket items. This could easily be extended to cover whatever credit cards would have been relied upon in the past.

nebezb 1y ago
> This "insurance" could be offloaded to a neutral third party that isn't controlled by the credit cards. I had not considered this. My first thought is how technically and operationally complex it would be for an insurer to underwrite these transactions "on-the-fly" from merchants they don't know, but it is probably a great idea.
- tmcz26 1y ago
  Look up “chargeback guarantee”. A lot of fraud vendors do this. Costs 2x or more though than the average transaction
  - latchkey 1y ago
    > Costs 2x or more though than the average transaction That's because they compete with credit card companies today. Make them more popular and I bet their costs would come down.
  - nebezb 1y ago
    You’re describing insurance on the merchants side. The post I was referring to described insurance on the consumer side.

dexterdog 1y ago

> The cost of those consumer safeties and convenience is incurred by the merchant. This is the cost of business. That cost is a minimum of 100% passed on to the consumer.