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And then we watch fraud soar. The 3% pays for a lot of bad transactions reversals and dispute management.
by wbl 4mo ago
And then we watch fraud soar. The 3% pays for a lot of bad transactions reversals and dispute management.
- toomuchtodo 4mo agoFraud can be managed at instant payment rails, you don't need credit card rails to manage it; fraud must be managed on any rails utilized, so it is somewhat agnostic. If you as a consumer want credit card chargeback protection insurance, push the fee onto the consumer with a surcharge to cover the cost. I believe the evidence is robust credit card rails are unnecessary in today's world, plain and simple. They are a bloated legacy holding on for relevance (and their grossly excessive margins) imho. On fraud management: Pix: https://www.europeanpaymentscouncil.eu/news-insights/insight/pix-latest-updates-brazils-leading-instant-payment-scheme https://www.europeanpaymentscouncil.eu/news-insights/insight... UPI: https://ieeexplore.ieee.org/document/11063926 https://ieeexplore.ieee.org/document/11063926
- Scaled 4mo agoCommon misconception - it's the merchant who pays for fraud and the 3% is pure bank profit. If there's a fraud transaction, the merchant has to pay the whole amount back and ends up negative the transaction fee and the chargeback fee. The banks just want you to think they're earning the 3% but actually it's pure profit.