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What is the regulatory capture? Visa and master card have contract terms that ensure retail capture. That’s a private moat not regulation.
by digitaltrees 3mo ago
What is the regulatory capture? Visa and master card have contract terms that ensure retail capture. That’s a private moat not regulation.
- charlieyu1 3mo agoWhat’s stopping a new competitor to come in apart from regulations? You would expect someone already trying that given how profitable it is
- deleted 3mo ago[deleted]
- digitaltrees 3mo agoThe contracts with merchants prohibited them from accepting other forms of payment. https://www.justice.gov/archives/opa/pr/justice-department-sues-visa-monopolizing-debit-markets https://www.justice.gov/archives/opa/pr/justice-department-s...
- socalgal2 3mo agoYea, I think you have this one backward? it's lack of regulation that allows Mastercard and Visa to say "if you do try to use some other payment process you can't use us". Since MC and Visa own all of it, no business can take that hit to their customer base Some other countries don't have this issue for various reasons.
- charlieyu1 3mo agoIs it a US thing? In many countries there are definitely different payment systems accepted by merchants, just not card based and/or directly linked to a bank account.
- socalgal2 3mo agoYes, it's US (and maybe EU?) thing. https://www.justice.gov/archives/opa/pr/justice-department-sues-visa-monopolizing-debit-markets https://www.justice.gov/archives/opa/pr/justice-department-s...